Sponsor spotlight A guide to tax record retention

Edmonds, WAFinance

To prepare for potential audits, taxpayers must keep their Form 1040 indefinitely and retain supporting documents like W-2s and receipts for at least seven years. Records related to property and investments should be preserved for seven years after their sale to verify cost basis and gains. State revenue departments may impose longer retention requirements than the federal standard. Taxpayers are advised to organize records by year and align them with Form 1040 to simplify the audit process. Creating digital backups through scanning can add an extra layer of security.

Additionally, individuals should shred old documents rather than discarding them carelessly. Being vigilant about what to keep versus shred is crucial; retain documents unless they can be easily replaced. This proactive approach will help taxpayers navigate the tax environment effectively in 2025.

Related Articles

Scene in Edmonds Around town - My Edmonds News

Edmonds' community shines with local events and activities highlighted in "Scene in Edmonds: Around town." The article features vibrant imagery capturing the essence of the town, showcasing its lively atmosphere. Published on June 30, 2025, it serves as a reminder of the town's community spirit.

Spark! Creativity inaugural fundraiser celebrates future of arts education

The Cascadia Art Museum hosted the inaugural Spark! the Future fundraiser on June 28, celebrating arts education for underserved youth through the nonprofit Spark! Creativity. The event featured a silent auction, local food and beverages, and remarks emphasizing the importance of arts education in schools.

Gas tax will rise in Washington on July 1

Washington will increase its gasoline tax by 6 cents per gallon on July 1, the first hike in nine years, as part of a $3.2 billion transportation package. The increase aims to address a $1 billion shortfall in the transportation budget due to rising construction costs and declining gas tax revenues. The state's gas tax will reach 55.4 cents per gallon, making it the third-highest in the nation.