Decluttering your home can be a daunting task, but it’s essential for both your physical and mental well-being. One of the most challenging aspects of decluttering is deciding what to do with all the paperwork that has accumulated over the years.
This guide will help you sort through your documents and decide what to keep and what to throw away. We’ll cover everything from tax returns to medical bills to wills and estate planning documents.
Tax Returns
The general rule of thumb is to keep your federal tax returns for seven years. This is because the Internal Revenue Service (IRS) has three years to audit your return and assess additional taxes. However, there are some exceptions to this rule. For example, if you file a fraudulent return, the IRS can audit you at any time.
Bank Statements
Bank statements are not as important as tax returns, but it’s still a good idea to keep them for at least three years. This will give you enough time to review your statements and make sure there are no errors. You can also use bank statements to track your spending and identify areas where you can save money.
Explanation of Benefits (EOB) Forms
EOB forms are statements that you receive from your health insurance company after you’ve received medical care. These forms explain what portion of your medical bill the insurance company will pay. You should keep EOB forms for at least one year. This will give you enough time to review the forms and make sure that the insurance company has paid your bills correctly.
Medical Bills
Medical bills are another type of document that you should keep for at least one year. This will give you enough time to review the bills and make sure that they are accurate. You can also use medical bills to track your medical expenses and identify areas where you can save money.
Utility Bills
Utility bills are not as important as tax returns, bank statements, or medical bills, but it’s still a good idea to keep them for at least one year. This will give you enough time to review the bills and make sure that there are no errors. You can also use utility bills to track your energy usage and identify areas where you can save money.
Paycheck Stubs
Paycheck stubs are not as important as tax returns, bank statements, or medical bills, but it’s still a good idea to keep them for at least one year. This will give you enough time to review the stubs and make sure that your employer is paying you correctly. You can also use paycheck stubs to track your income and identify areas where you can save money.
Credit Card Statements
Credit card statements are not as important as tax returns, bank statements, or medical bills, but it’s still a good idea to keep them for at least one year. This will give you enough time to review the statements and make sure that there are no errors. You can also use credit card statements to track your spending and identify areas where you can save money.
Wills and Estate Planning Documents
Wills and estate planning documents are very important, and you should keep them in a safe place. You should also make sure that your loved ones know where these documents are located.
Decluttering your paperwork can be a daunting task, but it’s important to remember that you don’t have to do it all at once. Start by sorting through your documents and deciding what to keep and what to throw away. Once you’ve decluttered your paperwork, you’ll feel more organized and in control of your life.
Purging Paper Files! What to Keep – What to get rid of!
FAQ
What personal documents can be thrown away and not shredded?
Is it OK to throw away old bank statements?
Which three financial documents items should you shred before throwing away?
What documents should you throw away?
It can be hard to tell what important papers you should throw away. Store anything you need for tax purposes or daily operations. You should shred other important financial documents. You can keep bank records for a few years, but make room for more recent and important records. Marketing materials and scrap paper can go straight into the trash.
What happens if you throw away documents with your trash?
According to a Federal Trade Commission (FTC) report, over 3.2 million consumer reports were filed with the Consumer Sentinel Network in 2019, and 20% of them involved identity theft. Throwing away documents with your trash exposes your information to anyone willing to do a little dirty work to steal your identity.
What documents can you shred?
Keep documents related to major life events – birth, marriage, divorce, and death. Lock securely: Also, keep auto titles and home deeds stored safely for as long as you own the property. Tax records This time of year, the big question is: what tax records can you shred, and when can you shred them? Tax returns – Our conservative advice?
What can you throw away in a recycling bin?
You can throw away anything that you regard as non-essential. Drafts of marketing materials can go into the recycle bin. You can crumble your paper or tear it into pieces, but you do not need to call a shredder. Envelopes without your contact information and nonconfidential sketches or notes can be tossed.