When to Toss the Tax Paperwork

Tax season is over... and you've probably been looking at all the paperwork and wondering, how long do I need to keep this stuff? Well, it isn't as long as you think!

The IRS says:
"You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support items shown on your return until the period of limitations for that return runs out. The period of limitations is the period of time in which you can amend your return to claim a credit or refund or the IRS can assess additional tax."  

See the chart image posted here, and if you have more questions about how much paper you should store, click directly to the IRS site for additional information.

A word of caution from Gig Harbor Home Management: Some websites suggest that you store old tax returns electronically in order to cut down on paper storage in your home. They suggest sites like Dropbox or Amazon Cloud. We strongly urge you to consider the risk associated with this! Your tax return contains extremely confidential information, and if stolen could provide significant identity theft opportunities. Oftentimes, large organizations who promise us privacy and security can still be susceptible to hackers. In our opinion, don't take the chance!

If you're facing paper overload in your home office, Gig Harbor Home Management's professional organizing team can bring some calm to your chaos. Call today for a free consultation at 253.225.4864.