Organization

How Long Should You Keep Receipts? A Complete Guide

5 min read
January 3, 2025

The Short Answer

Different receipts need to be kept for different lengths of time:

  • Everyday purchases: Until the return window closes (typically 30-90 days)
  • Warranty items: Until the warranty expires (1-10+ years)
  • Tax-related purchases: 7 years (to cover IRS audit periods)
  • Major purchases and home improvements: Indefinitely (for resale value or insurance claims)

Let's break down each category.

Everyday Purchase Receipts

Keep for: 30-90 days (until the return window closes)

For routine purchases — groceries, household items, clothing — you only need the receipt long enough to return the item if needed. After that, they're clutter.

Tips:

  • Check the store's return policy (it's usually on the receipt)
  • Stores like Costco have unlimited returns on most items
  • Some stores can look up purchases with your credit card

Warranty Receipts

Keep for: Duration of warranty + 30 days

If an item has a warranty, keep the receipt until the warranty expires. The receipt proves:

  • When you bought it (warranty start date)
  • Where you bought it (authorized retailer)
  • What you paid (for repair value calculations)

Common warranty periods:

  • Small electronics: 1 year
  • Major appliances: 1-2 years (often extendable)
  • TVs and computers: 1-3 years
  • Power tools: 2-5 years
  • Mattresses: 10-20 years

Pro tip: Register your product with the manufacturer. They'll have your purchase on file, reducing your dependence on the paper receipt.

Tax-Related Receipts

Keep for: 7 years

The IRS generally has 3 years to audit your return, but this extends to 6 years if income is substantially underreported. Seven years gives you a comfortable buffer.

Receipts to keep for taxes:

  • Business expenses
  • Charitable donations
  • Medical expenses (if deducting)
  • Work-related expenses
  • Home office expenses
  • Educational expenses

You don't need paper: The IRS accepts digital copies. Scan or photograph receipts and organize them by year.

Major Purchases

Keep for: As long as you own the item

For big-ticket items, receipts serve multiple purposes beyond returns and warranties:

  • Insurance claims — If items are stolen or damaged, you'll need proof of value
  • Resale — Buyers of used items often want proof of purchase
  • Capital gains — For items that appreciate (art, collectibles), you need purchase price records

Examples:

  • Furniture
  • Jewelry
  • Electronics over $500
  • Sporting equipment
  • Musical instruments
  • Appliances

Home Improvement Receipts

Keep for: As long as you own the home + 7 years

Home improvement costs can be added to your home's cost basis, reducing capital gains tax when you sell. Keep receipts for:

  • Renovations and remodels
  • New roof, HVAC, water heater
  • Additions and structural changes
  • Landscaping and fencing
  • Appliance installations

Important: Repairs (fixing a leaky faucet) don't count. Improvements (installing a new faucet) do. Keep improvement receipts, toss repair receipts after the warranty period.

Vehicle Receipts

Keep for: As long as you own the vehicle

Maintenance records affect resale value and can help with warranty claims:

  • Oil changes and routine maintenance
  • Tire purchases
  • Major repairs
  • Part replacements

After selling: Keep records for 2-3 years in case of disputes.

Medical Receipts

Keep for: 1 year (or 7 years if tax-deductible)

Most people don't need to keep medical receipts long-term unless:

  • You're deducting medical expenses on taxes
  • You have an HSA/FSA to reconcile
  • You're tracking for insurance reimbursement

Your insurance company and healthcare providers maintain records. You only need receipts for your own tax or reimbursement purposes.

The Modern Approach: Go Digital

Paper receipts fade, get lost, and take up space. Digital storage solves all of this:

Options:

  1. Email receipts — Request email receipts whenever possible
  2. Scan or photograph — Use your phone's camera or a scanner app
  3. Receipt management apps — Apps like Recevity automatically extract and organize receipt data
  4. Cloud storage — Dropbox, Google Drive, iCloud

Organization tips:

  • Create folders by year and category
  • Use consistent naming: "2025-01-15_BestBuy_TV.pdf"
  • Back up to multiple locations
  • Set annual reminders to purge old receipts

Receipt Retention Cheat Sheet

Receipt TypeKeep ForNotes
Groceries & everyday items30-90 daysUntil return window closes
Clothing30-90 daysCheck store return policy
Electronics with warrantyWarranty period + 30 daysRegister products for backup
Major appliancesWarranty periodOften 1-2 years minimum
Extended warranty itemsExtended warranty periodCould be 5-10 years
Business expenses7 yearsTax audit protection
Charitable donations7 yearsNeed for tax deduction
FurnitureWhile you own itFor insurance claims
JewelryIndefinitelyFor insurance and resale
Home improvementsWhile you own home + 7 yearsAffects home cost basis
Vehicle maintenanceWhile you own vehicleAffects resale value
Medical (if deducting)7 yearsFor tax purposes
ATM/bank receiptsUntil statement arrivesThen reconcile and discard

When in Doubt

If you're unsure whether to keep a receipt:

  1. Is it tax-related? Keep 7 years
  2. Does it have a warranty? Keep until warranty expires
  3. Could you need to return it? Keep until return window closes
  4. Is it a major purchase? Keep indefinitely
  5. None of the above? Toss it

The goal is to keep what you need and eliminate clutter. A thoughtful system beats keeping everything or nothing.

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