I filed my taxes at the beginning of March and have already received my state and federal. Now the question is how long do I keep the paperwork associated with the tax returns.
Kim Lankford, contributing editor of Kiplinger's Magazine, explains why post-tax season is the best time to purge your life of papers and clutter.
1. Keep your tax returns the 1040 and the forms for atleast 5 years
You may need it for a mortgage or disability insurance. You can go and scan them on your computer
2. Home purchase price and home improvements for when you sell your home
It can help lower your tax bill when you sell
3. You can get rid of the supporting documents money market investment documents, cancel checks,
4. You can toss (actually shred) bills like credit card bills, utiltiies bills after one month.
5. Your paystubs you should save until you get your annual w-2 to make sure that they match up.
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