Keep Your Old Tax Returns Handy
You’ve probably held on to your old tax returns in case you’re ever audited. But you may find them useful when you do your taxes this year.
Looking over previous year’s returns may remind you of important deductions you may have forgotten or whether there were any changes that could affect your current tax situation.
The documents also may include the complete names, birth dates and Social Security numbers of others who may need to be listed on your current tax form.
How long to keep records?
It's a good idea to keep your paperwork until the chance of a tax audit passes -- usually, three years after filing.
However, if the IRS thinks you might have underreported your income by 25 percent, it has six years to check up on you. So, you may want to keep your tax documents for at least that long.
And just to be safe, any paperwork related to the sale or purchase of your home should be kept for as long as you own it.
Neither Nationwide nor any of its representatives give tax or legal advice. Federal tax laws are complex and subject to change. Please consult your tax or legal adviser for answers to your specific questions.