Keeping old CC statements, etc

[NYCDiane]

I am in the middle of doing a purging/cleaning and just got rid of a huge amount of old CC statements the like. The only ones I kept are the cable bills (as our cable company has a very bad habit of claiming people are past due or owe "x" when they've already paid), my electric bills, health insurance/doc stuff, and bank statements.

I also have a ton of my paystubs from work --- do I REALLY need these? I mean, if I need them for anything, I can always get them from HR.


Soooo, my question is, do you guys keep all your old statements? Or just the last one unti the next one arrives and you can compare?

I'm just so sick of the paper and clutter and am also thinking about going "paperless" with all my accounts. Has anyone here done that? What are your opinions on it?

Thanks!!

 

[DVC-Don]

I keep all statements for seven years. I only keep my W-2's for pay records.

 

[HeyIt'sMe]

Paycheck Stubs - I keep mine and DH's through the year in our tax file and then when we get our W-2s I shread the paycheck stubs (I do keep the final paycheck of the year to compare to the W-2s).

 

[mrsklamc]

I usually toss statements as soon as I get the next one. ...DH keeps stuff forever.

We got married a year or two before the phone tax credit...Guess who got a WHOLE LOT more than the standard credit because he had years of old phone bills?

BUT that's probably a rarity.

I agree with everyone else- it's fine to toss paystubs as soon as you confirm w/ your W2.

 

[pixiewings71]

We keep stuff for 3-4 years max. Every Jan/Feb we shred a bunch of stuff and then we burn it.

 

[hrh_disney_queen]

I keep things for a few months, then shred. If I want a copy, I can go online and print it for myself. I spent a good bit of one summer shredding bills that were 1-6 years old, and cancelled checks as far back as 1981! Our space in our house is a premium and I would rather risk having to obtain a particular copy, than to keep every one I have for years.

 

[Cheshire Figment]

I tell my clients that records retention is based on Income Tax Statutes of Limitations. For all if a return is filed before the April 15th due date, it is considered filed on April 15.

1 - For normal returns the statute is three years from date of filing.

2 - If a return is amended, the statute is the later of three years from the date of filing of the original return or two years from the date of filing of the Amended return.

3 - If fraud is involved, which is specifically the non-reporting of income equal to at least 25% of the income that was reported, then the return may be audited up to six years from date of filing.

I personally hold all of my statements and other stuff for the end of the year to use to prepare my own taxes. After I have done the taxes, I put all the supporting documentation in a couple of very large envelopes for three years and then get rid of the stuff.

I do keep, for historical purposes, copies of the actual tax returns. My stack goes back to the mid-70's and is only 2½ inches thick, so it does not take up much room.

The only real exception to this is records for the purchase of assets, such as a house or investments. In this instance I will keep the records until the related asset is sold or otherwise disposed of. Then it will become a tax record for the current year.

And, as I said, I will do this for both myself and all my tax clients.

Mike (CPA Retired but still doing taxes professionally)

 

[cm8]

we keep everything for 10 years and then have a heat warming party or a shred'em shing ding. I only do it because one time we had returned an old phone via fed ex and the company claimed they never received the phone 3 years later. Not only had they received and signed for it, but I had to provide the proof to them that they had it, I was able to dig out my fed ex receipt and delivery confirmation details that I had filed away. The account was credited and then the man told me that they never had any one keep documents that long and had I not had the proof, we would have owed them $405.00. I don't think that burden of proof should be on the customer after that many years. The company should have to prove that they did or did not receive the items before they can even bill you.

 

[Purseval]

According to Consumer Guru Clark Howard:

What records to keep:

* Tax returns, keep forever
* Tax return documentation, for seven years
* Contracts, forever
* Real estate records, forever
* Last pay stub of a job if you leave that job
* Last pay stub of the year until you reconcile it with your W-2
* All mortgage payment checks (statements), until mortgage is paid off
* All student loan payments, until loan is paid off
* Car loan payment stubs, until the car is paid off
* Cancelled checks, for 7 years
* Bank deposit slips, until you reconcile your statements
* Bank statements, until a calendar year; store with tax returns if they will be used to prove deductions
* Home improvement records, ownership period plus 7 years
* Investment records, shred monthly and quarterly statements as new ones arrive; hold on to annual statements until you sell the investments

What records to toss:
* Credit card statements that are more than three years old
* Past insurance statement
* Old utility bills, except the most recent one from your old address if you've moved
* Recently paid bills (statements), once you have something saying they've been paid

He also recommends, when dealing with the government:

Any prior speeding tickets or parking tickets could also be called into question by local government. Save those receipts when you pay your tickets!

Something as benign as an unpaid parking ticket can actually result in the suspension of your license. That's because states are taking a federal law that was designed to keep habitual drunk drivers off the roads and re-purposing it to punish scofflaws. Congress passed this law for a good purpose, but it must be amended so that states can't abuse it to fill their tax coffers.

I know this from personal experience when I was unable to renew my license over a ticket that was issued in Virginia 11 years after I moved out of the state. They couldn't even tell me what the ticket was for, just that I owed them money.