Just in case a bank or processing error shows up down the line that you might not be in the clear, make sure to hang onto any records of loans - this includes student loans, car loans, etc. You’ve paid it off, and you don’t want to have to pay it again. The IRS recommends that you “keep tax records for three years from the date you filed your original return or two years from the date you paid the tax, whichever is later.” If you file a claim for a loss from worthless securities or bad debt deduction, keep your tax records for seven years. If your bank provides online statements, you can switch to receiving your bank documents online and cut down on paper. You’ll need bank statements for up to three years if you are audited by the IRS. Once you receive the annual summaries, you can shred your monthly statements. These records help track your cost basis and the taxes you owe when you sell stocks or properties. Keep for three years, as you may need the documentation for the capital gains tax if you’re audited by the IRS. If you need them for tax deductions, keep for three years. Keep until you’ve confirmed the charges and have proof of payment. Keep for one year and then discard - unless you’re claiming a home office tax deduction, in which case you must keep them for three years. Keep paycheck stubs until the end of the year, and discard them after comparing to your W-2 and annual Social Security statements. If you take that deduction, you’ll need to keep the medical records for three years for tax records. 1, 2019, you may only deduct the amount of the total unreimbursed allowable medical care expenses for the year that exceed 10% of your adjusted gross income. Keep receipts for medical expenses for one year, as your insurance company may request proof of a doctor visit or other verification of medical claims. If you plan to sell the house, and you have made improvements to it, keep receipts for those improvements for seven years - you may need them to lower the taxable gain on the house when you sell it.
Hold these for at least three years after the due date of the tax return that includes the income or loss on the home when it’s sold. How long to keep: A minimum of three years, but as long as seven years. Try storing them in a file folder broken out based on spending categories. Receipts for anything you might itemize on your tax return should be kept for three years with your tax records. Here’s a guide of which financial documents to keep and for how long. You can go paperless and throw some of those financial documents away! Some of those papers you have collected need to be kept, but many others can be shredded and tossed. If you haven’t already opted to go paperless, you might be swimming in a flood of receipts, bills, pay stubs, tax forms and other financial documents.
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