Here is a guide from the Federal Trade Commission (FTC) for getting rid of some of that extra paper clutter and free up some shelf and cabinet space:
- Immediately shred – All sales and ATM cash withdrawal receipts, utility bills, credit card statements that have been paid, expired warranties, cancelled checks that won’t be used for tax purposes, and unsolicited offers for credit cards. Also remove and shred the labels off of your prescription medications before throwing away the empty bottles.
- Shred within one year – Destroy your pay stubs after double checking them with our W-2 or other tax forms, medical bills that are undisputed and paid, and bank statements.
- Shred after seven years – Shred tax-related receipts, 1099 and W-2 forms, canceled checks, and other records used for tax deductions. Although the FTC says that we should hang on to tax returns indefinitely, the Internal Revenue Service states that you can safely discard old returns three years after filing date an original tax return or two years after you have paid the tax due, whichever date is later.
