Ask the Tax Editor, September 11: How Long to Keep Tax Returns

Each week in our Ask the Tax Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week, she's looking at four tax questions from readers, including one on how long taxpayers should keep tax returns and other records. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. How long to keep tax returns

Question: I am a pack rat and have kept my old tax returns, tax records, financial statements and more for many years. When can I start throwing these out?

Joy Taylor: As a general rule, you should keep your tax returns and supporting documents for at least three years from the due date of your return. That’s generally how long the IRS has to question items on your return and to bill you for any additional tax. It’s also generally the timeframe to file an amended return to seek a refund. There are situations when the IRS can audit even older returns. The IRS can go back up to six years if your return omits more than 25% of income. If fraud is proven, there is no limit. Also, you may have to keep your state tax returns for longer than three years, depending on your state's rules.

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But don’t automatically throw out all of your tax returns and records after three years. Look over old documents to see if you might need any parts of them in the future. And there are some records you can toss earlier than three years.

For more information, see "How long to keep tax returns and records?".

2. Investment management fees

Question: I know that if I own an investment portfolio that is managed by an investment management firm, I cannot deduct the management fees on Schedule A of my Form 1040. But what if I pay for an investment letter, say, Stanberry Research, to help me with option trading that I do? Is this cost deductible on Schedule A if I itemize?

Joy Taylor: No. Investment management fees and similar investment expenses, such as the subscription cost for an investment letter, are not deductible on Schedule A. These all fall in a category of miscellaneous deductions that Congress temporarily repealed in the 2017 Tax Cuts & Jobs Act and permanently repealed in last year's One Big Beautiful Bill.

3. One Big Beautiful Bill or Working Families Tax Cuts

Question: I keep hearing lawmakers talk about the working families tax cuts. What is this? Did Congress pass another big tax bill this year?

Joy Taylor: No, the last large tax law passed by Congress was last year's "One Big Beautiful Bill." In July 2025, Congress enacted legislation, the original short title of which was the "One Big Beautiful Bill Act." However, soon before the Senate voted on its version of the House-passed legislation, Democrats required that short title be struck from the bill. The full title of the law is "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14." This doesn't roll off the tongue quite as easily as the One Big Beautiful Bill, and Congress, President Trump, tax experts and many media outlets, including Kiplinger, have referred to the law as the "One Big Beautiful Bill" for the past year.

Now, with the midterm elections taking place in November, we are seeing House and Senate Republicans, the IRS and other federal agencies and departments refer to the law as the "Working Families Tax Cuts." Republican lawmakers seem to think this sounds better than "One Big Beautiful Bill." Despite the recent attempt at rebranding through a name change, "Working Families Tax Cuts" and "One Big Beautiful Bill" refer to the same thing.

4. Inherited property

Question: I inherited a piece of real estate when my father died in 2010. I just sold the real estate. I didn't get an appraisal for the value of the property when my dad died. Can I now use the assessed value of the property from the real estate tax statement for the year my father passed away for the purpose of determining how much taxable gain I have on the sale?

Joy Taylor: Generally, for inherited property, you determine the stepped-up basis (to fair market value) on the date of the decedent's death. It's best to get an appraisal at the time the property is inherited.

Since you did not do this, maybe you can go back and look at the value of similar properties that were sold around the time of your father's death to help determine fair market value in 2010. Otherwise, you should be able to use the assessed value of the property from the 2010 real estate tax assessment, but normally, assessed values on those statements are a bit lower than what one can actually sell the property for.

About Ask the Editor, Tax Edition

Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

We have already received many questions from readers on topics related to tax changes in the One Big Beautiful Bill, retirement accounts and more. We will continue to answer these in future Ask the Editor roundups. So keep those questions coming!

More Reader Questions Answered

• All Ask the Editor Q&As
• Ask the Editor: Will I be Audited by the IRS?
• Ask the Editor: Estimated Tax Payments and Withholding
• Ask the Editor: Questions on Selling a Home
• Ask the Editor: 10-Year Rule for Inherited IRAs
• Ask the Editor: Tax Questions on Roth IRA Conversions
• Ask the Editor: Tax Rules for Landlords