Is your home a pack
rat’s paradise? You’re not alone. As you start spring cleaning, are you
wondering what to keep and what to shred? We’ve looked at experts’ advice and
compiled this summary of how long they recommend keeping certain documents.
Save forever
Keep documents
related to major life events – birth, marriage, divorce, and death. Lock
securely:
·
Birth certificates or adoption papers
·
Social Security cards
·
Citizenship papers or passports
·
Marriage or divorce decrees
·
Death certificates of family members
Also, keep auto
titles and home deeds stored safely for as long as you own the property.
Tax records
This time of year,
the big question is: what tax records can you shred, and when can you shred
them?
·
Tax returns – Our conservative advice? It’s
best to keep these forever.
·
Pay stubs – Shred ’em after checking them against
your W-2.
·
Home improvement receipts – Keep these receipts
until you sell your home, since certain expenses may reduce your capital gains
tax.
·
Other tax records – like tax-related receipts
and cancelled checks – Wait seven years before shredding. Why? While
the IRS usually has three years to audit you, it has up to seven years under
certain circumstances. (If you file a fraudulent return, then the IRS can audit
at any time – but for the average honest taxpayer, seven years works.)
If you’re unsure what tax records to keep, consult an accountant
or call IRS Taxpayer Assistance at 800-829-1040.
Other records
Most experts suggest
that you can shred many other documents sooner than seven years. 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).
For those who are
thinking, maybe I should keep everything, just in case. . . remember that
identity thieves can’t find documents you have destroyed. Destroying documents
with your personal information reduces the likelihood of becoming an identity
theft victim.
Shredding is just one way to reduce the risk of identity theft.
For other tips on preventing identity theft, visit ftc.gov/idtheft.
No comments:
Post a Comment