When It’s OK to Get Rid of Past Tax-Time Paperwork

Sorting through your tax-time paperwork is certainly burdensome, but worse still is having to store it for years without ever knowing when it’s OK to get rid of it. Wisebread says that while you should keep a copy of each return indefinitely, taxpayers can shred most supporting documents after three years. Keep only the paperwork that lists the purchase price of any securities you own, so that you can later report any gains or losses. If you claimed a capital loss on a past year’s return, however, keep that documentation for seven years.