Tax time is over (phew!), and I always wonder when I can get rid of my old records and tax forms. Well, Kiplinger’s Personal Finance to the rescue! An article in their May 2018 issue outlines when you can get rid of some of those papers…..
After three years –
- W-2s – you can shred your annual paystubs once you have checked them against your W-2s
- 1099s – capital gains, dividends, interest income
- 1098s – if you deducted mortgage interest
- Canceled checks evidencing charitable contributions
- Eligible expenses for withdrawals from health savings accounts and 529-college plans
- Contributions to tax-deductible retirement plans
*After six years – for the self-employed, receipts for business income and expenses
Special Items –
- Records supporting contributions to non-deductible IRAs should be retained for three years after the account has been depleted
- Records showing purchases in a taxable account should be retained for three years following the sale of the securities
- Home purchase documents and home improvement records should be retained for three years after you have sold the home.
Important Note – Champion clients can bring their bulk papers to us for shredding/destruction for a nominal fee
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