March 14 - more files!

This one we go back to often as I would guess for most of us it's a large chore.  Devote what you can to this one today--even 20 minutes will tackle some of this plus show you how you CAN progress & get through this one with even small chunks of time.  I really need to do this one, continued to be motivated by Eliza and her various dr. appts.  I really need this stuff more organized and de-cluttered.  For better or worse, you can thank Eliza ;)

For, Wednesday, March 14:

***De-clutter MORE of your files!***

This will hopefully be a day you can start to leaf through some of the files to shred old documents & sort them better.  If you need guidance with what to keep/toss, here's info from Suze Orman's site:

Record Keeping/Files:

Financial Clutter, What To Keep And What To Get Rid Of

 

Keep till warranty expires or can no longer return or exchange

• Sales Receipts (Unless needed for tax purposes and then keep for 3 years)

What to keep for 1 month

• ATM Printouts (When you balance your checkbook each month throw out the ATM receipts)

What to keep for 1 year

• Paycheck Stubs (You can get rid of once you have compared to your W2 & annual social security statement)
• Utility Bills (You can throw out after one year, unless you're using these as a deduction like a home office --then you need to keep them for 3 years after you've filed that tax return)
• Cancelled Checks (Unless needed for tax purposes and then you need to keep for 3 years)
• Credit Card Receipts (Unless needed for tax purposes and then you need to keep for 3 years)
• Bank Statements (Unless needed for tax purposes and then you need to keep for 3 years)
• Quarterly Investment Statements (Hold on to until you get your annual statement)

What to keep for 3 years

• Income Tax Returns (Please keep in mind that you can be audited by the IRS for no reason up to three years after you filed a tax return. If you omit 25% of your gross income that goes up to 6 years and if you don't file a tax return at all, there is no statute of limitations.)
• Medical Bills and Cancelled Insurance Policies
• Records of Selling a House (Documentation for Capital Gains Tax)
• Records of Selling a Stock (Documentation for Capital Gains Tax)
• Receipts, Cancelled Checks and other Documents that Support Income or a Deduction on your Tax Return (Keep 3 years from the date the return was filed or 2 years from the date the tax was paid -- which ever is later)
• Annual Investment Statement (Hold onto 3 years after you sell your investment.)

What to keep for 7 years

• Records of Satisfied Loans

What to hold while active

• Contracts
• Insurance Documents
• Stock Certificates
• Property Records
• Stock Records
• Records of Pensions and Retirement Plans
• Property Tax Records Disputed Bills (Keep the bill until the dispute is resolved)
• Home Improvement Records (Hold for at least 3 years after the due date for the tax return that includes the income or loss on the asset when it's sold)

 

Keep Forever

• Marriage Licenses
• Birth Certificates
• Wills
• Adoption Papers
• Death Certificates
• Records of Paid Mortgages