| DOCUMENTS |
HOW LONG TO SAVE |
WHY |
| Tax returns and proof of filing |
Forever |
In case you're audited, and to have a history of your finances |
| Documents that support your tax return (1099s, W-2s, statements and receipts that prove deductions) |
Six years. Hang on to paper that backs up this year's filing, for instance, until April 17, 2013. |
In case you're audited. The IRS typically has only three years to examine your return for mistakes, but the window gets wider if it suspects deliberate misconduct. Better safe than sorry. |
| Receipts |
Until the warranty expires for big-ticket purchases; six years for deductible expenses |
To establish date and proof of purchase for warranties, to track deductible expenses for the current year's tax return and to support those write-offs in case of a future audit |
| Stock, bond and mutual fund statements |
Six years after you sell if you have a gain; if you have a loss, six years after you last claim it on your return |
To prove to the IRS how you accounted for the gains or losses |
| Medical bills |
One year, typically; six years if you deduct medical expenses |
In case you are able to itemize or have a dispute with your insurer; if you do itemize, hold longer in case of an audit. |
| Pay stubs |
Until your W-2 arrives |
To confirm the information against your W-2 summary |
| 401(k) and IRA statements |
Until year-end summary arrives |
To check that your contributions have been credited correctly; keep the year-end statements for your long-term files. |
| Bank statements |
Until the end of the year |
To confirm your 1099; hold longer if needed for tax purposes. |
| Utility bills |
Until the end of the year |
To track usage; hold for six years if you deduct a home office. |
| Credit-card statements |
One month for most |
To reconcile charges; hold longer if needed for tax purposes. |
