Paper builds up because nobody is sure what is safe to throw away. A three-tier system answers that question once. Rules vary by country and situation, so check with your own tax adviser or the relevant agency if you are unsure.
Keep permanently, in a safe place
- Birth and marriage certificates, adoption papers, passports and Social Security cards
- Wills, powers of attorney and estate documents
- Property deeds and vehicle titles (until you sell)
- Military records and citizenship papers
Store originals in a fire-resistant, waterproof box or a safe deposit box, and keep scanned copies somewhere secure. The important documents checklist lists what to gather.
Keep for several years
For U.S. federal taxes, the IRS says to keep records that support your return for three years from filing in most cases, six years if you underreported income by more than 25 percent, and seven years if you claimed a loss from worthless securities or bad debt. Keep records about property until the period of limitations ends for the year you sell it. Employment tax records should be kept for at least four years.
Keep until replaced or no longer needed
- Insurance policies: until the policy is replaced
- Warranties and manuals: as long as you own the item
- Pay slips: until you match them to your annual tax statement
- Bank and card statements: until you reconcile them, unless needed for taxes
Shred soon
Receipts for small purchases once the return window closes, old utility bills once paid (unless needed for taxes or a home office), and junk mail with personal details.
Make it a system
Use the three-folder paper system for incoming paper, a yearly tax folder and a once-a-year purge in January.
Sources & further reading
Adapt these ideas to your household. Organization guidance is general information, not medical, safety or financial advice.
