Papers – we’re all covered in them! Bills, notices, school papers and so on. If you’ve ever wondered just how long you should keep them all, you are not alone
Here’s an outline of how long you should keep some of the more important papers that fly across your desk!
Keep for One Month
ATM and bank deposit/withdrawal slips
- keep in a file folder until monthly statement received
- reconcile with your statement to ensure that charges and payments have been properly processed
- if for major purchase with warranty, staple receipt to the owner’s manual and file for the term of the warranty
- if for major purchase without warranty, keep receipt if item replacement cost is higher than the deductible on your homeowner’s insurance policy
- if for minor purchase without warranty, shred
Cash purchase receipts
- enter into your cheque book or computer software to ensure that you are accounting for all your purchases
- if for major purchase with warranty, staple to the owner’s manual and file for the term of the warranty
- if for major purchase without warranty, keep receipt if item replacement cost is higher than the deductible on your homeowner’s insurance policy
- if for minor purchase without warranty, shred
Credit card receipts
- keep in file until monthly statement received
- reconcile with your statement to ensure charges and payments have been properly processed
- if for major purchase with warranty, staple to the owner’s manual and file for the term of the warranty
- if for major purchase without warranty, keep receipt if item replacement cost is higher than the deductible on your homeowner’s insurance policy
- if for minor purchase without warranty, shred
Keep for One Calendar Year
Bank/Financial Institution monthly statements (unless needed for home business)
Brokerage/Mutual Fund Statements (Monthly/Quarterly)
- reconcile with your annual statement
Credit card monthly statements
Credit reports
- you should request your credit report annually to ensure that all information is accurate and up-to-date, especially with regard to accounts you have closed in the course of the year
- requesting this file annually helps to detect any suspicious activity that may be an indicator of identity theft, so you can see who has requested the report and for what purpose
Monthly Mortgage Statements
- reconcile with your annual statement
Pay stubs
- shred after reconciling with your W-2 or 1099 (US) or T4 (Canada)
Supporting documentation for any e-Claims that you submit through your insurance plan
Telephone/Utility bills
Keep for 6-10 Years
Any T4 Forms – including T4E, etc. (Canada)
Annual Mortgage Statements
Supporting documentation (cancelled cheques/receipts/statements) for tax returns including but not limited to:
- donations
- retirement account contributions
- child care receipts
- alimony/child support paid or received
- medical expenses
- mortgage interest
- property tax payments
W-2 or 1099 Forms (US)
Year End statements from Credit cards (if provided)
Year End statements from utility companies (if provided)
Keep Indefinitely
Adoption Records
Auto/Home/Life Insurance policy information
- keep purchase records for as long as policy is in force
Automobile Records (ownership certificate/registration/records of repairs or maintenance done)
- keep for as long as you own your vehicle
- if annual registration required, keep only current registration paper
Birth Certificates
Business Income Tax returns, and supporting documentation, if self-employed
Death Certificates
Divorce Agreement/Child Custody Court Orders
Investment records clearly showing beneficiary information
- purchase records
- sales records
Marriage Certificate
Medical records
- including immunization records of children
Military service records
Pension Plan records
Receipts for major home improvements/renovations
Receipts for major purchases that have long life expectancy (refrigerator, stove, freezer, vehicles)
Religious records
School/Education records
Tax Returns
- In the US, the IRS has 3 years from the date you file your tax return to examine your return for errors and up to 6 years to audit your return if they suspect that you have underreported your gross income by 25% or more. There is no statute of limitations on an audit when deliberate fraud is suspected.
- In Canada, CRA advises you to keep your tax returns, Notices of Assessment, and all supporting documentation for 6 years from the date of filing your personal income tax return.
- I recommend keeping these indefinitely because they take up little space and can often be a valuable resource if there is any dispute over such things as income tax paid, child support/alimony paid or received and pension plan benefits.
Now what?
Now that you know what to keep, where are you supposed to put it all? Set up a simple home filing system to cover the basics, and invest in a couple of sturdy cardboard or plastic filing boxes for the information you should keep long-term or indefinitely.
And a final caution – when you decide that you no longer need to keep certain documents, make sure you shred them and DO NOT put them in the general trash or recycling. Sensitive financial information or personal information should always be DESTROYED to avoid any chance of identity theft that could lead to headaches greater than you can imagine.
Will and/or Power of Attorney
- should be kept securely in a fire-proof home safe or safety deposit box at your financial institution
Year End Investment account statements
Now what?
Now that you know what to keep, where are you supposed to put it all? Set up a simple home filing system to cover the basics, and invest in a couple of sturdy cardboard or plastic filing boxes for the information you should keep long-term or indefinitely.
And a final caution – when you decide that you no longer need to keep certain documents, make sure you shred them and DO NOT put them in the general trash or recycling. Sensitive financial information or personal information should always be DESTROYED to avoid any chance of identity theft that could lead to headaches greater than you can imagine.
