What papers can i throw away

So what needs to be shredded? The simple answer is destroy everything, here is why. Half of every document has some piece of information that is required by law to be shredded. So how do you decide? The time it will take to review each document would be great not to mention the possibility of making a mistake. Many people are surprised to learn that someone can legally dig through their trash once it has been put out for pick up. The U. Supreme Court decision in California vs. Greenwood, found that there is no expectation of privacy in trash that is left for collection in an area accessible to the public.

That means any document that you put in the regular garbage is available to anyone that wants to look through it. What do identity thieves need to be successful? Your full name and address is enough; oftentimes, this information is pulled from your utility bills. According to Guild, the Federal Trade Commission estimates that it takes consumers an average of six months and hours to recover from identity theft.

Here's how to avoid it with proper paper disposal, according to Guild. You should review your documents before throwing them away. Comb through property records, receipts, pay check stubs, utility bills, and more—do these documents contain any personal information about you that can be gathered and used to steal your identity? If so, you do not want to toss it in the trash intact. Don't leave mail in the mailbox overnight or on weekends and never give out personal information via phone or internet, unless you are the one initiating the contact and, even then, be cautious.

Never respond with personal information via text messages, unencrypted email or internet forms. How long to keep: Up to 12 months. Keep paycheck stubs until the end of the year, and discard them after comparing to your W-2 and annual Social Security statements. How long to keep: One year. How long to keep: Up to three years. If you need them for tax deductions, keep for three years. These records help track your cost basis and the taxes you owe when you sell stocks or properties.

Once you receive the annual summaries, you can shred your monthly statements. If your bank provides online statements, you can switch to receiving your bank documents online and cut down on paper. How long to keep: Seven years. Just in case a bank or processing error shows up down the line that you might not be in the clear, make sure to hang onto any records of loans — this includes student loans, car loans, etc.

How long to keep: Until they are no longer active. After contracts are completed or insurance policies expire, you can discard these documents. How long to keep: Forever.

But here are some basic guidelines to follow for individuals:. Completed tax returns. Many tax advisers recommend that you hold onto copies of your finished tax returns forever.

So you can prove to the IRS that you actually filed. Backup records. Any written evidence that supports figures on your tax return, such as receipts, expense logs, bank notices and sales records, should generally be kept for at least the three-year period.

There are some cases when taxpayers get more than the usual three years to file an amended return. Real estate records. Keep these for as long as you own the property, plus three years after you dispose of it and report the transaction on your tax return. Throughout ownership, keep records of the purchase, as well as receipts for home improvements, relevant insurance claims, and documents relating to refinancing.

These help prove your adjusted basis in the home, which is needed to figure the taxable gain at the time of sale, or to support calculations for rental property or home office deductions. Important : Before tossing out financial documents, shred them thoroughly. To accurately report taxable events involving stocks and bonds, you must maintain detailed records of purchases and sales. These records should include dates, quantities, prices, dividend reinvestment, and investment expenses, such as broker fees.

Keep these records for as long as you own the investments, plus the statute of limitations on the relevant tax returns. If an account is closed, treat IRA records with the same rules as securities.