Help with cleaning up my paperwork...

[ctc917]

So I have tried searching to see if anyone has the same problem I have when it comes to what to do with your paperwork? looking for any suggestions on how to clean up a mess load of papers/documents that I seem to have accumulated over the years, what should we always keep? or better yet what do you guys find very helpful to keep? on a yearly basis only? forever? What did you find was your best way of storing your paperwork? totes, boxes?Any suggestions would be helpful, I'm sinking under a boat load of paperwork....

thanks
ctc917

 

[Claire&TheBoys]

So I have tried searching to see if anyone has the same problem I have when it comes to what to do with your paperwork? looking for any suggestions on how to clean up a mess load of papers/documents that I seem to have accumulated over the years, what should we always keep? or better yet what do you guys find very helpful to keep? on a yearly basis only? forever? What did you find was your best way of storing your paperwork? totes, boxes?Any suggestions would be helpful, I'm sinking under a boat load of paperwork....

thanks
ctc917

I never throw away tax returns (but, I work for a CPA, so you can see why). I never throw away documents pertaining to the buying or selling of a home.

Other stuff, I keep about 5-7 years (the IRS can only go back 3 years in most cases and up to 7 if they suspect fraud). When it's time to dispose of stuff, I shred. Often in the Spring (around April 15), banks and credit unions will often have a "free shred" day where you can take a certain amount and have it shredded. I did that once when our shredder broke and I put off getting a new one and a year's worth of mess accumulated on me. You can also take stuff to Office Depot and they'll shred it for you for cents per pound, but that could be an expensive proposition if you have a lot of stuff. Another option is to burn it. Once my husband had a huge pile of receipts to go through and after he grilled dinner one night, he stood there and burned them in the grill. If you really have a lot, you can look into a shredding service like 1-800-Shred-it and see how much they'd charge to come one time to do it all.

Storage-wise, I keep like items in manila envelopes and two years of envelopes in cardboard bankers' boxes. They're stacked on the upper shelves of the guest room.

Right now, we have 18 years of Army paperwork in storage totes in our Florida room. When my husband retires next year, we're having a big bon-fire!

 

[tvguy]

Bills I keep in a 12 month folding file, and shred monthly, I just shredded July 2014 bills.
I had a fire proof safe for permanent papers, but the lock broke, so I have a fire proof strong box, and plastic tubs.
We learned a lot when my MIL passed away 15 years ago. My mom saw how much stuff we had to sort through and she went on a 1 year purge of unnecessary documents. Of course, my mom had EVERY canceled check dating back to 1950!!!

You just have to be careful what you get rid of, because there are some things you may need for a long time.
My mom kept my dad's Army discharge papers from 1944, which I needed in 2013 when she passed away, along with the divorce papers from my dad's first marriage from 1934, and my parents marriage certificate from 1950 along with his death certificate from 1967 so she could be buried with him in a National Cemetery. Yup, I needed to show an 80 year old document to the VA.
In my permanent file are my birth and marriage certificate, all my tax returns back to 1979, All the sales records for my house, title, the original mortgage and payoff proof, first refinance mortgage and payoff, second refinance mortgage and payoff, and receipts for all capitol improvements (we added on, and then did a top to bottom remodel last year).

 

[katibosch]

Bills and other paperwork get scanned into pdf and put on my computer, which has two redundant backups. The originals of pretty much everything except actual birth certificates, car titles, things like that, get shredded immediately.

 

[ctc917]

Thanks for the great information, anyone else want to share how they handle their paperwork?

 

[laughinplace199]

For storing paperwork, we use a file cabinet. It's important to always file your paperwork.

 

[BernardandMissBianca]

The best thing I have found is a file system called Freedom Filer. It keeps me so organized, my mom also bought one for herself and for my brother.

I know there are several lists posted on websites of what to toss and what to keep. I think my local bank has a list too.
I do know you have to keep documents on buying and selling homes for forever, my husbands DD-214 for military info enlistment papers and discharge papers are kept forever.

