Cleaning out my desk.....

octobergirl Posted: Feb 16, 2003 01:32 PM

Cleaning out my desk.....

How long do you guys keep things like bank statements, phone bills, and credit card bills? Is there a general rule of thumb as to when I can throw these things away? Do I even need to keep these at all?

WithThisRing Posted: Feb 16, 2003 01:47 PM

Re: Cleaning out my desk.....

I usually keep things for about 2 or 3 years. My old firm would keep things for up to 5 years.

I dont think there is a general rule of thumb, just one of those do you think you will never need it again.

If you throw away any statements especially bank statements and credit card statements (regardless of age or even if the account is open) make sure you shred them.

We have a paper shredder and its the best thing.

Karen H Posted: Feb 16, 2003 03:18 PM

Re: Cleaning out my desk.....

Here's some info I just read on how long to hold some of your legal documents.

Medical bills and proof of payment - 3 years
Income tax returns - 6 years (I had heard 7-10 previously)
Bank Statements - 3 years
Cancelled Checks - 3 years

I think a safe rule to rememeber is that the IRS can only audit back 3 years (unless there is reason to believe fraud, in which case they can go back as far as they want) so you would want to hang on to anything that would relate to an audit for at least 3 years.

Jenn524 Posted: Feb 16, 2003 03:22 PM

Re: Cleaning out my desk.....

3 years for bank statements and 1 year or so for bills.

octobergirl Posted: Feb 16, 2003 04:24 PM

Re: Cleaning out my desk.....

thanks to those who answered my question. what about receipts? do you hold on to those too? ugh! i have so much junk in my drawer, and 99% of it seems so useless to keep!!!

Karen H Posted: Feb 16, 2003 07:00 PM

Re: Cleaning out my desk.....

Hang on to receipts for major purchases and any home improvements (these can offset capitol gains when you sell a house). Others can be tossed once a check has cleared the bank, though if it's for something with a warranty, hang on to the receipt as long as the warrenty is good. I think utility bills can be tossed once the check has cleared.