Paper - Keep It / Toss It

Paper clutter often occurs because we just don't know what to do with it. Should we keep it for a month, a year, indefinitely?? Real Simple magazine offered these guidelines for your "official" papers at home. Of course these are only general rules and you should check with your accountant to be sure these pertain to your particular finances.

Toss Each Month
* ATM and bank deposit slips
* Credit card statements (after you've checked all against your statements)
* Sales receipts for minor purchases (unless they have a warranty)

Toss After One Year
* Monthly bank and credit card statements (if you don't itemize deductions)
* Monthly/quarterly brokerage and mutual fund statements
* Monthly mortagage statements (if your year-end statements shows the total amount of interest and property tax you've paid throughout the year)
* Phone and utility bills (if you don't have a home office, use phone for business calls, or anticipate any need to prove long-term residency)
* Paycheck stubs (after they are reconciled against your annual W-2 or 1099)

Keep for Seven Years
* W-2 and 1099 forms
* Year end statements from credit card companies
* Phone and utility bills (only if you deduct for business, have more than 1 home, or have moved within the past few years)
* Cancelled checks and receipts or statements for: annual mortgage interest, property taxes, deductible business expenses, child-care bills, out of pocket medical expenses, or any other tax deductible expenses

Keep Indefinitely
* Annual tax returns
* Year end summaries from financial services companies
* Confirmation slips listing the purchase price of any investment that you own
* Home improvement records
* Receipts for major purchases (any item whose replacement cost exceeds the deductible on your homeowner's or renter's insurance policy beneficiary designations)