The freedom filer has 10 years for Tax returns. It's super easy, when the 2016 tax returns go in, the 2006 ones come out and get shredded.

 

[DisneyMandC]

For storing paperwork, we use a file cabinet. It's important to always file your paperwork. View attachment 110377

LOL that picture!! That cracked me up!

 

[kathy884]

File cabinets and manila folders are key for me too. When I run out of room I purge old things that I believe I will no longer have a need for. I had read too that seven years of tax returns should be more than sufficient. My tax guy indicated that I will probably now, though, will have a tough time showing the cost basis of non deductible IRAs that I did back in the 80s for several years that are on those tax returns. I should have talked to him before I did the purging and kept tax returns from those specific years. I may have cost myself some $s here -- Oops -- bums me out, but there is nothing I can do at this point.

For vacation / weekend get-a-way planning I like to buy one of those plastic folders with two pockets for every single weekend get-a-way or week long trip that I'm thinking about. In the pocket on the right I keep all solid reservation and show them from front to back in the order that I will use them. (airline, rental car, hotel, theatre tickets, tour tickets, second hotel, flight back, etc.) On the other side I keep information about destinations / activities that are of interest to me again in the order planned (tentative itinerary) -- Sometimes that includes google map driving or walking directions -- sure I'll probably use Siri, but I like to have the physical mini maps to kind of get my bearings. And behind that I keep information about things to do that sound kind of interesting that aren't on the itinerary that sort of serve as backup possibilities if we find we have extra free time in an area. I in the back too sometime have print outs of trip advisor posts of interest, restaurant reviews of interest. I just like having all the stuff in one place, but need to keep necessary and superfluous separate.

On my desk I usually have three piles, two that I work though once a week and one that I work through when I have time. The one has bills to record or pay, the second has non bill stuff that I need to act on and I keep those in deadline order, the third are things to file. Based on how busy I am I may only catch up on that once a month or so (It depends on how ugly my work life is -- I work in IT and unfortunately sometimes when I have tight project deadlines I end up doing some work on weekends and something has to give). I typically spend about three hours every weekend playing with my papers and files and keeping everything organized (includes updating spreadsheet with investment/budget info too).

 

[SuzanneSLO]

The best thing I have found is a file system called Freedom Filer. It keeps me so organized, my mom also bought one for herself and for my brother.

I know there are several lists posted on websites of what to toss and what to keep. I think my local bank has a list too.
I do know you have to keep documents on buying and selling homes for forever, my husbands DD-214 for military info enlistment papers and discharge papers are kept forever.

The freedom filer has 10 years for Tax returns. It's super easy, when the 2016 tax returns go in, the 2006 ones come out and get shredded.

Thanks for posting. I had never heard of that before, but watched the video and thought it had some really good features.

Even with organization, I still have lots of paper. And lots of that paper needs to be kept "forever", such as all medical expenses since 2009 when I opened up an HSA, from which I have yet to pull any funds. Also, I'm a big believer in keeping tax returns "forever" but those may be something I will digitize.

-- Suzanne

 

[ctc917]

Another question I have is, do you throw away or shred all your bills? and when do you do this? that month? a couple months later? and have you ever had any problems after you have throw out some paperwork and you thought I should of kept that? like what Kathy884 discussed? Also for those of you who have gone to electronic billing how has that worked out for you? do you usually keep copies of those on your PC or how does that usually work?

I really need some direction so I'm loving these suggestions so keep them coming...

thanks
ctc917

 

[barkley]

all of our vital documents are kept in a safety deposit box at the bank-birth/wedding certificates, passports, ss cards, titles to vehicles, copies of insurance policies (if you are ever emergency evacuated from your home as we once were-you want access to copies of your policies)....

