Are you trying to live a minimalism lifestyle? Are you getting weighed down by all your physical mail and paperwork? Are you wondering how long to keep some of the paper work you have?
Receipts (non-deductible items), deposit/ ATM slips, and reconciled bank statements should be kept for at least 1 month.
Items that should be kept for 1-3 years are: checkbook ledgers, paycheck stubs, mortgage statements, insurance records (expired), charitable contributions, all business – income related documents, proof of deductible purchases, and receipts for charitable donations.
There are 8 items that you should keep for at least 7 years. They are state and federal income tax returns, w-2 and 1099s, medical bills and statements, contracts, any receipts that were used as tax deductions, cancelled checks, mileage records, and real estate tax forms and records.
Did you know that the IRS can perform an audit up to 6 years after filing? Well it is true! It is recommended that you keep those tax items for at least 6 years.
Documentation that you should keep forever are important special documents. They are birth certificates, marriage/ divorce paperwork, auto titles, mortgages, investment statements, passports, home improvement receipts (for insurance), property agreement, contracts, pension + retirement plan records, education records, medical records, current insurance policies, wills, and receipts from major purchases (for insurance). I personally have an electronic copy of the special documents or some individuals put them in a safety deposit box it is completely up to your preference.
I hope that this information was helpful and informative. It is one step to get a minimalist lifestyle!
Thank you and have a great day,
Josh & Devon