Organization — What to Keep

As you go through papers and shred, or start deleting old computer financial records, keep these documents:

FOR ONE YEAR

Paycheck stubs until you can check your W2 in January for accuracy. Keep the final stub and bring it with your W2 to your preparer.

Bank Statements to check your 1099s

Brokerage Statements until you get your yearly summary. Keep seven years if they show gain or loss.

Medical Receipts in case you can qualify for a medical deduction. Keep medical appointments on a calendar so mileage can be computed if you qualify for a deduction.

Utility Bills should be kept if you take the home office deduction (7 years) or if you may qualify for the MI home heating credit.

SEVEN YEARS

Supporting documents for yearly tax return

This would include W2s, 1099s, brokerage statements, property tax statements, medical bills, any canceled checks that would back up deductions on your tax return.

FOREVER

Tax Returns

Receipts for big ticket items should be kept until you sell the item.

Keep the receipts for seven years after the sale if the item was deductible.

IRS Forms that indicate non deductible contribution to a tradition IRA or a Roth conversion.

Retirement and Brokerage Annual Statements

Receipts for Capital Improvements to your home should be kept for seven years until after it’s sold.

 

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