Does the idea of finding particular documents or receipts send shivers down your spine? Does the thought of filing make you break out in hives? As this joyous time of year, also known as tax season, descends upon us, it’s tempting to go running for the hills. Unfortunately, we must all face our documents, or lack thereof, at some time. In fact, some office organization experts say that this is the perfect time to get a jump start on next year, so when you’re faced with finding documents, you’ll know exactly where to go. But for now, as you wade your way through stacks, file folders and bins full of forgotten paperwork, keep these guidelines in mind when it comes to knowing when to hold ‘em, and knowing when to …er….throw them out. According to experts, you should hang on to the following for one month, after which you should check them against your monthly bank statements: - Sales receipts for minor purchases, like shoes, clothing, groceries and household goods.
- Credit card receipts.
- Deposit and withdrawal slips.
You should hang onto the following for one year: - Stubs from your paychecks.
- Monthly statements for your credit cards, bank transactions, mutual funds, mortgage, retirement funds and other such investment information.
The following items should be filed for a total of six years: - Tax documents and returns, like W-2s, 1099s and other tax forms.
- Year-end credit card statements, brokerage and mutual fund summaries.
Keep indefinitely the following: - Tax returns.
- Major purchase receipts, like expensive electronics, vehicles, appliances and home décor.
- Real estate and residence records.
- Wills and trusts.
The following items should be kept in a safe-deposit box: - Birth and death certificates.
- Marriage licenses.
- Important religious documents, like certificates of baptism, etc.
- Professional licensure documents.
- Insurance policies.
Keep a list of the above information handy in order to help you label files, drawers and storage bins. It will also help you when deciding whether to keep or shred specific documents. If you tend to hang onto paperwork when you really don’t need to, this list should help you take action and clear out the clutter. |
