Old Bills and Receipts

What do you do with your old bills and receipts?
Do you keep them or throw them out?

If you keep them, how long do you keep them for?

Where do you keep them?

What receipts do you keep? and

What reciepts do you throw out?

Danielle doesnt keep any of her receipts and she laughs at me cause I keep everything. My parents say that you should keep them for 7 years, but I didnt know if that was true or not.....I have no idea where I am going to put them when i move in a few weeks.
Thanks,
Scott

What do you do with your old bills and receipts? File bills, throw out receipts, except ones that I might need in the future


If you keep them, how long do you keep them for? Bills, 2 years, receipts until i know I don't need them anymore

Where do you keep them? A file cabinet, a plain envelope

What receipts do you keep? Things I might need to return, presents I bought for other people, big purchases

What reciepts do you throw out? Everything else - bank, food, almost everything

This is a little hard to read because it was formatted in a table, but you can get the idea. I think I pulled it off of www.bankrate.com

Financial records timeline

Taxes·Returns ·Canceled checks/receipts (alimony, charitable contributions, mortgage interest and retirement plan contributions)

Seven years·
The IRS has three years from your filing date to audit your return if it suspects good faith errors. · The three-year deadline also applies if you discover a mistake in your return and decide to file an amended return to claim a refund. · The IRS has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more. · There is no time limit if you failed to file your return or filed a fraudulent return.

IRA contributions
PermanentlyIf you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that you already paid tax on this money when the time comes to withdraw.

Retirement/Savings plan statements
From one year to permanently· Keep the quarterly statements from your 401(k) or other plans until you receive the annual summary; if everything matches up, then toss the quarterlies. · Keep the annual summaries until you retire or close the account.


Bank records
From one year to permanently· Go through your checks each year and keep those related to your taxes, business expenses, housing and mortgage payments. · Throw away those that have no long-term importance.
Brokerage statements Until you sell the securitiesYou need the purchase/sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time.


Bills
From one year to permanently· Go through your bills once a year. · In most cases, when the canceled check from a paid bill has been returned, you can get rid of the bill. · However, bills for big purchases -- such as jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc. -- should be kept in an insurance file for proof of their value in the event of loss or damage.

Credit card receipts and statements
From 45 days to seven years· Keep your original receipts until you get your monthly statement; toss the receipts if the two match up. · Keep the statements for seven years if tax-related expenses are documented.

Paycheck stubs
One year· When you receive your annual W-2 form from your employer, make sure the information on your stubs matches. · If it does, toss the stubs. · If it doesn't, demand a corrected form, known as a W-2c.

House/Condominium
From six years to permanently· Keep all records documenting the purchase price and the cost of all permanent improvements -- such as remodeling, additions and installations. · Keep records of expenses incurred in selling and buying the property, such as legal fees and your real estate agent's commission, for six years after you sell your home. · Holding on to these records is important because any improvements you make on your house, as well as expenses in selling it, are added to the original purchase price or cost basis. This adds up to a greater profit (also known as capital gains) when you sell your house. Therefore, you lower your capital gains tax.

Thank you! I was just wondering how long to keep everything as I was cleaning my room today.

Thanks so much. I started shredding 2002-2002 receipts and cell phone bills last night. I am keeping all bank account statements, pay check stubs, car insurance bills, credit card statements, and all big purchase receipts.
Scott

I keep them in a file, assorted by year & sub-categorized by type of expense.

ETA: I keep mine for 7 years.