Retirement may mean leaving the daily commute behind, but it does not mean leaving tax paperwork behind with it. In fact, retirees often juggle several different income streams, including Social Security, pensions, IRA withdrawals, investment income, and sometimes part-time work, making good recordkeeping particularly valuable. Keeping the right tax records for retirees organized can make annual filing easier while also providing backup if the IRS questions an item on a return. The IRS generally recommends retaining records supporting income, deductions, and credits until the applicable period of limitations expires, which is commonly three years but can be longer in certain situations.
But the familiar “keep tax records for three years” advice doesn’t apply neatly to everything. An IRA basis document or decades-old home-improvement receipt could still matter long after an ordinary deduction receipt has become irrelevant. That said, retirees should hold on to these eight tax records.
