6 Documents You Can Delete or Delete Right Now – and 7 You Should Keep

Is your home office starting to look like a paper recycling plant? Or is your computer full of files? You are not alone. Many of us are paralyzed by the fear of breaking or deleting the wrong document, so we automatically end up saving everything.

The result is a cluttered filing cabinet or hard drive where important documents — like your estate or car title — get lost amid a mountain of ten-year-old bills.

But the collection of paper or electronic documents is not only a bad thing, it is a security risk. A thief cannot steal a document that you have already destroyed. By following a clear maintenance schedule, you can protect your identity and reclaim your property.

What you should throw away

1. ATM receipts and deposit slips

Unless you need these for certain tax deductions, such as if you’re self-employed, there’s no reason to keep a small slip of paper from an ATM. Once you confirm the transaction in your bank app or monthly statement, these slips are just clutter.

However, they contain partial account numbers and balances, so you can just throw them in the trash. Keep it private to keep your bank details private.

2. Unsolicited credit card issuance

Pre-approved credit card offers are a gold mine for dumpster-diving identity thieves. If a hacker finds one, they may be able to open an account in your name.

Clean these up immediately, including the return envelope. To prevent them from arriving in the first place, you can opt out of the prescreened offer at OptOutPrescreen.com, the official website of the consumer credit reporting industry.

3. Paid utility bills

For most people, the utility bill has served its purpose when it is paid. If you need to check your usage history, you can log in to your provider’s website to view past statements.

Exceptions: If you claim the home office deduction on your taxes, treat these bills as tax-support records (see below).

4. Expired warranties and manuals

If you no longer own the item, or if the warranty has expired, the paperwork is invalid. Even for functional items, you can find the user manual online in PDF format.

5. Small sales receipts

You don’t need to keep receipts for groceries, clothing or small household items if you’re sure you won’t return them.

Exceptions: Keep receipts for big-ticket items – such as computers, appliances or jewelry – for insurance purposes. It’s also wise to keep receipts for major home improvements, as these can help reduce your capital gains taxes when you eventually sell your home.

6. Old bank statements

The Federal Trade Commission (FTC) generally recommends keeping bank and credit card statements for one year. This gives you enough time to dispute any errors and compile your records.

One reason to keep them longer is if they contain specific purchases related to your taxes, such as charitable donations or business expenses.

What to keep forever

1. Tax returns

Although the IRS generally has a three-year statute of limitations on audits, experts recommend keeping your original tax returns (1040 forms) indefinitely.

They act as a permanent record of your financial history and can be valuable if you ever need to prove your income. Since it takes up less space, it’s better to play it safe and install it permanently.

2. Important records

These documents define your legal identity and the status of your family. They are difficult, time consuming and often expensive to replace. Keep physical original copies in a safe fireproof place or safe deposit box.

• Birth certificates
• Death certificates
• Marriage licenses
• Divorce orders
• Adoption papers

3. Inheritance and inheritance arrangements

Your will, will, trusts and power of attorney must be kept forever. Your executor or trusted family member should know exactly where these are located.

When you update your will, be sure to destroy the old version to avoid confusion among your heirs.

4. Tax supporting documents

Although you keep the return forever, supporting documents (W-2s, 1099s, mileage logs, charity receipts) usually need to be kept for as long as the IRS can audit you.

The IRS usually has three years to begin an audit, but this extends to six years if it suspects you’ve underreported your income by 25% or more. To be safe, most accountants recommend a seven-year retention period for these files.

5. Loan and mortgage documents

Keep all documents related to the loan as long as you are paying it off. If the home or car loan is paid off in full, keep the discharge or payment statement as long as you own the property to prove your direct ownership.

For your home, keep all records related to the purchase price and the cost of any major improvements. You will need these to calculate your basis and potential tax liability when you eventually sell the property.

6. Titles and books of vehicles

You must keep the original deed and title to your home as long as you own it. This is a complete proof of ownership.

If you lose the car title, selling the car becomes a nightmare involving the DMV. Keep this in a safe place until you register it with the new owner.

7. Applicable insurances

Keep your life, health, auto and home insurance policy documents current. You need to know exactly what is covered and how to file a claim.

If you renew a policy and get a new declaration page, you can delete the old one — unless there is an open claim pending from that time.

An important point

The ultimate goal is not just a clean desk or computer; it is the ability to find what you need in an emergency. Once you’ve gotten rid of the clutter, organize what’s left.

An organized filing system saves time during tax season and protects loved ones from sifting through piles of junk mail in the future.