How Long Should original documents be kept?

Most lawyers, accountants and bookkeeping services recommend keeping original documents for at least seven years. As a rule of thumb, seven years is sufficient time for defending tax audits, lawsuits and potential claims.

What documents need to be kept for 7 years?

Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return. Keep records indefinitely if you do not file a return.

How long do you have to keep original documents?

While required retention periods of no more than three years are most common, California law imposes requirements of as long as eight years for certain employment records and six years for certain tax and corporate records.

What records must be kept for 10 years?

Legal Documents

For example, documents such as bills of sale, permits, licenses, contracts, deeds and titles, mortgages, and stock and bond records should be kept permanently. However, canceled leases and notes receivable can be kept for 10 years after cancellation.

What documents should you keep permanently?

Examples are things like your birth certificate, marriage certificate, Social Security cards, retirement accounts, life insurance documents, will and powers of attorney. You need to keep all of these things—forever.

Know How Long To Keep Financial Documents

What 5 documents should you always destroy?

When should you destroy documents?

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).

What papers to save and what to throw away?

Active Contracts, Insurance Documents, Property Records or Stock Certificates. How long to keep: Until they are no longer active. Keep all these items while they're active. After contracts are completed or insurance policies expire, you can discard these documents.

How long should I keep utility bills?

Utility Bills: Hold on to them for a maximum of one year. Tax Returns and Tax Receipts: Just like tax-related credit card statements, keep these on file for at least three years. House and Car Insurance Policies: Shred the old ones when you receive new policies.

Should you keep tax returns forever?

In most cases, you should plan on keeping tax returns along with any supporting documents for a period of at least three years following the date you filed or the due date of your tax return, whichever is later.

How long should you keep bills before shredding?

While household bills and bank statements should be kept for at least two years, and insurance documents as long as they are valid.

What documents do you need to keep originals?

What is original document rule?

The Original Document Rule provides: “When the subject of inquiry is the contents of a document, writing, recording, photograph or other record, no evidence is admissible other than the original document itself xx x.”

How long should a person keep documents?

Bills and invoices can really pile up quickly in the workplace, but if you keep them well organized, holding onto them for up to six years should be sufficient. For any large purchases, you may want to consider storing the bills permanently in case you need proof of purchase for insurance purposes.

What do you do with the documents that are no longer needed?

Destroy paper documents permanently and securely

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.

Do you need to keep old Social Security statements?

NOTE: A payee must save records for at least two years plus the current year and make them available to SSA upon request.

Do I need to keep old gas bills?

Monthly utility/cable/phone bills: Once you know the bill is correct, toss it. But if you deduct some of these costs on your tax return, you'll want to save them with your return (more on that in a moment). Credit card statements: If you know all the charges are correct, you probably don't need to keep this.

What personal documents should you keep and for how long?

To be on the safe side, McBride says to keep all tax records for at least seven years. Keep forever. Records such as birth and death certificates, marriage licenses, divorce decrees, Social Security cards, and military discharge papers should be kept indefinitely.

How long do you have to keep credit union statements?

So, to be safe, tuck away your tax records, as well as supporting receipts, documents, and worksheets, for at least seven years. How does an IRA work? We'll take you through the basics.

How do you destroy important papers without shredding?

You can pulp your documents by allowing them to soak in a water and bleach mixture for about 24 hours. Then, after they have been thoroughly soaked, you can use a hand blender to pulp the documents so that none of your personal information is identifiable. Cutting or shredding by hand.

How do you destroy important papers at home?

Do I need to keep bank statements for 7 years?

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.

Should you shred anything with your name and address?

Don't just toss the junk mail in the trash bin; shred it. Given merely your name, address and a credit offer, someone malicious could take out a line of credit in your name and spend money, leaving you on the hook.

Should I destroy my old Social Security card?

Q. What documents should I shred? A. Start by shredding junk mail and old papers that carry your Social Security number (but don't destroy your Social Security card), birth date, signature, account numbers, passwords or PINs.

What documents should not be shredded?