How long to keep: Three years. Receipts for anything you might itemize on your tax return should be kept for three years with your tax records. Try storing them in a file folder broken out based on spending categories.
Hold the returns and supporting documents for at least seven years. The IRS can randomly audit you three years after you file — or six years afterward if it thinks you skipped out on reporting your income by at least 25%.
Keep Copies
For your most important documents, experts advise keeping multiple copies. That may mean keeping one copy in your cloud storage and another on a hard drive. It could also mean keeping one copy in your electronic filing and one hard copy in a fireproof safe.
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.
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.
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.
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 Outdated policies should be discarded.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.
Key Takeaways
Most bank statements should be kept accessible in hard copy or electronic form for one year, after which they can be shredded. Anything tax-related such as proof of charitable donations should be kept for at least three years.
You should shred any mail you don't need to hang on to including bills, notices from the DMV, IRS, and Social Security Administration, etc. In fact, anything containing any personal information should go into the shredder if you don't need to save it. While this may seem a bit excessive, it isn't really.
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.
Shredding is a common way to destroy paper documents and is usually quick, easy and cost-effective. Many retailers sell shredders for use within your office or premises, enabling you to shred and dispose of the documents yourself.
Just take it into your local bank and ask them to replace it. As long as you have at least half of the bill left, most banks will gladly exchange it for you.
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.
As a general rule of thumb, tax returns, financial statements and accounting records should be retained for a minimum of six 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.
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.
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.
In general, you should keep pay stubs for up to a year, then it's considered safe to throw them away. Make sure you properly shred them so no one can get ahold of your old pay stubs and glean personal information you don't want public.
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.
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.