Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

A Member of the Law Professor Blogs Network

Wednesday, April 24, 2013

Why It Might Be Good Practice To Keep Your Tax Returns

1040Many people ask how long they should keep their tax returns. Some believe keeping your returns for 3-6 years is enough time. However, there are many reasons why you should at least keep an electronic copy of all of your tax returns. Below are some reasons why keeping your tax returns is a good idea. 
  1. Your tax returns can be used as proof and protect your Retirement and Social Security benefits.
  2. Protect yourself from audits.
  3. Keeping better records will prevent any surprises regarding taxes owed or refunds due.
  4. Sometimes insurance policies switch companies and the payout of a policy can be an issue. If you need to prove the payout amount, you can do that with a tax return.
  5. Keeping your tax returns can greatly benefit your IRA and retirement plan contributions. Your state deduction may mean part of your contribution will not be taxable. Additionally, if you made non-deductible contributions for federal purposes it might mean the IRS may not tax part of your contribution.

See Eva Rosenberg, Never Throw Away Your Tax Returns Why You May Need Those Old 1040's Someday, MarketWatch.com, Apr. 22, 2013. 

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) ‚Ä®for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2013/04/why-it-might-be-good-practice-to-keep-your-tax-returns.html

Current Affairs, Income Tax | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01901b849236970b

Listed below are links to weblogs that reference Why It Might Be Good Practice To Keep Your Tax Returns:

Comments

Post a comment