Your tax documents - what to keep and shred
(BPT) - Whether you use old-fashioned manila filing folders, a flash drive or cloud storage, tax and personal finance authorities agree on the importance of saving tax documents and records. In addition to using the information for preparing your next income tax return, it may come in handy years from now.
“Your tax data is helpful and often required in many non-tax financial situations,” says TaxACT spokesperson Jessi Dolmage. “For instance, insurance companies, lenders and creditors often use tax information to verify income and asset value. Form W-2s can provide proof of income if your Social Security benefits are less than what they should be.”
Information to save for your next tax return