Utility bills should generally be kept for one year to verify payments and track usage for potential supplier switching, or for three years if they are used to support home office tax deductions. Once verified against bank statements or used for tax filing, they can be shredded to protect against identity theft.
- Credit card statements can be discarded once you review your statement unless there are tax-related expenses on them. - Utility bills should be saved until the following month's bill arrives showing that your prior payment was received. If you track utility usage over time, keep your bills for one to two years.
After paying credit card or utility bills, shred them immediately. Also, shred sales receipts, unless related to warranties, taxes, or insurance. After one year, shred bank statements, pay stubs, and medical bills (unless you have an unresolved insurance dispute).
To hold for a year or less (with some buts):
Monthly utility/cable/phone bills: Once you know the bill is correct, toss it. But if you deduct some of these costs on your tax return, you'll want to save them with your return (more on that in a moment).
Utility bills and phone bills can be shredded after you've paid them, unless they contain tax-deductible expenses.
You must keep records for 6 years from the end of the last company financial year they relate to, or longer if: they show a transaction that covers more than one of the company's accounting periods. the company has bought something that it expects to last more than 6 years, like equipment or machinery.
Even if they're old statements, they should be shredded. Your name, address, phone number, and bank account information are in those statements, along with your habits, purchases, and banking history. Even if the account is closed, shred it anyway.
Keep for a year or less – unless you are deducting an expense on your tax return:
General recommendation: Keep prescription receipts for at least 1-3 years after payment. For tax purposes, retain documents for at least 3 years; 6 years if income was underreported. Children's prescription records should be kept until they reach adulthood plus 2 years.
You generally don't need to keep 20-year-old tax returns; the standard IRS recommendation is to keep most tax records for 3 years, but 6 years if you significantly underreported income (25% or more), or even indefinitely if you never filed or filed fraudulently. For most people, keeping records for 3-7 years covers standard audits, but if those returns are from a time you bought/sold property or have complex investments (like worthless securities), you might need them longer, so consider shredding or securely disposing of anything older than 7 years unless it's for property records.
Keep Forever
Documents to keep forever
One of the main reasons to shred old utility bills is to prevent identity theft. Utility bills include personal information that can be used by scammers to open fraudulent accounts in your name. Shredding these documents ensures that no one can misuse your details.
The documents you file with your tax return or use to prepare it, including W-2 forms, 1099s, receipts and expense records, “can usually be tossed after seven years,” Gallegos said. In fact, most of us won't need the supporting documents for more than three years, Mendelsohn said.
Some people recommend keeping checkbook registers for at least 12 months in case “issues” (questions about payment) arise and because some checks may take a while to clear.
Here are five document types not to shred and are better to keep – especially with services that offer offsite media storage you can trust.
Based on the three-year rule, in late April 2025, you'll generally be able to discard most records associated with your 2021 return if you filed it by the April 2022 due date.
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.
Bank & Credit Card Statements
Old bank and credit card statements should be securely shredded once you have the necessary information – not doing so could leave you vulnerable to identity theft. Opt for paperless online statements where possible!
After visiting an ATM
Mark each transaction in your account record. Always save your ATM receipts. ATM receipts contain sensitive information. Don't leave them at the ATM.