I have file cabinet that has folders that are broken down by type-household appliances, electronics, vehicles, etc. in each folder there's an envelope with the pertinent info on individual items (warranty info, serial and model number)-the receipts for these end up in the safety deposit box b/c we have replacement value coverage on our homeowners so I want to be able, if the need arises to substantiate the quality/manufacturer when seeking replacement. I keep current (last few years of tax returns) in the cabinet-prior years I put in banker boxes in another area. I've kept all the documents for the 3 homes we've owned 'just in case' AND in the event we ever end up on one of those 'unclaimed property/money' state lists (we couldn't claim some $ for my late mom b/c the asset wasn't cross referenced with her social security number and we had no documentation that she ever lived at the last known address the company that turned the funds over to the state had on file). as far as bills go-if they are something that documents a purchase I may need to reference for insurance or taxes I keep them in those files. also-since American Express extends warranties on some items I retain those bills until that extended period expires. all instructional books and materials for kitchen appliances are in a folder that's filed with my cookbooks, anything else (like vehicles, yard equipment, electronics....) are in marked (by type) large zip lock bags in a plastic bin in the garage so they are easily accessible (I go through this about once a year and toss anything we no longer own-if we get rid of something to goodwill or such I include the documentation with the donation).

I'm with tvguy on making sure to keep vital docs on parents-you never know if you may need them (and I have file boxes w/all the info from administering their estates). we've got bc's, death certificates, ss cards, wedding certificates, military docs....all safely stored away just in case it's ever needed.

since we have a disabled child we also keep a wealth of school and medical records b/c as these kids age up to where they need services it's not uncommon for public and private agencies to require documentation that goes back decades to substantiate when a disability was first detected let alone diagnosed. I have a large ziplock bag on my bulletin board above my computer that I put any and every receipt that relates to dd's college expenses so that when tax time rolls around I've at least got that element at the ready.

lastly-dh and I love to read, and also watch movies. we have a large number of books we've collected as well as close to 1000 dvds, blue rays and vhs movies. my insurance agent and I were talking one day and she mentioned that in the event of major theft or damage to a home the most difficult thing for clients to remember and put together is a listing of things like books and movies. as a result we created a data base that lists our movies (with format), books, music (with format)-and separate lists for each kid's video games, gaming systems (and in dd's case-anime). we update it as items come in (they rarely go out).

 

[jsutherin1]

I received a Neat Desk for Christmas last year (asked for it specifically) and it is great! I scan everything in to my computer and then shred the originals. I also back up everything externally. It allows you scan docs receipts and business cards for contact info too.

 

[BernardandMissBianca]

Thanks for posting. I had never heard of that before, but watched the video and thought it had some really good features.

Even with organization, I still have lots of paper. And lots of that paper needs to be kept "forever", such as all medical expenses since 2009 when I opened up an HSA, from which I have yet to pull any funds. Also, I'm a big believer in keeping tax returns "forever" but those may be something I will digitize.

-- Suzanne

I found it to be useful as a starting point and I've gotten about 90% of my stuff under control. I still have a few things that don't have a home but that pile is a lot less now!

Another question I have is, do you throw away or shred all your bills? and when do you do this? that month? a couple months later? and have you ever had any problems after you have throw out some paperwork and you thought I should of kept that? like what Kathy884 discussed? Also for those of you who have gone to electronic billing how has that worked out for you? do you usually keep copies of those on your PC or how does that usually work?

I really need some direction so I'm loving these suggestions so keep them coming...

thanks
ctc917

When I swap out my freedom files I shred bills. They have 2 sections, odd year and even year. So this year my odd files are in the front and evens are in the back. When 2016 comes around I will move even to the front, pull the papers and shred those.

 

[crisi]

I shred bills now immediately - everything is available online. I keep tax documents, and things that I couldn't get online (like charitable donation receipts). The IRS doesn't care about your water bill. The stuff I keep is very small.

