It can be easy to get overwhelmed with the amount of paperwork in your home. Before you throw away any paperwork, it’s vital to make sure that you don’t get rid of any important documents in case you need to refer to them in the future. Keep these guidelines in mind to save important paperwork!
- Taxes – make sure to keep all tax information for at least seven years, since the IRS has three years from the time you file your taxes, to audit your taxes, and up to six years to challenge your tax return if they suspect that you underreported your gross income by at least 25 percent.
- Cancelled checks or receipts – keep all alimony checks, mortgage interest documents, retirement plan contributions, and charitable donations for at least seven years.
- Paycheck stubs – keep your paycheck stubs for at least a year so that you’re able to verify the information on your W-2.
- Credit card statements – only keep your credit card statements for seven years if the information for tax-related expenses is documented on them.
- House records – keep receipts for permanent home improvements or renovations for as long as you own the property. Also, make sure to keep records of any expenses associated with buying or selling the property.
- Loan documents – keep all loan documents until the loan is paid off, or until you sell the item that the loan was for, whichever comes first.
- Insurance policies – you can throw away any insurance policies once you renew them. However, make sure that you keep all paperwork pertaining to your life insurance policy forever!
Contact Hoffman Brown Company in Sherman Oaks, California for all of your insurance needs and for more information about which documents need to be kept!