Good recordkeeping of tax documents is a great way to be prepared and reduce the stress of filing next year’s tax return. Records that you should keep every year include information regarding the purchase or sale of property, tax records, business income and expenses, health insurance information, and prior year tax returns. This year has seen lots of changes, including new tax laws; and with that comes new tax-related information that should be retained, such as Economic Impact Payment documentation and letters about the advance payments of the 2021 Child Tax Credit.
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Source: Internal Revenue Service