 

[barkley]

I shred bills now immediately - everything is available online. I keep tax documents, and things that I couldn't get online (like charitable donation receipts). The IRS doesn't care about your water bill. The stuff I keep is very small.

if this is your practice just make sure you are aware of every vendor's historical records practice. some keep records that they will provide to customers for years on end-others may only retain 6 months to a year of detailed statements (or retain longer but will not provide copies to customers). while something like a water bill might not seem like something the irs would care about, if a person is in the position of having a home based business or office wherein they are able to write off a percentage of their utilities then water, power, sewage, garbage and other bills may absolutely be necessary to retain with tax records (and depending on the utility company it may be impossible to get copies a few years down the line if an audit occurs-ours will only provide for the calendar year dating back from the date of request).


the other issue with reliance on online records-while we don't like to think about it, if someone else has to handle things for you in case of incapacity or (god forbid) death-unless they have all your vendor names, account numbers, passwords and in some cases written permission extending beyond your death to access records it can be a horrendous nightmare. we were in this situation with 2 family members. one was 'old school'-kept receipts, paid via checking account (with a written record). the other did the bulk on-line with auto payments and received electronic statements. with the 'old school' it was relatively easy to take care of affairs while they were ill, and deal with taxes upon death. with the other we had no passwords to the e-mail let alone the accounts so we couldn't figure out the finances which meant upon their death we were left trying to figure out who they owed what to, and how to do their taxes (also did on-line filing-which we had no records to refer to).

for dh and I it's become a matter of retaining the minimum amount of records we need for our purposes while keeping in mind what our family would need to conduct affairs on our behalf.

 

[Shelly F - Ohio]

I place my paperwork in a basket and every 3 months pull out my rubber finger and set up shop on the dinning room table and begin sorting.
I used Excel and typed up labels using the "show grid" feature, for all my papers ie: Utility Bills, Credit Card Statements, Insurance, Medical Bills, Medical EOB ect. Printed it off and cut out the labels to slide in a hanging file folder label holders. I only had to create the labels once and have been using them over and over. I put the folders in a plastic file tote box. Every two years I go through and purge what I don't need to keep. Our city has a local shred day twice a year.

Remember when storing things in a fire box almost all at-home safes are only water resistant, not waterproof, so a fire hose putting out a house fire can still damage the contents. Its best to place those precious birth certs, passports, social security cards ect. in a ziplock bag when using a in home safe.

 

[crisi]

if this is your practice just make sure you are aware of every vendor's historical records practice. some keep records that they will provide to customers for years on end-others may only retain 6 months to a year of detailed statements (or retain longer but will not provide copies to customers). while something like a water bill might not seem like something the irs would care about, if a person is in the position of having a home based business or office wherein they are able to write off a percentage of their utilities then water, power, sewage, garbage and other bills may absolutely be necessary to retain with tax records (and depending on the utility company it may be impossible to get copies a few years down the line if an audit occurs-ours will only provide for the calendar year dating back from the date of request).

Since we don't write off anything house related for the business, utility bills aren't tax records. Once they are paid, I don't need them.

 

[morgan98]

I am a CPA and I keep tax returns and related documentation. Right now I have about 10 years worth. We also have the documents from buying and selling a home. Of course we also keep our birth certificates, passports, marriage license, divorce settlements (second marriage for us both), but that is it.

I have learned to become a minimalist about all other paper really. I get almost all bills online and can find them online. I also pay them online. Never is all of my years of being an adult and living on my own, have I needed a copy of the electric bill from 8 months ago.

I don't even keep paper copies of monthly bank statements, but I do keep year end summaries of all accounts with the tax returns.

 

[crisi]

I don't even keep paper copies of monthly bank statements, but I do keep year end summaries of all accounts with the tax returns.

I wanted to point out paper....

As a accountant (by training and long ago) and an IT professional - keep paper copies. By the time the IRS gets around to wanting your five year old records, you may have kept them on a computer that died, or have them in software that is no longer made and isn't compatible. Alternatively, keep backups, and keep all your documentation in standard forms, like a PDF. You probably don't need to hang onto much (if you are writing off 1/10th of your water bill because you have a home office, you'll need to hang onto the water bill, but if the water bill is paid and done and doesn't show up on your taxes, you don't need it), what you do hang onto needs to be accessible.

I end up with one inch wide hanging file each year of tax returns and associated documentation and bank and brokerage year end statements. And I almost never touch those files again.