Monday, February 17, 2014

The Season of Shredding

It's everyone's favorite time of year...tax season! Whether you've finished filing your taxes or still need to begin, knowing which documents to save or shred is in important part of putting together your "tax puzzle".

Have you ever heard of the “Three Year Rule”? After you have filed your taxes, make sure to hold on to certain documents for at least three years. Why three years? You need to keep your documents that will support the items on your tax return for three years in case the IRS needs to start an audit.



Shred after three years:
· Tax return forms
· Tax return schedules
· Property records
· Investment records & statements
· Business assets (for depreciation)

These aren't the only records to shred after you have completely filed your taxes. To ensure you will not be a victim of identity theft, shred anything with sensitive information on it.

Documents to shred sooner than 3 years:
· Tax records
· Pay stubs
· Bank statements
· Credit card statements
· Medical records
· Insurance records
· IRA contributions
· Home purchase/sale/improvements
· Warranties

Don’t have a shredder? WACOSA's DocuShred, located next ThriftWorks!, will shred all of your confidential documents.