How Long Should You Save Your Paperwork?

Question

Really, how long should you hang on to the follow?

Pay Stubs
Bank Statements
Credit Card Statements
E*Trade Statements
Receipts

I have ALL of my pay stubs dating back to 1998, I have probably 1.5 years back in bank statements, I think I have 1 yr + in credit card statements, all of my E*Trade statements, & tons & tons of receipts for tax purposes

Is all of this really necessary? Isn't there a limit of how many years/months you should hold onto this stuff?

Answer 1

Once you get your W-2 for the year and verify that it's correct, there's no need to save pay stubstub, but keep the W-2 for seven years.

Bank statements - 1 year is enough.

Credit card statements - keep until you get the next statement and have verified that it's correct.

e*trade or other broker statements - keep indefinitely if you still own anything that was bought on the statement, since you'll need the info when you sell. Otherwise keep 7 years.

receipts: if they are for tax-deductible items, business or personal, 7 yrs. If for improvements to your house, where you might need to have the info when you sell, keep until 7 yrs after you sell the house. Otherwise, no need to keep once you're sure you won't need to return the item.

Answer 2

Six years from when you file the return (not from the transaction date) is enough for most of the things you list.

Obviously, if you are disputing something or being audited, you need to keep the paperwork until the dispute or audit is resolved.

Paperwork related to purchasing something that you will later sell, such as stocks, bonds, houses, etc., should be saved until you file the Schedule D on which you report the income from the sale.

Answer 3

i think this is a question of if this is necessary but if it's useful or not.and i think the answer should be no,it's really unuseful to hold this for too long.of course if you wanna save the paper for money you can keep them till it's enoug to be sold to a paper collector and then make some tips.but i think that's unnecessary to you.in my opinion,only of the important receipt and invoice should be treasured for claim if someday there's something wrong.good luck for you and your paperwork.

Answer 4

Six years to be on the safe side.No one can sue you after that length of time