What should I do with old bank and credit card statements...?

Question

I have a box of old bank statements from a banks I don't even use anymore (closed the accounts). They are a couple years old and just sitting around. I also have all my old pay stubs from old jobs from years ago. Can I throw these out or should I keep them if something goes wrong with my taxes and I somehow get audited.

I'm 20 years old and these statements and stubs go back to when I was 16 years old.

Answer 1

I keep mine for 7 years. It is extremely unlikely that you will have a tax audit (or something) that goes back more than 7 years. I just throw my stuff in a shoebox with the year written on one end, and each year I shred the oldest box.

Of course, you can keep it for longer than that if it makes you feel more comfortable! But I also think it is unlikely that you will get audited for what I'm assuming is the minimal amount you earned when you were 16.

Answer 2

Pay stubs -- keep this years till you get your W-2 for the year. Trash the rest.

Bank statements -- If they're more than 7 years old, trash them. You might keep the final statement on that closed account, just in case. If you get back the cancelled checks, go thru and keep any significant ones -- like final payment.

Answer 3

Shred them if they are more than a couple of years old. When you get older you will have to hold on to records for stock and home purchases for a much longer time frame. However for information that would only be needed for an income tax audit a couple of years should be sufficient.

Answer 4

The tax authorities advise that you keep them for at least 6 years. But they have the right to go further back if they wish.