financial clutter

As we move into tax season, most of you will be filling out your ATBS tax organizer and getting all your documents sent in to your consultant. That makes this the perfect time to organize your financials. But where do you start? If you have boxes full of bank statements or investment summaries, you might be a little unsure on how long to keep everything.

Below you will find our guide for how long you should store all of your important documentation. This will help you to reduce your financial clutter.

What to keep until the warranty expires or return period is past:

      Sales receipts - unless you need them for tax purposes, and then you should keep them for three years.

What you should keep for one month:

      ATM printouts - These can be discarded after you balance your checking account each month.

What to keep for one year:

      Paycheck stubs - These can be thrown away once they have been compared to your W-2 and your social security statement.

      Utility bills - These can be thrown away after one year, unless you are claiming a home office. If you are, then they need to be saved for three years.

      Cancelled checks - If these are needed for tax purposes then they should be saved for three years.

      Credit card receipts - If these are needed for tax purposes then they should be saved for three years.

      Bank statements - If these are needed for tax purposes then they should be saved for three years.

      Quarterly investment statements - Keep until you receive your annual statement.

What to keep for three years:

      Income tax returns - Keep in mind that you can be audited by the IRS for up to three years after filing your taxes. 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 - You will need this for capital gains tax

      Records of selling a stock - You will need this for capital gains tax

      Receipts, cancelled checks, or other documents supporting income, or deductions on your taxes - Keep for three years from the date the return was filed, or two years from the date the tax was paid, whichever is later.

      Annual investment statement - Keep for three years after you sell your investment.

What to keep for seven years:

      Records of satisfied loans

What to keep while active:

      Contracts

      Insurance documents

      Stock certificates

      Property records

      Stock records

      Records of pension and retirement plans

      Property tax records and disputed bills - Keep the bills until the dispute is resolved.

      Home improvement records - Hold for at least three years after the due date for the tax return that includes the income or loss on the asset after it’s sold.

What you should keep forever:

      Marriage licenses

      Birth certificates

      Wills

      Adoption papers

      Death certificates

      Records of paid mortgages

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Sean Bryant, Digital Marketing Manager

Sean is a graduate of the University of Iowa where he received a Bachelor's of Arts degree in economics. After beginning his career in banking, he found his love for marketing.  Before arriving at ATBS in 2014 he spent time working for two different technology startups as well as his own freelance marketing company.

Outside of work Sean enjoys spending time with his wife, daughter and dog. When he's not traveling you can frequently find him on his bike or snowboard.

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