Never shred irreplaceable original documents, including birth/death/marriage certificates, Social Security cards, passports, wills, and adoption papers. Additionally, keep property deeds, vehicle titles, active mortgage/loan documents, and tax returns for at least seven years to avoid issues with audits or proof of ownership.
9 Paper Documents You Should Keep Forever in Their Original Form
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.
Documents You Should Never Shred
You need to keep tax-related documents, bank/credit card statements, payroll records, sales records, and investment purchase/sale slips for 7 years to cover potential IRS audits, while records supporting tax deductions (like receipts, bills) should also go with your tax returns for that period; however, tax returns themselves and certain long-term asset records might need to be kept permanently.
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.
Documents like bank statements, credit card offers, and tax records can be exploited if they fall into the wrong hands. Shredding ensures that your personal data is destroyed beyond recognition, reducing the risk of fraud.
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).
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.
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.
After paying credit card or utility bills, shred them immediately. Also, shred sales receipts, unless the items purchased have warranties. Sales and cash withdrawal receipts from ATM's, junk mail credit card offers. Also, remove and shred pharmacy labels before throwing away the empty prescription bottles.
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.
How long should I keep medical records? Hold on to medical bills for a year, unless there's an ongoing insurance dispute or you claim a tax deduction for medical expenses. Keep health insurance policies for as long as the insurance is active.
Suze Orman's four must-have legal documents for financial protection are a Will, a Revocable Living Trust, a Durable Power of Attorney for Healthcare, and a Durable Financial Power of Attorney, with an Advance Directive (like Five Wishes) often combined with the healthcare POA to specify medical wishes, ensuring your assets and care are handled according to your wishes, especially if incapacitated, and avoiding family conflict and costly probate.
Keep Forever
Here are five document types not to shred and are better to keep – especially with services that offer offsite media storage you can trust.
You should not put heavy-duty metal (binder clips, large staples, tools), electronics (hard drives, phones, CDs/DVDs, batteries), sticky/laminated items, clothing, food, or large amounts of cardboard/plastic in a paper shredder, as these can damage the blades, overheat the motor, or cause jams, fire, and safety hazards. Always check your shredder's manual, but generally avoid anything that isn't paper or small staples/clips.
Office shredders can handle up to 250 sheets per job and run for up to 25 minutes before requiring a cool down period. Ideal for offices with 1-5 users. Light-duty shredders can handle up to 50 sheets per document shredding job, and can run for up to 10 minutes before requiring a cool down period.
No, you should not use WD-40 on a paper shredder; it's not designed for that purpose and can gum up the blades, attract paper dust, and even pose a fire hazard due to its solvent content and quick evaporation, so always use manufacturer-recommended shredder oil or oiling sheets instead.
Without NAID Certified shredding methods, your documents could still be at risk using some of these other methods.
1) Shred them
Some banks or local businesses also offer shredding services if you don't have one handy. Another option would be to manually “shred” them by cutting them up with your scissors.
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.
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.
Any mail containing personal data, especially offers with barcodes or pre-approved credit cards, should always be shredded to protect your privacy.