| 1. Old Documents | | | | need to keep all of your records for at least a few |
| Before you go out and buy a huge safe to store your | | | | years. That way, if there are ever any discrepancies in |
| piles of financial documents, you might want to | | | | the future - such as a new tax lien or wage |
| consider throwing some of them away. According to | | | | garnishment - then you will be prepared to get it |
| the IRS you will want to keep them for at least 3 | | | | resolved as soon as possible. |
| years or up to 7, depending on your unique situation. | | | | 5. Real Estate Documents |
| There are some documents such as records on | | | | If you own a house, then you have a whole set of |
| appreciable assets that you might want to keep for a | | | | additional documents you need to keep. If you bought |
| few extra years. However, for the most part you | | | | a house this year then you will need to keep your |
| should be fine discarding any documents more than 3 | | | | closing statements, and title documents. You will also |
| years old if you regularly file a return. | | | | want to keep record of the interest you paid to your |
| 2. W-2s & 1099s | | | | mortgage lender so that you can deduct those funds |
| All income related tax documents should be kept | | | | on your tax return. |
| somewhere safe. This includes any W-2s for jobs you | | | | 6. Designate a Storage Spot |
| have worked during the year, and 1099s from any | | | | Throwing all of your documents into random drawers, |
| independent contracting work and/or gambling | | | | or keeping them scattered around your home office is |
| winnings. All of these documents are considered "basic | | | | a disastrous idea. Tax documents need to be treated |
| records" and should be kept for at least 3 years. If you | | | | just like other important documents such as passports, |
| have enough room, then you might even want to keep | | | | birth certificates, etc. You should designate a specific |
| them a little longer just in case. | | | | storage spot for your tax records in a filing cabinet, or |
| 3. Receipts | | | | a safe, that you can easily access all year long. That |
| As far as receipts go, too much is better than too little | | | | way you can easily add documents to the file as you |
| when it comes to storing your tax documents. If you | | | | receive them, and will know where they are next tax |
| are deducting any expenses, then you need to keep | | | | season. |
| your proof. If you are having trouble organizing receipts | | | | 7. Organize |
| of multiple different sizes, then you could always photo | | | | In addition to keeping your documents in a specific |
| copy a few onto a single sheet of paper. This will | | | | spot, it is also a good idea to keep them well |
| make the documents easier to organize, and can save | | | | organized. This will make it easier to find specific |
| room as well. | | | | receipts or papers when you sit down to prepare your |
| 4. Tax Settlement Records | | | | tax return. |
| If you recently settled IRS back tax debts, then you will | | | | |