There are things some people can’t seem to part with, and financial documents seem to be among them.  We’re often asked how long one should keep their tax returns and all of the documents used to create them.

Below is what we recommend to our clients when they ask. You might also consider getting a scanner and storing the files digitally rather than keeping a large amount of paper.

• Income tax returns and supporting documents should be kept 7 years, after which all but the tax returns themselves and any W2’s can be discarded.
• Purchase receipts for stocks, bonds, mutual funds, and the like should be kept for 7 years after the asset is sold.

If you’re not sure, ask us, or just hang on to it.