Records that support the income you report each year can be kept in a file together with your copy of your tax return.
Paycheck stubs or pay statements. You may want to keep these until you receive your W-2 form, summarizing your compensation for the year.
W-2 – Wage and Tax Statement. This is the support for the amount you report on your tax return, and should be filed with your copy of your tax return. Note: You may want to keep copies of your W-2’s until retirement or until you begin receiving social security benefits. This will serve for verification purposes in case any question arises concerning your work record or earnings. You can review your accumulated earnings and benefits by requesting a Social Security Statement online at the Social Security Administration website.
Diary of tip income. Keep your own diary or other record of tip income, or IRS Form 4070A, Employee’s Daily Record of Tips, if you used that form.
Documentation of awards, bonuses, stock options, and other incentives you received as an employee. These should be included in your W-2.
Unemployment compensation statements and Form 1099-G
1099 Forms for interest, dividends, capital gain distributions, and other income
Brokerage statements (to support capital gains and losses)
Pensions and Annuities. Keep copies of receipts, or statements of the amounts you receive, and copies of the worksheet in the tax return instructions to figure the taxable part of your pension or annuity. Copies of these completed worksheets should be kept until you fully recover your contributions to the pension or annuity plan.
If you are self-employed, your business accounting records will serve as the documentation to prepare the appropriate tax return schedules, such as schedule C or C-EZ, and to support the business income you are reporting. Self-employed persons should also keep copies of tax returns, with Schedule SE for Self-Employment Tax indefinitely, for social security purposes.
K-1 schedules for your share of partnership income
When you sell your home or other asset, your records should show the sales price and any selling expenses, such as commissions. You will also need to know the adjusted basis of your home or other asset, to determine the gain or loss on the sale.
Gambling winnings and losses. Keep a log or other record of your winnings and losses, that show the date and type of gambling activity, name and address or location of the gambling establishment, names of other persons present with you at the gambling establishment, and the amount you won or lost.
Credit card statements and receipts, and confirmations and statements of electronic funds transfers for any other income you received.