Are you wondering how long TurboTax keeps your tax returns? It's a crucial question for anyone who uses the popular tax software, whether for audit protection, future reference, or simply peace of mind. The good news is, TurboTax offers a pretty robust system for accessing your past tax filings, but there are some important details and best practices you should be aware of. Let's dive in!
The Golden Rule: 7 Years of Access with TurboTax Online
Did you know that TurboTax generally retains your online tax returns for the past 7 years? This aligns directly with the IRS's own recommended retention period for most tax documents. This means if you filed your taxes with TurboTax Online for the past several years, you should be able to access those returns directly from your account.
Step 1: Engage with Your Past Self – Why Do You Need Your Old Returns?
Before we even talk about how to access them, take a moment to consider why you're looking for your past tax returns. Are you:
Applying for a mortgage or loan?
Preparing for an audit (hopefully not!)?
Need to amend a previous year's return?
Just curious about your financial history?
Understanding your purpose will help you determine which year's return you need and whether you need the full return or just a transcript.
Step 2: Accessing Your Returns on TurboTax Online – The Digital Vault
If you've been a loyal TurboTax Online user, retrieving your past returns is surprisingly straightforward.
Sub-heading: Logging In to Your TurboTax Account
Head to the Official TurboTax Website: Always ensure you're on the legitimate TurboTax website (turbotax.intuit.com) to protect your sensitive tax information. Beware of phishing scams!
Sign In: Use your registered User ID and Password. If you've forgotten them, utilize the "Forgot User ID" or "Forgot Password" links to regain access.
Sub-heading: Navigating to Your Tax Returns & Documents
Tax Home: Once logged in, you'll typically land on your "Tax Home" dashboard.
Scroll Down: Look for a section titled "Your tax returns & documents" or something similar. This is your digital archive.
Select the Year: Within this section, you'll see a list of years for which you've filed returns with TurboTax. Click on the specific tax year you need.
Sub-heading: Downloading or Printing Your Return
Choose Your Action: After selecting the year, you'll usually have options like "Download" or "Print Return."
Download as PDF: It's highly recommended to download a PDF copy of your tax return. This gives you a digital, printable record that you can save locally.
Save and Backup: Once downloaded, save the PDF to a secure location on your computer or an external drive. Consider cloud storage for additional backup and accessibility.
Step 3: Understanding the "7-Year Rule" and IRS Recommendations
While TurboTax holds onto your returns for 7 years, it's crucial to understand why this period is significant and what the IRS recommends.
Sub-heading: The IRS Statute of Limitations
The IRS generally has a 3-year window to audit your return or assess additional tax from the date you filed your original return (or the due date, if filed early). However, there are exceptions that extend this period:
6-Year Rule: If you underreport your gross income by more than 25%, the IRS has six years to assess additional tax.
7-Year Rule (Worthless Securities/Bad Debts): If you claim a deduction for a loss from worthless securities or a bad debt, the period extends to 7 years.
Indefinite Period: If you file a fraudulent return or fail to file a return at all, there's no statute of limitations, meaning the IRS can pursue you indefinitely.
This is why the 7-year retention by TurboTax aligns with the most common extended audit window.
Sub-heading: Beyond 7 Years – What to Do?
If you need a return older than 7 years that you filed with TurboTax Online, you will not be able to access it directly through their platform. In such cases, you'll need to:
Contact the IRS Directly: You can request a tax return transcript or a copy of your full tax return from the IRS by filing Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return. There might be a fee for a copy of the full return.
Check Your Personal Archives: Hopefully, you've been diligently saving your own copies!
Step 4: TurboTax Desktop Users – Where Are Your Files?
If you use the TurboTax Desktop software (CD/download version), the situation is different.
Sub-heading: Local Storage is Key
Your tax returns are stored directly on the computer where you prepared them. They are not automatically uploaded or stored on TurboTax's online servers.
Locate the
.taxfile: The software saves your tax return as a.taxfile (e.g.,My2023Return.tax2023). You'll need the correct year's TurboTax desktop software installed to open and view these files.PDF Copies: When you file with the desktop version, you're usually prompted to save or print a PDF copy of your return. This is your best and most accessible record. Make sure you do this for every year!
