Cut back on paper piles

In preparation for a client appointment later this week, I came across this great info on how long to keep certain paperwork, bills, receipts, etc. I found it very helpful! I know I'm guilty of keeping things much longer than I need to...

What are the time limits for keeping old paperwork and files?

Here are some broad and fairly conservative guidelines that you may find helpful in managing your bills and financial records. Before making any decision on paperwork, however, you should definitely check with an accountant or financial advisor in your state to verify that this information is accurate, as sometimes legislation varies from state to state.

Toss out EACH MONTH:

• ATM, bank-deposit slips and credit card receipts after you have checked them against your bank or credit card statements.
• Receipts for minor purchases - unless there is a warranty or refund involved.

Toss out after ONE YEAR:

• Your monthly bank and credit-card statements (unless you require proof of deductions for taxation purposes).
• Monthly mortgage statements provided you receive a year-end summary of your account.
• Pay stubs after they are checked against your W-2 or 1099.
  

Toss out after SEVEN YEARS:

• Your W-2 and 1099 forms
• Cancelled checks and receipts or statements for mortgage interest, property taxes, deductible business expenses or other tax-deductible expenses.
  

Keep indefinitely:

• Annual tax returns
• Year-end summary statements from financial institutions.
• Receipts for the purchase of any investments you own.
• Receipts for home-improvement costs or major purchases that may be needed for insurance claims or similar.

It may be helpful to download one of the publications of the IRS about what paperwork to keep. Go to www.irs.gov and search for Publication No. 552 - that has much of the information you are seeking.

Good luck taming your piles and files!
-amy