Good recordkeeping can cut your taxes and make your financial life easier.
How long to keep records is a combination of judgment and state and federal statutes of limitations. Since federal tax returns can generally be audited for up to three years after filing and up to six years if the IRS suspects underreported income, it’s wise to keep tax records at least seven years after a return is filed. Requirements for records kept electronically are the same as for paper records.

Generally, follow these recommended retention periods for various documents:

Tax Returns (uncomplicated) - 7 years

Tax returns (all others) - Permanent

W-2s - 7 years

1099s - 7 years

Cancelled or substitute checks supporting tax documents - 7 years

Bank deposit slips - 7 years

Bank Statements - 7 years

Charitable contribution documentation - 7 years

Credit Card Statements - 7 years

Receipts, diaries, logs pertaining to tax returns - 7 years

Investment purchase and sales slips - Ownership period + 7 years

Dividend reinvestment records - Ownership period + 7 years

Year-end brokerage statements - Ownership period + 7 years

Mutual fund annual statements - Ownership period + 7 years

Investment property purchase documents - Ownership period + 7 years

Home purchase documents - Ownership period + 7 years

Home improvement receipts and cancelled checks - Ownership period + 7 years

Home repair receipts and cancelled checks - Warranty period for item

Retirement plan annual reports - Permanent

IRA annual reports - Permanent

IRA nondeductible contributions (Form 8606) - Permanent

Insurance policies - Life of policy + 3 years (Check with your agent.  Liability for prior years can vary.)

Divorce documents - Permanent

Loans - Term of loan + 7 years

Estate Planning Documents - Permanent