Your Financial Records: What to Toss and When

I have long been confused about what financial records are necessary to keep and for how long; have you?

I did some exploration and found some hints from the FDIC in their FDIC Consumer News. I found this information very helpful. I decided to put it in a graph in case you want to print it and keep it handy in your desk. It may be time to start cleaning!! Here are a few categories to get you started!

Remember that no one can tell you when to throw away financial documents. It is important that federal tax rules require you to have receipts and other records that support items on a return for as long as the IRS can assess you additional tax.

Record With Income Tax Significance With No Tax Significance Related Topics
Records to Document Your Income Tax Submission Seven Years.
Remember that the IRS can contact you at any time if they suspect fraud.
Credit Card Statements 7 years 1 year  
Bank Account Statements 7 years 1 year  
Canceled Check 7 years If not needed to show you have paid a bill or debt, destroy after your have verified that your bank statement is correct. Keep indefinitely any canceled check and receipts to document the home purchase or sale, renovations or other improvements to a property. Once a home has been sold and several years have passed, checks related to renovation or improvement can be destroyed.

Please be cautious and shred anything with your Social Security number, bank account number or other personal information. Protect yourself from identity theft.

For additional information, ask your accountant, attorney or another trusted advisor.


Posted: October 3, 2014

Category: Money Matters, Work & Life
Tags: Bank Account, FDIC, Financial, Financial Records, Identity Theft, Income Tax, IRS, Tax, Taxes

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