How long do you keep

**Florence** · 08-15-2004, 05:51 PM

Bank statements, canceled checks, Income Tax papers, bills, etc.?? Is there a usual rule of thumb for keeping records?? I'd like to have a big bonfire....

**seadream** · 08-15-2004, 06:03 PM

My bank statements I go over right away with my bank book to make sure its balanced and then it gets shredded.

I don't get cancelled checks back from my bank anymore.

Doctor bills, credit card bills, etc. I keep all of them for a year and then they get shredded.

Income tax paper I keep for 3 years before I shred them.

**PrairieRose** · 08-15-2004, 06:11 PM

We are self employed and have been told by our accountant to keep anything important (receipts relating to our business expenses, medical expenses, donations, etc...., bank statements, so on and so forth) for 10 years. The thing is if you were to get audited they can go back for more than that if they choose to do so and the burden of proof for any deductions lies in your hands....
I'm like you Florence, I'd love to get rid of so much paper that I just can't yet.......

**slowtypinwoman** · 08-15-2004, 07:12 PM

I have always heard that 7 years is the rule. Seems that there are some varying opinions here. I'd call your bank to be on the safe side.

**homesteadmamma** · 08-15-2004, 07:16 PM

Any income tax papers should be kept for at least 7 years. They really are important, especially if they ever do an audit.

For bills, I keep them for a year. Cancelled checks are kept with the bills as proof of payment.

I hate having papers around though. I'd rather not have any if I could.

Note: when getting rid of paper, make sure it is shredded well. Make sure there is no name, address or account numbers that can be found by anyone. Its very easy to have someone steal your identity or use your account numbers. If you don't have a paper shredder its well worth getting. Otherwise use scissors and cut, cut, cut.

**Florence** · 08-15-2004, 07:31 PM

OK, the bonfire will be of a moderate size!! LOL!! I'm not self employed so there is no reason for me to be keeping all these bank statements and canceled checks. I'll keep the IRS paperwork going back 10 years (just to be safe). I am embarrassed to admit it but I have 401K statements going back to 1991. I'll keep one year of back 401k statements and shred the rest. Thanks for all the suggestions!!