How many years should one should one hold on to past records?

Question

I'm talking about tax returns, bank statements, credit card statements, pay check stubs, phone bills, insurance bills and all payments? Forever? Just 2 years? 5 years? Also - when you save these records do you just save the front page or all of them?

Thank you in advance for taking the time to answer this.

Answer 1

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Thanks and good luck.

Answer 2

You want to save all of your financial records at LEAST 3 years, which is the period of time that the IRS usually wants to see if you get audited. To be safe, keep your tax records 5-7 years, and that is ALL of your tax info! Works best to put all your tax info into seperate folders for each year. Keep Paycheck stubs until youv'e got your W2's for that job, dont really need your insurance bills, credit card statements, bank statements or payment slips for more than a few months, just for continuity and make sure they are not jacking you around. And as for just the front page of those just mentioned? Yeah, you'd be ok with just the first page as long as it has the important info on it (payment info, balance, etc) Hope this helps!!

Answer 3

3 years

Answer 4

As for tax records you are subject to a general IRS audit for three years back from the current tax year. In 2006 you will need all your 2005,2004,2003 records if audited. If you are “suspected” of tax fraud you are subject to audit forever. You are required by most states to keep "business records” for 7 years. If you had any Schedule C activity your tax returns are for sure a business record. Retaining your W-2 forms to confirm your Social Security Benefits when you begin to collect is always advisable. There are other legal matters that can arise that it would be to your advantage to produce your tax records. I currently have a situation involving thousands of dollars, which will require 15-year-old tax records, be produced to make a legal point. That case has nothing to do with the IRS but those records are the best evidence available (who would ever lie to the IRS) to prove a given issue. The best answer is to keep income tax records until three years after you are dead because of estate taxes and all of the other legal matters in which they can be helpful. I would take a deduction for the cost of the file cabinet necessary to do so if you only use it for tax records. Other type of records depends on the nature of the record. Any realestate stuff I would keep forever. Most of the rest I would keep for seven years.

Answer 5

I'm over 40 and my rule of thumb has been 5 years. I save all pertinant pages-anything with numbers and figures on them. Statements and checks. The IRS has gone back as far as 7 but has been forgiving at 5.

Answer 6

Lord, I can't tell you legally, but I CAN tell you my mom felt that 60 yrs. worth was about right!! (LOL) She passed away a little over a year ago and it took my brother and I months to sort through everything!! I usually keep important papers (statements, etc) for at least 5 years. As an over the road truck driver, I am pretty particular....As long as you have the room and storage space, I'd keep important paperwork (in its entirety) for as long as possible!! Good Question

Answer 7

Seven for tax stuff I think just 5 for regular bills, bank stmts, somethings you keep forever. If you are going to throw anything away be sure to shred it first.

Answer 8

I keep my records for 5 years.