Wednesday, April 24, 2013
Why It Might Be Good Practice To Keep Your Tax Returns
- Your tax returns can be used as proof and protect your Retirement and Social Security benefits.
- Protect yourself from audits.
- Keeping better records will prevent any surprises regarding taxes owed or refunds due.
- 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.
- 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) 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