There are many good reasons to keep good records, not the least of which is to support your income tax filings. The IRS offers some good tips for individuals on maintaining records. Here are a few:

• Basic documents to support your tax return information including W-2s, 1099s, bank statements, brokerage statements, etc.
  
  
• To support expenses, receipts (including those for charitable contributions), canceled checks, and other items to prove various payments.
  
  
• Proof of payment for items purchased in cash, by check or credit/debit card should include the amount, the payee name, and the transaction date among other information
  
  
• Statements from financial institutions and paychecks may provide valuable information for proof of payment and should include similar information as payments by other forms (cash, check, etc.)
  
  
• Divorce or separation documentation should be maintained if the taxpayer pays or receives alimony from their former spouse
  
  
• Casualty losses should be documented as to time, type of loss, and ownership of property damaged
  
  
• Contributions, such as those made to charities, should be documented with receipts, etc. (further information is listed in Publication 526, Charitable Contributions, available through the IRS website)
  
  
• Child Care credit should be supported by information related to the caregiver, including name, address and tax identification number. (Note: Form W-10, Dependent Care Provider's Identification and Certification can be used to acquire this information.)
  
  
• Education expenses should be supported by scholarship information, receipts, etc.
  
  
• Gambling winnings and losses should be supported by a diary of your gambling activity with dates, types of gambling, location, etc. noted. (Note: Publication 529, Miscellaneous Deductions, is available through the IRS website)
  
  
• Individual Retirement Arrangements (IRAs) - documentation should be maintained including distribution and contribution forms and related support
  
  
• Health Savings Accounts (HSAs) and Medical Savings Accounts (MSAs) - medical expenses paid with HSA or MSA distributions should be supported by proper documentation as to payee, amount and date.
  
  
• Medical and dental expenses may be recorded in a diary, as well as expenses related to transportation associated with office/hospital visits. Any associated fees such as parking, etc. should also be maintained.
  
  
• Form 1098, which lists mortgage interest, should be kept with associated loan information.
  
  
• State tax forms should be kept
  
  
• Real and personal property records, including receipts and assessments, should be kept
  
  

The IRS suggests the following periods of time for maintaining records, based on your personal experience:

1. If you owe additional tax and numbers 2, 3, and 4 below do not apply, 3 years is the suggested time period to retain records.
   
   
2. If you have not reported income that you are required to and the unreported amount constitutes 25% of the gross income shown on your tax return, 6 years is the suggested time period to retain records.
   
   
3. If you have filed a fraudulent tax return, there is no period of limitation in which a taxpayer may amend their return to claim a credit or refund or the IRS can assess additional tax.
   
   
4. If you do not file a return, like number 3 above, there is no period of limitation in which a taxpayer may amend their return to claim a credit or refund or the IRS can assess additional tax.
   
   
5. If you file a claim for credit or refund after you initially filed your tax return, the period of limitation is the later of 3 years or 2 years after the tax was paid.
   
   
6. If you file a claim for a loss from worthless securities, 7 years is the suggested time period to retain records.
   
   

For more information on recordkeeping for individuals, visit the IRS site to read IRS Publication 552, Recordkeeping for Individuals (PDF)