Keep It or Toss It?

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Keep It or Toss It? It can be a struggle to know what to hold onto and what you can get rid of when it comes to financial records. Here’s a quick guide:

ITEM OK TO TOSS

Old bills (phone, utility) Grocery store receipts ATM receipts

WHY? Bills and receipts can be tossed once you have paid them and compared them with credit card and bank statements. It is common to be overcharged at the Grocery store– check receipts carefully and return to the store to have incorrect prices adjusted. Toss Receipts tossed once reconciled.

KEEP FOR A YEAR

Store receipts —unless you need them for tax, insurance, or warranty purposes (which you should then keep for as long as you need them)

Certain items (medical/dental bills, donations, work expenses, childcare expenses, etc.) should be kept for up to a year to check against year-end statements and for tax filing Pay stubs—to match up with the Form W-2 your employer sends purposes, in case you need to itemize deductions.

KEEP FOR 7 YEARS

Bank and credit card statements that include tax-deductible The Internal Revenue Service (IRS) can audit charitable donations, tuition costs, business or medical expenses your records for up to seven years after filing. Having records on hand will save you a lot of Any records needed for tax deduction purposes that are not time and frustration in the event of an audit. already included on bank and credit card statements

KEEP UNITL NOT NEEDED / EXPIRED

         

KEEP FOREVER

             

Warranties until expired Loan documents until loans are paid in full Insurance policies until expired/outstanding issues are resolved Receipts, including model/serial numbers, for major purchases (cars, equipment, appliances) Animal registration and immunizations Reports and insurance claims for theft or accidents Title to your car(s) Receipts for major items you have sold Lease agreements and membership contracts Credit card and bank account agreements

Some records need to be retained for an undefined amount of time, from a year for a short-term warranty to several years for documentation of loans you’re still paying off.

Documents that are hard to replace should be Birth certificate stored in a secure fireproof box or safe deEducational records: transcripts, diplomas posit box. Employment records, including military papers Adoption papers Citizenship documents Marriage certificate (and divorce, alimony, custody agreements) Important health records such as immunizations Passport Social Security card Year-end pay stubs and bonus statements Records of contributions to retirement accounts Change of name legalization papers Stock and bond certificates Mortgage, home deed and improvement records


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