How long should you keep receipts?
For most people the answer is three years. A few situations call for longer, though, and some receipts matter for reasons that have nothing to do with taxes.
The IRS rule of thumb
The IRS generally says to keep records that support a tax return for as long as the return can be audited or amended. In practice, that works out to:
- 3 years from the date you filed, for most returns.
- 6 years if you left out more than 25% of the income you should have reported.
- 7 years if you claim a loss from worthless securities or a bad debt deduction.
- Indefinitely if you never filed a return, or filed a fraudulent one.
- 4 years for employment tax records.
Keep some receipts longer
Anything that affects what you’ll owe when you sell something should outlive the three-year window.
- Home improvements raise your cost basis, so keep them until at least three years after you sell the home.
- Big purchases and appliances, for warranties, returns and insurance claims.
- Anything tied to a dispute, claim or loan, until it’s settled.
Are digital copies okay?
The IRS generally accepts legible, complete electronic copies of receipts, as long as you can produce them if asked. A clear photo of the original is usually enough, and it’s a lot easier to search than a shoebox.
One caveat
This is general information for US taxpayers, not tax advice. Rules differ by country and state, so check with a tax professional about your own situation.