With our monthly @AuthorEMS #filefest, we encourage our readers to keep paper clutter at bay. However, there are valid reasons for retaining certain paperwork. But for how long?
These suggestions were excerpted from a recent issue of Money magazine:
- Tax returns – Forever
- Tax support documents (W-2 statement, receipts, etc.) – Six years (length of time you can be audited by the IRS)
- Year-end investment statements – Until six years after you sell the investment, for gains/losses proof
- Pay stubs – Until you receive your W-2
- Home improvement receipts – Until six years after you sell the home, for tax purposes
Large purchase receipts – As long as you own the item, for warranty and insurance purposes