In my effort to purge my house of unwanted clutter a few months ago, I came across A LOT of paperwork. Some of it, I know I have to keep, but some of it, I’ve stashed away just in case. The thing is, “just in case” is starting to get a little overwhelming, so I decided to find out exactly how long I need to keep it all.
After a little digging, here’s the 411 on paperwork:
- Receipts. These really pile up, especially after Christmas. If they are for standard goods, keep them only until the warranty expires or until the exchange/return policy runs out. If they are for tax purposes, keep them for 3 years.
- ATM receipts. If you bank online, you can toss these {shred them} as soon as you’ve verified the amount recorded on your account is the same as the receipt. If you still go with paper statements, balance them to the statement each month and then toss them.
- Paycheck stubs. Keep them for one year. Make sure to double check them to your W-2’s and social security statements, then shred them.
- Utility bills. If you take a home office deduction, you need to keep these for 3 years, otherwise, you can get rid of them after a year.
- Bank statements. Again, unless you need them for tax purposes {3 years}, you can get rid of them after one year.
- Credit card statements. Keep until reconciled, or 3 years if needed for tax purposes.
- Income Tax Returns. Hold onto these for 3 years.
- Medical bills. Keep these for 3 years.
- Records of selling a house. 3 years.
- Annual investment statements. Hold onto these for 3 years AFTER you sell your investment.
- Records of paid-off loans {other than home mortgages}. Keep for 7 years.
- Keep the following forever: marriage licenses, birth certificates, wills, adoption papers, death certificates, records of paid mortgages.
Now that I know how long to keep everything, I can sort through the little piles that build up over the year–and really give my shredder a workout.
~Mavis
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Madam Chow says
My two cents as someone who has practiced in the tax field: never get rid of your tax returns and their supporting documentation. Ever. If you must, scan it, and keep several copies of the scanned documents on different jump drives, etc.
Chili says
I thought the IRS can audit you up to 7 years after a tax return is filed… so I would keep all tax records at least 7 years.
Carole Browne says
I agree with Madam Chow. Never get rid of tax forms. If they are paper form, keep at least 7 years. I work in Records Holding for the IRS and we always recommend that you hold onto tax forms that long. You can scan them after that for longer storage.