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Health & Fitness

Taxes done? Time to toss!

Susan Anselmo Stone's profile picture
Susan Anselmo Stone, Neighbor
Federal returns can generally be audited for up to 3 years, and up to 6 if the IRS suspects underreporting - so it's best to hold on to tax records for 7 years.  So pull out those stacks of papers from 2006 and earlier and see what can be shredded.  I've found it easiest to store tax-related papers in expandable wallets with the year written on the front. Here is a basic Rule of Thumb for how long individuals should keep records (I’m not qualified to give tax advice so remember to always check with your accountant first because your situation may be different). And don’t forget those documents you have kept electronically! (If you want more tips on reducing clutter and getting more organized - join me at the Lynch/vanOtterloo YMCA next Tuesday April 29 6-7pm)

Permanently

Copies of income tax returns

Important correspondence

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Investment trade confirmations (for 7 years after investment is sold)

IRS or State Audit Reports

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Legal Records (such as wills)

Medical records

Military papers (for Veteran's benefits)

Personal Certificates (birth, death, marriage, divorce, religious)

Property Records/Improvement Records (for 7 years after property sold)

Retirement and Pension Plan Records

Tax Payment Checks

 

Until

Car records until car is sold

Credit card receipts until verified on monthly statement

Insurance policy for life of policy

Mortgages/Deeds/Leases for 6 years beyond the agreement

Non deductable bills – until payment verified on next bill

Pay stubs until reconciled with your W-2

Sales receipts for life of warranty

Stock and bond records for 7 years beyond sale

Warranties/instructions for life of product

 

7 Years

Accident Reports and claims

Charitable donation letters and proof of payment

Documents used for tax return deductions

Medical bills (if tax related)

Other tax deductable invoices and proof of payment

Sales receipts

Wage garnishments

 

4 years

bank statements and cancelled checks

credit card statements

expired insurance policies

medical bills (in case of insurance disputes)

utility records

 

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