Keep end of year bill receipts & statements?
I’m looking for a current list of all statements, CC and electric etc. I should keep and for how long. This would be helpful as I am getting tax info collected.
Thank you. Your advice is valued.
Terry Says
You asked the wrong person! I have sort of made a lifetime hobby of saving that stuff — in a banker’s box for every year! If you asked for my February, 1983 Visa statement I could find it in 10 minutes! thank goodness I have a huge basement! My children will have a great bonfire when I’m gone.
Seriously, if the IRS suspects fraud, there is an unlimited lookback. If the IRS is going to do an audit, they might look back 3 years. The old standard advice used to be to keep your bank statements, old tax returns, and other important info for 7 years. But now that everything is digital, there’s probably no need to keep your old bills and bank statements.
The ONE kind of thing you should keep is records of expenditures on your home, so when you sell it you can adjust your “cost basis.” Same thing with stock purchases or other investments outside your retirement plan accounts (which are all eventually taxed as ordinary income). If you sell those other items like stocks, they will be subject to capital gains. And, keep a copy of your tax returns forever.
Other than that, whatever makes you comfortable — and whatever you have space to keep!!
