Here's what we recommend. Keep medical bills until you have paid the bill in full. Hang on to them for an additional year, especially if you plan on deducting the expenses on your income tax return. After that period, you can shred them.
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.
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.
When you or someone you are caring for is seriously ill, it is recommended that you keep EOBs for five years after the illness or condition is alleviated. If you or the patient is claiming or has claimed a medical deduction, keep the explanation of benefits for seven years.
Medicare generally recommends that you keep notices for 1 to 3 years.
State Laws. State laws vary, but generally require insurance agents to keep copies of their customer's policies for 6–7 years. Since a nonprofit can't always count on having access to the insurance agent's files when needed, each nonprofit should also maintain copies of expired policies.
KEEP 3 TO 7 YEARS
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
Keep them as long as needed to help with tax preparation or fraud/dispute resolution. And maintain files securely for at least seven years if you've used your statements to support information you've included in your tax return.
Once you submit the return, shred those stubs and statements. After filing, go back 3 years to shred the old tax return forms, W-2s, 1099s, K-1s, canceled checks, receipts for charitable contributions, and other information used in past taxes.
According to the IRS, it generally audits returns filed within the past three years. But it usually doesn't go back more than the past six years. Either way, it can be a good idea to keep any credit card statements with proof of deductions for six years after you file your tax return.
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
You do not need to retain old bills. Current insurance policies for building and contents. Outdated policies should be discarded. Warranties, manuals and receipts for household appliances or guarantees for home improvements should also be retained.
How long must a bank keep canceled checks / check records / copies of checks? Generally, if a bank does not return canceled checks to its customers, it must either retain the canceled checks, or a copy or reproduction of the checks, for five years.
1. Keep essentials at about 50% of your pay. Things like bills, rent, groceries, and debt payments should make up about 50% of a gross (before taxes) paycheck. Remove this money from your primary account right away, so you know your needs will be covered.
Contact your lenders, loan servicers, and other creditors. If you can't make a payment now, need more time, or want to discuss payment options, contact your lenders to explain your situation, and check their websites to see if they have information that can help you.
A safe home for you and your family always comes first, so paying your rent or mortgage should always be your highest priority payment. Plus, you don't want to risk being evicted or having your home foreclosed by being late or continuously missing payments.
In general, 401k plan records must be kept for a period of not less than six years after the filing date of the IRS Form 5500 created from those records.
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.
Like your mortgage payment statements, you should keep any paperwork on your refinance for at least 3 years. Although, some professionals might recommend keeping it for at least 10 years.
There is no hard and fast rule for saving medical payment records. Certainly, they need to be kept while the medical services that are summarized on the forms are in the process of payment by Medicare and supplemental insurance policies. After that, it is your call.
Is it safe to throw away old bank statements, or do you need to shred them first? According to the Federal Trade Commission, you should shred documents containing sensitive information, including bank statements, to protect yourself from identity theft.