Utility bills should generally be kept for one year or until the next month's bill confirms payment, after which they can be shredded. If the bills are used to support tax deductions (e.g., home office expenses), keep them for three years. You can shred them immediately if you have confirmed payment online.
- 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.
Other records
After paying credit card or utility bills, shred them immediately. Also, shred sales receipts, unless related to warranties, taxes, or insurance.
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).
Keep for a year or less – unless you are deducting an expense on your tax return:
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.
What to keep for 1 year
Here are some materials you should not put in your office shredder.
Documents You Should Never Shred
The 7 year rule
No tax is due on any gifts you give if you live for 7 years after giving them - unless the gift is part of a trust. This is known as the 7 year rule.
Documents that define your personal and financial life—like your birth certificate, marriage license and tax returns—should be kept forever. Hold on to records that support information on your tax returns for seven years. Digitizing and shredding your paper documents can cut the risk of fraud and identity theft.
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.
Here are a few of the most common mistakes: Using Office Shredders That Jam or Overheat – Small shredders may seem sufficient, but they often can't handle high volumes and can become a burden for staff. Storing Documents Too Long – Old files that are no longer needed should be securely destroyed.
Keep for 30 Days or Less
Utility bills and phone bills can be shredded after you've paid them, unless they contain tax-deductible expenses.
Here are five document types not to shred and are better to keep – especially with services that offer offsite media storage you can trust.
The best way to properly dispose of documents that contain your personal information is to shred them before discarding them.