Setting the Record Straight: What to Save, What to Scrap

Setting the Record Straight: What to Save, What to Scrap Bills, records, transcripts, receipts.. what's worth saving, and what should be scrapped? Even in today's digital age, experts suggest keeping paper copies of vital documents. Golda Szydlowski, lead business instructor at Everest Institute-Dearborn, offers the following guidelines. And remember, when in doubt, don't throw it out! ATM Withdrawal Receipts. Once the information appears in your online account or on your monthly statement, throw away the ATM slip. The same holds true for deposit slips and credit card receipts. SCRAP Sales Receipts for Minor Purchases. After you've used the item a few times, or the warranty has expired, feel free to toss. SAVE FOR THE YEAR Paycheck Stubs. Your final pay stub and W-2 form will document all of your earnings for the year, so once you've received your final paycheck and reconciled it with previous stubs, keep the final and safely dispose of the rest. Monthly Credit Card Statements. Often an entire year's activity is listed in detail on your final, end-of-the-year statement, making every other statement redundant. 15a941348456456 156894131 Utility Bills. It's always a good idea to save utility bills for at least a year for month-to-month comparisons, but unless they are needed for business deductions, feel free to scrap after a year. SAVE FOR SEVEN Final Credit Card Statements, W-2's and Receipts for Business Deductions. The Internal Revenue Service has up to three years from the date you file your tax return to examine it for errors and as long as six years to conduct an audit. Keep any paperwork that supports your return until that audit window closes. Receipts for Major Purchases. What constitutes a major purchase? Any item whose replacement cost exceeds the deductable on your homeowner's or renter's insurance. SAVE INDEFINITELY Receipts for Home Improvements. Keep receipts for major purchases and receipts that show how much you've paid for home improvements indefinitely, both to satisfy potential buyers and to reduce possible taxes when you sell your home. 10 Birth Certificates and Expired Passports. Birth certificates are often used to verify citizenship and can be required for job applications, marriage certificates, and driver's licenses. Always keep yours in a safe place. Likewise, an expired passport can be helpful should your valid passport be lost or stolen. Immunization Records. While most medical records are now kept digitally, certain medical records, including immunizations, may only exist in paper form. If needed for school or travel, these records may be difficult to retrieve at short notice. Thus, keep your own copies handy. Medical Bills. For insurance purposes, always keep copies of your medical bills and insurance statements in case there's ever a question about coverage, or if a billing error is suspected. In fact, a recent study from the American Medical Association (AMA) revealed one in 10 bills paid by private health insurance have inaccuracies due, in part, to coding errors. Keeping a paper trail can come in handy if you ever have to dispute a charge or claim. Everest Everest College and Everest Institute provide career-oriented diploma programs in the healthcare, skilled trades and business fields. Popular courses include medical insurance billing and coding, paralegal, and business accounting. Programs vary by campus. Everest has nearly 100 schools in the US. and Canada, and is owned by Corinthian Colleges, Inc, oneof the largest post-secondary education companies in North America. For more information, visit http://accounting.everestcollege.edu. For more information about our graduation rates, the median debt of students who completed the program and other important information, please visit our website at www.everest.edu/disclosures.