Are piles of papers taking over your home? Do you wonder what to keep and what to shred? Well, here is your answer.
Keep for 1 month your deposit and withdrawal slips (after balancing against your monthly statement) and your paid bills that you are not claiming as a deduction or getting a reimbursement for (shred after balancing against your last bill paid).
Keep for 3 Months your minor purchase receipts (i.e. clothing), stores typically have a 90-day or less return policy.
Keep for 1 Year your paycheck stubs and your monthly statements for your credit cards, bank accounts, brokerage accounts, mutual funds and retirement accounts.
Keep for 7 Years your W2s, 1099's and other "back-up" of your tax return including donation receipts and proof of personal and business deductions and your year end statements for bank accounts, credit cards, brokerage, mutual funds and retirement accounts.
Keep indefinitely your tax returns, major purchases receipts for items such as appliances (keep for the life of the appliance), real estate residence records, wills, trusts, adoption, divorce and marriage certificates.
You can shred these items...
Utility Bills - after you verify that your last payment was applied correctly you can shred the previous bill (keep the current one) unless you are writing the bill off on your taxes or being reimbursed. If not, shred them!
Monthly Statements and Paycheck Stubs - keep for one year then shred. Keep your year-end statements for 7 years along with your tax returns. Keep your tax returns indefinitely.
Checkbook carbon copies - typically you only need to keep these if you are using them as receipts for items you are deducting from your taxes or getting a reimbursement. If possible, keep the actual receipt. If the carbon copy is your only proof of purchase, put in with that year's tax return and shred the rest.
Shred everything containing your personal information. The Better Business Bureau estimates 68% of identity theft happens as a result of paper documents stolen from trash bins and recycling bins. You absolutely need to have a personal paper shredder in your home that is cross cut.
What to do with your Shredded Paper
One idea is to bring it to your local humane society. They make cozy animal beds out of it. You can also use it to pack and ship items. Or, simply toss it into your recycling bin.
May this be your best and most organized year yet!
Keep for 1 month your deposit and withdrawal slips (after balancing against your monthly statement) and your paid bills that you are not claiming as a deduction or getting a reimbursement for (shred after balancing against your last bill paid).
Keep for 3 Months your minor purchase receipts (i.e. clothing), stores typically have a 90-day or less return policy.
Keep for 1 Year your paycheck stubs and your monthly statements for your credit cards, bank accounts, brokerage accounts, mutual funds and retirement accounts.
Keep for 7 Years your W2s, 1099's and other "back-up" of your tax return including donation receipts and proof of personal and business deductions and your year end statements for bank accounts, credit cards, brokerage, mutual funds and retirement accounts.
Keep indefinitely your tax returns, major purchases receipts for items such as appliances (keep for the life of the appliance), real estate residence records, wills, trusts, adoption, divorce and marriage certificates.
You can shred these items...
Utility Bills - after you verify that your last payment was applied correctly you can shred the previous bill (keep the current one) unless you are writing the bill off on your taxes or being reimbursed. If not, shred them!
Monthly Statements and Paycheck Stubs - keep for one year then shred. Keep your year-end statements for 7 years along with your tax returns. Keep your tax returns indefinitely.
Checkbook carbon copies - typically you only need to keep these if you are using them as receipts for items you are deducting from your taxes or getting a reimbursement. If possible, keep the actual receipt. If the carbon copy is your only proof of purchase, put in with that year's tax return and shred the rest.
Shred everything containing your personal information. The Better Business Bureau estimates 68% of identity theft happens as a result of paper documents stolen from trash bins and recycling bins. You absolutely need to have a personal paper shredder in your home that is cross cut.
What to do with your Shredded Paper
One idea is to bring it to your local humane society. They make cozy animal beds out of it. You can also use it to pack and ship items. Or, simply toss it into your recycling bin.
May this be your best and most organized year yet!