#Is dropbox secure for tax documents how to#

Owners who have lived in their home for decades may be enticed to downsize and cash in their gains. Home prices logged a nearly 17% annual gain in 2021, with some cities seeing even faster price appreciation, according to the National Association of Realtors (go to “ Where Home Prices Are Headed in 2022 (opens in new tab),” for more on home prices). The housing market is still making headlines as it sizzles for sellers.

#Is dropbox secure for tax documents how to#

For advice on how to store documents in a digital format, see below.

If you invest in stocks and mutual funds in taxable accounts, you may also need to keep documents showing your purchases until you sell-which may be much longer than three years. You might need to keep a W-2 for more than three years to document your income if you plan on buying a home. (opens in new tab)Įven if you’re confident you’ll never be audited, you may need to keep tax documents for other purposes. This sometimes happens to freelancers who lose track of a stray 1099 or individuals who win the lottery or some other type of cash prize and fail to report all of their winnings.

The IRS has six years from the date you file your return to audit you if you underreport your income by more than 25%. There are important exceptions to the three-year audit rule. Make the Most of Your Charitable Donations