How do you handle mail, and other relevant documents?

Toss, shred, or save?

With all the junk mail, receipts, bills, and other paper we bring into the house every day, the line between what should get tossed, shredded, or saved can often blur. We’ve listed below what you need to know about each item. It would help to have either an electric shredder or a set of shredding scissors before getting started sorting everything!

Junk mail: Credit card offers, magazine renewal letters, advertisements and fliers can all go into the shredder as soon as you get them. A good rule is to shred anything with your name and address on it that you plan on throwing out. You don’t need to shred magazines when you’re done with them—just the back or front page with your address on it.

Receipts from credit cards: Save these until you can match the receipts with the statement from your bank, then shred them. However, if they don’t match your statement, keep them with the bill until you resolve the dispute—or, if they involve tax-related expenses, keep for seven years with all tax documents (more on those below).

Bills: For bills from large purchases—furniture, cars, jewelry, electronics, etc—save those for proof of purchase and value in case of damage. Save the warranty with the bill for each of those items. For credit card bills or other bills, wait until your payment has gone through, and then shred them.

Bank statements: Save for a year and then shred. Better yet, switch your bank statements so that you can receive them via e-mail rather than paper. It’s more environmentally friendly, and you don’t have to shred anything. If you’d like to archive them physically, you can just print it out, then shred after a year.

Paycheck stubs: Save every year until tax season, when you can match your paychecks to your W2 form. If they match, go ahead and shred the paychecks. If your paychecks list how many vacation days you have left, save the last one of the year.

House-related bills: Save receipts and bills from permanent home improvements, repairs, installations, changes, or whatever else. When you move, save those receipts from the old house for six years and keep any record of legal fees associated with the move.

Tax forms: Save these forms for up to seven years. You have three years to file an amended return if you made a mistake on your taxes. If you accidentally under-reported your gross income by 25% or higher, the IRS has six years to challenge it. Keep a copy of all 1040 tax forms permanently.

Of course, have a safe place or file where you can permanently keep birth and death certificates, marriage licenses or divorce papers, military records, insurance claims, accident reports and claims, proof of ownership and major debt repayment, and any legal documents—including tax documents. And make sure that whatever paper you do throw away, shredded or not, you recycle it! We already get too much mail, so turn it into a good deed by recycling.
(Thanks VP!)