Updated
How long should I keep receipts for taxes?
The usual answer is 3 years from the date you filed the return that the receipt supports. That's how long the IRS generally has to assess more tax, and how long you have to amend for a refund. The IRS page "How long should I keep records?" and Publication 583 both tie the retention period to this period of limitations, and some situations stretch it.
| Your situation | Keep records for | Source wording (IRS) |
|---|---|---|
| Standard case: none of the situations below | 3 years | "Keep records for 3 years if situations (4), (5), and (6) below do not apply to you." |
| You file a claim for credit or refund after filing | 3 years from filing, or 2 years from paying the tax, whichever is later | "...whichever is later, if you file a claim for credit or refund after you file your return." |
| You didn't report income you should have, and it's more than 25% of the gross income on the return | 6 years | "Keep records for 6 years if you do not report income that you should report..." |
| You claim a loss from worthless securities or a bad-debt deduction | 7 years | "Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction." |
| You don't file a return | Indefinitely | "Keep records indefinitely if you do not file a return." |
| You file a fraudulent return | Indefinitely | "Keep records indefinitely if you file a fraudulent return." |
| Employment tax records (if you have employees) | At least 4 years after the tax is due or paid, whichever is later | "Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later." |
| Records for property and equipment | Until the period of limitations expires for the year you dispose of the property | "Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property." |
When does the 3-year clock start?
It starts when you file, but an early return counts as filed on the due date. Publication 463 says "a return filed early is considered filed on the due date," and Publication 583 says the same. So filing in February doesn't shorten anything.
For tax year 2026, the Form 1040 due date is April 15, 2027. A freelancer who files on March 1, 2027 is treated as filing on April 15, 2027, so the standard 3-year period runs to about April 15, 2030. If you file late or on extension, count from the day you actually file.
How long should I keep receipts for equipment and other assets?
For as long as you own the asset, plus the limitation period for the year you sell or otherwise dispose of it. The IRS says you need these records "to figure any depreciation, amortization, or depletion deduction" and "the gain or loss when you sell or otherwise dispose of the property." If you trade one asset for another in a nontaxable exchange, keep the records for the old property too, until the period expires for the year you dispose of the new one.
Example (fictional numbers): A freelance video editor buys a $3,400 workstation in 2026 and depreciates it. In 2029 they sell it. The 2029 return is filed in April 2030, so under the standard 3-year period the editor keeps the 2026 purchase receipt until about April 2033, roughly seven years after buying it. The receipt for a $40 cable used up in 2026 can generally go in 2030.
Cars work similarly. Publication 463 says you must keep records of a car's business use "for each year of the recovery period" if you depreciate it.
How long should I keep receipts in case of an IRS audit?
Through the period of limitations for that return, which is the same table above. The period exists because it's the window in which the IRS can generally assess more tax. In the situations with longer periods (substantial unreported income, fraud, no return filed), the window and the retention period stretch with it.
Do bank statements and other records follow the same rules?
Yes. The retention rules cover all records that support income or deductions on a return: receipts, invoices, bank and card statements, mileage logs and your written notes. Publication 583 lists account statements among the supporting documents a business keeps.
Do states have different record-keeping rules?
They can. Each state that taxes income sets its own assessment periods, and some differ from the federal ones. Check with your state's tax agency or your CPA before discarding records that also support a state return.
Should I keep records longer for other reasons?
Sometimes. Both the IRS page and Publication 583 say that before you discard records you no longer need for tax, you should check whether you need them for something else. "Your insurance company or creditors may require you to keep them longer than the IRS does." Leases, loans and contracts often have their own requirements.
Can I keep receipts digitally instead of on paper?
Generally yes. Publication 583 applies the same rules to electronic storage as to paper records. The system must be able to "index, store, preserve, retrieve, and reproduce" records legibly. A scan or photo you can't read doesn't help, so check each one when you save it. See how to organize receipts for taxes for a simple filing setup, and IRS receipt requirements for what each receipt needs to show.
A practical retention plan
- Each spring after filing: put that tax year's receipts, statements and notes in one labeled folder, along with a copy of the filed return.
- Asset folder: keep purchase records for equipment, vehicles and property separately, with no discard date until you dispose of the asset.
- Before discarding anything: check the table above, your state's rules and any lender or insurer requirements, and ask your CPA if you're unsure.
When tax season comes, the small business tax prep checklist covers what to hand your CPA.
Where Amy fits
The hard part isn't keeping records; it's knowing which ones you still need. Amy reads the statements and receipts you already have and tells you what's missing while there's still time to find it. Keep your own copies for the retention periods above.
