If you prefer to keep years of physical testimony in your records, you`ll need space for that. Here are some tips for keeping paper records: If you`re like many of us, the amount of paper that goes into your home is sometimes difficult to manage. From mail to receipts to documents, organizing everything is a challenge. While many businesses are turning to paperless systems, that`s not the case when you look at the piles of financial papers in your home. Many banks and credit card issuers now offer electronic bank statements, so you may not need hard copies on hand, reducing excessive clutter. If you`re worried about keeping other documents longer, you can scan them into electronic copies and then dispose of the original paper documents. One way to store and track your bank statements can make it easier to access information when and when you need it. Note: The terms “bank” and “banks” used in these responses generally refer to domestic banks, federal savings associations, and federal branches or agencies of foreign banking agencies regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information on HelpWithMyBank.gov should not be construed as legal advice or legal advice from the OCC. Dixon says people often make the mistake of not keeping financial records. Whether you receive bank statements online or paper statements, Dixon says you want to make sure you keep them and keep them properly.
If you made a purchase with your debit card or set up online bill payment through your bank account, your bank statement may contain relevant receipt or billing details. Lockers were a popular method of storing valuables, including important documents. Not all bank branches offer safes today, but this may be an option if you prefer to keep these documents off-site. Remember that you are at the mercy of the financial institution when you can access your locker. It`s best to stick to your tax returns for as long as possible. If you ever face a tax audit, you`ll have all the information you need. You should also consider storing documents that verify information on your returns for at least seven years, such as W-2 and 1099 forms, receipts, and payments. If you have receipts for assets, such as receipts for renovation projects, keep them for as long as you own them.
In most cases, the answer to the number of years of tax returns you should keep is at least three years. You must keep all supporting tax records for 3 to 7 years from the date you file your tax return or the due date of your tax return, whichever is later. If your account is online, records are archived online or are available by special order from the bank or financial institution. American Express, for example, keeps three years of online and searchable account transactions. Chase Bank users can access seven years of account activity. It is best to destroy all documents that contain confidential information before throwing them away. Invest in a shredder for your home or use a professional shredding service. You`ll likely pay a fee for this service, but it`s a small price to pay to protect your personal information.
If you want to switch to less paper, there are plenty of digital storage options. Some documents don`t need to take up valuable space in your home for very long. For example, don`t worry about keeping receipts unless they`re for the following: This list is a handy indication of how long you should keep tax returns, but you should always try to get free tax advice just to be on the safe side. Stop worrying about how long bank statements and other important documents are kept. Here`s a guide to help you decide what to do. Using cloud-based storage not only saves space, but can also be ideal for the organization and security of your documents, as most services provide protection over encrypted networks. Many cloud-based solutions allow access via mobile devices, so your documents are accessible almost anywhere in the world.