There are certain financial records that don’t belong in the shredder, according to Kiplinger.
The IRS has three years to audit a tax return after the filing deadline. Any supporting documents such as credit-card statements, canceled checks, receipts to show deductions, proof of charities donations, mortgage interest or capital gains paperwork can be shredded.
The records listed above should be kept for three years. After that, it’s not necessary.
Tax returns, however, should be kept forever. The returns can be used to show information when applying for a mortgage or getting disability insurance. The paper form isn’t necessary if you keep a digital copy to cut down on the space it takes.
Stock and mutual fund purchase records, Form 8606, which reports nondeductible IRA contributions, and home-purchase and improvement documents should be kept more than three years. Records that show home improvements should be kept until three years after the home sells.
Documents like brokerage statements, credit-card receipts and pay stubs can be shredded as soon as you log them, check the costs with your monthly billing statements, or use them to report business expenses for tax purposes.
- 4 reasons why you shouldn't shop on Black Friday
- Why Utahns are some of the biggest spenders,...
- The best Black Friday deals of 2014
- Can a cash grocery budget save you money?
- Our complete guide to Black Friday, Cyber...
- Immigration reform will boost the economy,...
- Working on Thanksgiving Day? Here's why most...
- 5 things homebuyers should be thankful for...
- Working on Thanksgiving Day? Here's why... 12
- Why Utahns are some of the biggest... 12
- In our opinion: Fear, intentions can... 7
- Immigration reform will boost the... 6
- Thanksgiving trumps Black Friday for deals 4
- Why Salt Lake City is one of the best... 2
- US stocks inch further into record... 1
- 3 Reasons holiday shoppers will spend... 1