How long do I need to keep this? – A guide to receipts, statements and financial mess at home

In most homes, paper is a mess. And it seems to mysteriously multiply by itself. But how long do you need to keep all those receipts, bank and credit card statements, and other financial documents? Here’s a practice. In most homes, paper makes a mess. And it seems to mysteriously multiply by itself. But how long do you need to keep all those receipts, bank and credit card statements, and other financial documents? Below is a helpful reference that you can use to manage your home document record.

Mix after one month

Deposit / withdrawal slips at ATMs and banks

• keep it in a file folder until you receive the monthly statement
• reconcile with your statement to make sure charges and payments have been processed correctly
• for a major warranty purchase, staple the receipt to the owner’s manual and keep it on file for the term of the warranty
• for a major non-warranty purchase, keep your receipt if the cost of replacing the item is more than the deductible on your homeowners insurance policy
• if it is a minor purchase without warranty, please shred

Cash purchase receipts

• log into your check book or computer software to make sure you are accounting for all your purchases
• If it is a major purchase with a warranty, staple the owner’s manual and keep it on file for the term of the warranty.
• for a major non-warranty purchase, keep your receipt if the cost of replacing the item is more than the deductible on your homeowners insurance policy
• if it is a minor purchase without warranty, please shred

Credit card receipts

• keep on file until monthly statement is received
• reconcile with your statement to ensure charges and payments have been processed correctly
• If it is a major purchase with a warranty, staple the owner’s manual and keep it on file for the term of the warranty.
• for a major non-warranty purchase, keep your receipt if the cost of replacing the item is more than the deductible on your homeowners insurance policy
• if it is a minor purchase without warranty, please shred

Mix after one calendar year

• Monthly bank / financial institution statements (unless required for home business)
• Brokerage / Mutual Fund Statements (Monthly / Quarterly)
  • reconcile with your annual statement
• Monthly credit card statements
• Credit reports
  
  • You should request your credit report annually to ensure that all information is accurate and up-to-date, especially regarding accounts that you have closed throughout the year.
  • Requesting this file annually helps prevent identity theft, so you can see who has requested the report and for what purpose
• Monthly mortgage statements
  
  • reconcile with your annual statement
• Pay stubs
  
  • shred after matching with your W-2 or 1099 (US) or T4 (Canada)
• Telephone / utility bills

Store for 7-10 years

• Any T4 form, including T4E, etc. (Canada)
• Annual mortgage statements
• Supporting documentation (canceled checks / receipts / statements) for tax returns including but not limited to:
  • donations
  • retirement account contributions
  • child care receipts
  • alimony / child support paid or received
  • medical expenses
  • mortgage interest
  • property tax payments
• Forms W-2 or 1099 (US)
• Year-end credit card statements (if provided)
• Year-end statements from utility companies (if provided)

Hold indefinitely

• Adoption records
• Auto / Home / Life Insurance Policy Information
  • Maintain purchase records for as long as the policy is in effect.
• Automobile registrations (certificate of ownership / registration)
  
  • keep for as long as you own your vehicle
  • if annual registration is required, keep only current recording paper
• Birth certificates
• Business income tax returns and supporting documentation, if you are self-employed
• Death certificate
• Divorce Agreement / Child Custody Orders
• Investment records that clearly show beneficiary information
  
  • purchase records
  • sales records
• Marriage certificate
• Medical records
• Immunization records for children
• Military service records
• Pension plan records
• Receipts for major home improvements / renovations
• Receipts for major purchases that have a long shelf life (refrigerator, stove, freezer, vehicles)
• Religious records
• School / educational records
• Tax returns
  
  • In the US, the IRS has 3 years from the date you file your tax return to examine your return for errors and up to 6 years to audit your return if they suspect that you have not reported your gross income in 25% or more. There is no statute of limitations for an audit when deliberate fraud is suspected.
  • In Canada, the CRA advises you to keep your tax returns, appraisal notices, and all supporting documentation for 6 years from the date of filing your personal income tax return.
  • NOTE ~ I recommend keeping them indefinitely because they take up little space and can often be a valuable resource if there is any dispute over issues such as income tax paid, child support / alimony paid or received, and pension plan benefits.
• Will and / or power of attorney
  
  • must be kept securely in a fireproof safe or lockbox at your financial institution
• Year-end investment account summaries

Now what?

Now that you know what to keep, where are you supposed to keep everything?

Set up a simple home filing system to cover the basics, and invest in a couple of sturdy cardboard or plastic filing boxes for the information you need to keep on time or indefinitely.

And one final word of caution: When you decide you no longer need to keep certain documents, be sure to shred them and DO NOT throw them away in general trash or recycling. Confidential financial information or personal information should always be DESTROYED to avoid any chance of identity theft that could lead to greater headaches than you can imagine.