Do You Know What To Keep?

Do You Know What To Keep? What "Personal" files should be retained for tax assessment and for how long?

These are popular questions we hear from people, especially business owners. We thought it might be good to give you a few suggestions:

Personal Documents To Keep For One Year

  • Bank Statements

  • Paycheck Stubs (reconcile with W-2)

  • Canceled checks

  • Monthly and quarterly mutual fund and retirement contribution statements (reconcile with year end statement)

Personal Documents To Keep For Three Years

  • Credit Card Statements

  • Medical Bills (in case of insurance disputes)

  • Utility Records

  • Expired Insurance Policies

Personal Documents To Keep For Six Years

  • Supporting Documents For Tax Returns

  • Accident Reports and Claims

  • Medical Bills (if tax-related)

  • Property Records / Improvement Receipts

  • Sales Receipts

  • Wage Garnishments

  • Other Tax-Related Bills

Personal Records To Keep Forever

  • CPA Audit Reports

  • Legal Records

  • Important Correspondence

  • Income Tax Returns

  • Income Tax Payment Checks

  • Investment Trade Confirmations

  • Retirement and Pension Records

"Special Circumstances"

  • Car Records (keep until the car is sold)

  • Credit Card Receipts (keep with your credit card statement)

  • Insurance Policies (keep for the life of the policy)

  • Mortgages/Deeds/Leases (keep 6 years beyond the agreement)

  • Pay Stubs (keep until reconciled with your W-2)

  • Property Records/Improvement receipts (keep until property is sold)

  • Sales Receipts (keep for life of the warranty)

  • Stock and Bond Records (keep for 6 years beyond selling)

  • Warranties and Instructions (keep for the life of the product)

  • Other Bills (keep until payment is verified on the next bill)

  • Depreciation Schedules and Other Capital Asset Records (keep for 3 years after the tax life of the asset)

Using the information above should keep you in a good position when it is time to pull information together for yearly federal, state and city tax filing.

Continued Success To You!

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