What to keep, and for how long
Some papers you need forever, some for a few years, and some can be shredded the day you check them. Here’s a simple guide to clearing out without throwing away something important.
Keep forever
Store these somewhere safe, and keep a secure copy:
- Birth and death certificates
- Social Security card
- Passports (including expired ones, which can help prove citizenship)
- Marriage and divorce documents, and adoption papers
- Military service records
- Wills, powers of attorney and similar legal documents (originals)
Tax returns and records
The IRS’s general rule: keep records that support a tax return for 3 years from when you filed it. Some situations need longer:
- 6 years if you didn’t report income that you should have, and it was more than 25% of the income shown on the return.
- 7 years if you claimed a loss from worthless securities or a bad debt deduction.
- Indefinitely if you didn’t file a return.
Many people simply keep tax returns and their supporting documents for 7 years, to cover most cases. Keeping copies of the returns themselves for longer can be useful, for example when applying for a mortgage or Social Security.
Keep while it matters
- Home records: keep the purchase documents and receipts for major improvements for as long as you own the home, plus the tax record period after you sell it. They can reduce tax on a sale.
- Investment records: keep purchase records until you sell, plus the tax period after that.
- Insurance policies: keep while active, and longer if there’s an open claim.
- Loan documents: keep until the loan is paid off, plus the letter confirming it’s paid.
- Car title: keep while you own the car.
- Warranties and receipts for expensive items: keep while the warranty lasts or while you own the item.
Short-term
- Pay stubs: until you’ve checked them against your year-end W-2.
- Bank and credit card statements: check them each month. Keep those needed for taxes; most others can go after a year.
- Utility bills: a few months, unless you need them for taxes or proof of address.
- Medical bills: until they’re paid and any dispute is resolved. See What to do before you pay a medical bill.
- Receipts for small purchases: until the return period is over.
Do this today
- Gather your “keep forever” documents in one safe place, such as a fire-resistant box.
- Make a secure digital copy of the important ones.
- Shred old documents that contain account numbers or your Social Security number instead of recycling them.
- Tell someone you trust where your important documents are kept.
Sources
This guide is general information, not legal or tax advice. If you run a business, are involved in a legal dispute, or have an unusual tax situation, you may need to keep records longer. Ask a tax professional.