Sub-heading: Backup, Backup, Backup!
For desktop users, regularly backing up your .tax files and PDF copies to an external hard drive, USB flash drive, or cloud storage service is absolutely critical. If your computer crashes, you could lose all your tax records!
Step 5: Best Practices for Tax Record Keeping – Your Responsibility
While TurboTax is a great tool, your personal record-keeping habits are paramount.
Sub-heading: Create a Digital and Physical Filing System
Digital Folders: Create a clear folder structure on your computer (e.g., "Taxes" -> "2024" -> "Federal," "State," "W2s," "1099s," "Receipts").
Print and Store: Even if you file electronically, consider printing a physical copy of your complete tax return and storing it in a dedicated file cabinet.
Scan Supporting Documents: Digitize all your receipts, W-2s, 1099s, bank statements, and other supporting documents. Organize them by tax year.
Sub-heading: Ongoing Maintenance
Review Annually: Before starting a new tax year, take a few minutes to review your previous year's records.
Secure Disposal: When you decide to discard old tax documents (after the recommended retention periods), shred them thoroughly to protect your personal information.
Step 6: Audit Defense and TurboTax
TurboTax often offers an "Audit Defense" service, usually through a partnership with TaxAudit.com.
Sub-heading: What Audit Defense Offers
If you purchase Audit Defense when you file, TaxAudit.com will represent you if you receive an audit notice from the IRS or state taxing authority.
This service typically covers up to three years after filing, aligning with the primary IRS audit window.
It's an optional add-on and provides peace of mind that a tax professional will handle communication with the tax authorities on your behalf.
Conclusion
TurboTax provides a convenient way to access your tax returns for a significant period – typically 7 years – for online users. However, it's essential to understand that this is a service provided by TurboTax, and you remain ultimately responsible for maintaining your own tax records. By combining TurboTax's accessibility with diligent personal record-keeping, you'll be well-prepared for any future needs, whether it's refinancing your home or responding to an IRS inquiry.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions to help you further understand TurboTax's role in keeping your tax returns and your own responsibilities:
How to access my past tax returns if I used TurboTax Online?
You can access your past TurboTax Online returns by logging into your TurboTax account, navigating to "Your tax returns & documents," and selecting the desired year to download or print.
How to get a copy of a tax return older than 7 years from TurboTax?
If your return is older than 7 years, TurboTax will no longer have it available. You'll need to request a copy or transcript directly from the IRS using Form 4506 or Form 4506-T.
How to save my TurboTax Desktop tax returns?
TurboTax Desktop saves your returns as .tax files on your computer. It's crucial to also save them as PDF copies and back them up to an external drive or cloud storage.
How to know if I used TurboTax Online or Desktop?
If you accessed TurboTax through a web browser and didn't install software, you used TurboTax Online. If you purchased a CD or downloaded software to your computer, you used TurboTax Desktop.
How to get audit support from TurboTax?
TurboTax typically partners with TaxAudit.com to offer an optional "Audit Defense" service, which you can purchase when you file your taxes. This service provides professional representation in case of an audit.
How to ensure my tax data is secure with TurboTax?
TurboTax uses various security measures to protect your data, including encryption. You can enhance security by using a strong, unique password and enabling two-factor authentication on your account.
How to delete my TurboTax account or data?
Generally, TurboTax accounts cannot be completely deleted, especially if you've filed returns through them. However, you can make a data deletion request for specific products through your Intuit Account Manager.
How to keep my tax records even without TurboTax?
Regardless of the software used, it's essential to save PDF copies of your filed returns and retain all supporting documents (W-2s, 1099s, receipts, etc.) in an organized manner, both digitally and physically.
How to know how long the IRS recommends keeping tax records?
The IRS generally recommends keeping records for 3 years from the date you filed your return. However, this extends to 6 years if you underreport income by more than 25%, and 7 years for worthless securities or bad debt deductions.
How to find my Adjusted Gross Income (AGI) from a previous year's TurboTax return?
You can find your AGI on your tax return summary or the first page of your Form 1040 from the previous year's return, which you can access through your TurboTax Online account.
