Whether you keep hard copies or use a digital solution for your important documents, it’s easy to end up with a mountain of paperwork, statements, and forms. While some items such as your will or a Social Security card seem like obvious contenders in the “keep forever” pile, it can be much harder to determine how long you need to hang on to credit card statements and medical bills.
In a nutshell, you don’t need to keep as many documents as you might have imagined.
If you have items you’re deducting on your tax return, such as medical expenses, purchases, utility bills, and other expenditures, you’ll want to hang on to those important papers.
Luckily, there is a lot of good information out there to help guide you in managing all your documents that come into your life. Here are some ideas from Consumer Reports to get you started:
Important Papers to Keep Checklist
Keep for a year or less – unless you are deducting an expense on your tax return:
- Monthly utility/cable/phone bills: Discard these once you know everything is correct.
- Credit card statements: Just like your monthly bills, you can discard these once you know everything is correct.
- Medical bills: These can be discarded once you know your insurance has paid the claim.
- Bank statements: Once you know your monthly statement is correct, you can toss the statement at the end of the year.
- Pay stubs: These can go after you reconcile them with your W-2 for the year. A lender may want to see a few months’ worth if you are planning to apply for a mortgage or loan. This also applies if you will be applying for grants or initiating any plans where proof of income will be important.
FAQs
KEEP 1 YEAR
Keep either a digital or hard copy of your monthly bank and credit card statements for the last year. It's a good idea to keep your digital copies stored online if you choose to go paperless.
How long should you keep important documents? ›
You also should consider saving documents that verify the information on your returns for at least seven years, like W-2 and 1099 forms, receipts and payments. If you have receipts related to assets, like receipts for home remodeling projects, keep these for as long as you are the owner.
How long should you keep documents relating to investments? ›
Bank and investment statements should be retained for at least seven years. This timeframe helps in managing taxes, tracking the progress of investments, and resolving disputes.
How many years of financial records should I keep? ›
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
Should I keep old utility bills? ›
Utility and phone bills: Shred them after you've paid them, unless they contain tax-deductible expenses. IRA Contributions: Until you withdraw the money. You can shred quarterly statements as soon as you match them with your yearly statement. Home Purchase/Sale/Improvements: Until six years after you sell.
What papers to keep and what to throw away? ›
Follow these guidelines:
- Income tax returns: Most IRS audits involve returns filed within the past three years. ...
- Car title: Keep the title until you sell the vehicle.
- Records of selling a house: Keep the documents for three years after selling.
Keep for a year or less – unless you are deducting an expense on your tax return: Monthly utility/cable/phone bills: Discard these once you know everything is correct. Credit card statements: Just like your monthly bills, you can discard these once you know everything is correct.
How long should you keep credit card bills? ›
Credit Card Statements: Keep them for 60 days unless they include tax-related expenses. In these cases, keep them for at least three years. Pay Stubs: Match them to your W-2 once a year and then shred them. Utility Bills: Hold on to them for a maximum of one year.
What records should be kept for 7 years? ›
To be on the safe side, McBride says to keep all tax records for at least seven years. Keep forever. Records such as birth and death certificates, marriage licenses, divorce decrees, Social Security cards, and military discharge papers should be kept indefinitely.
Can I throw away old credit card statements? ›
If you have a lot of financial documents to keep track of, you might wonder what you need to keep and what can be thrown away. In the case of credit card statements, it's usually wise to keep either paper copies or digital files for at least 60 days.
Most financial experts say you should keep your bank statements in either digital or hard copy for at least one year. Once they've been in the filing cabinet (or your computer hard drive) for one year, you can finally shred the paper or press the delete button.
How long should time keeping documents be kept? ›
In 2021, California passed SB 807 that amended California's Government Code section 12946 to require employers to maintain personnel files, among other records for at least four years.
How long to keep bills and paperwork? ›
Keep For One Year
A good rule of thumb is to keep your monthly statements for the current year, and then shred them once you've reconciled them with an annual statement. The exception is any statement needed for tax purposes – those get grouped into the “keep for seven years” category.
What important papers should I keep and for how long? ›
Major Documents and Financial Records (Keep Forever)
Both personal and business tax returns should be kept forever. Older tax returns can be safely stored away with your other major documents. But your recent tax filings should always be easily accessible for you to reference.
How long to keep 401k documents? ›
401(k) Document Retention Requirements
These records must be kept for at least six years after the filing date.
What business records should be kept for 7 years? ›
Employee files: Employee files should be kept for seven years after an employee is terminated, resigns or retires. These records will need to be kept for 10 years if the employee was injured at work or files a claim against the company. Accounting records: These records should be kept for a minimum of seven years.
How long do you have to keep budget records? ›
26-Budget Revision Retain at least two years from end of fiscal year affected. After two years, destroy after audit or four years, whichever occurs first.
How long should you keep cancelled checks? ›
"There are things that we should keep for seven years like tax returns, your deductions, records of things that you've sold mortgage documents, medical records. There's things you should just keep for one year - like bank statements, pay stubs, quarterly investment statements, canceled checks," Noceti said.
How to get 15 year old bank statement? ›
2 Ways to Get Old Bank Statements from a Closed Account
- Contact the Bank by Phone or Email. The first step is to contact your former bank directly via phone call or email. ...
- Visit the Bank Branch. You can also visit your old bank branch in person and make the request for your closed account statements.
