It’s time for a mid-summer check-up on your record-keeping.
Organizing your financial records now will make filling out your tax return next year easier. It will also help if your return is audited.
It doesn’t matter what type of record-keeping you choose. You can even use a shoe box!
What does matter is how long you keep certain documents.
In general, keep tax returns, bills, credit card statements, and cancelled checks for three years.
More complicated documents such as your IRA or stock transactions should be kept for four years. If you run a business, keep all related documents for a minimum of four years.
Find out more at IRS.gov.