What documents do you need to keep?

Are you keeping every utility bill, tax bill, and credit card receipt because you're not sure what you must keep? If so, you probably have boxes and files of paper that are unnecessary. And, as the tax year ends and another begins you're probably starting to think about what is necessary to submit your taxes.

Having exactly what you need and no more is a great way to streamline your record keeping, your tax preparation, and your ongoing filing.

IRS Publication 522 is a guideline from the IRS which details what kind of personal records you should keep and how long you should keep them. IRS Publication 538 gives basic tax information for people who are starting a business. These guides are quite readable and include references to more useful sources. Give them a read to get the information 'from the source' on what document you need to keep (and throw the rest away!).

Comments

[Janelle]

Do you need to keep bills that you have paid for any length of time? Do you need to keep paystubs from old jobs or even current jobs?

[Jessica Duquette]

Thanks, Susan, unfortunately, even though the IRS INSISTS that you keep immaculate records, there really is no official IRS record retention schedule, not for business, not for personal. The closet you can get are those IRS Publications you mentioned, but I have not found them particularly helpful, alas...

My suggestion is to check with your CPA, as there are so many tax laws that keep changing and vary from state to state, which is why you will never see an "official" record retention schedule anywhere, it's only anyone's best guess...

If I may, I offer a post I recently wrote over at 5 Minutes for Mom on the subject:

http://www.5minutesformom.com/722/organize-receipts/

all the best and happy happy new year to you!

warmly,

Jessica from It's Not About Your Stuff