Your Important Papers: What, Why,

and How Long to Keep

Fact Sheet No. 9.165 Consumer Series| Finance

by N. Porter and L. Kubin*

Important papers prove certain events People often keep a combination of paper Quick Facts
occurred and they are used to document and digital records. Digital records are kept
financial transactions. They may be needed at by storing electronic images on an electronic • A systematic plan for
various times during one’s life. For example, storage system like a computer hard drive keeping track of important
a birth certificate is used to prove age when or portable drive. According to the IRS (See documents can save you
starting school, to obtain a driver’s license, IRS Publication #552, ‘Record-keeping for hours of anxious searching
or to apply for Social Security benefits. It is Individuals’) all requirements applying to for misplaced items.
also needed by relatives to obtain a death hard copy records also apply to electronic
certificate. Financial records are the key to storage systems which maintain tax books • It is important to carefully
your credit standing, essential to helping save and records. Electronically stored records store valuable papers which
money on income taxes owed, and provide an must be legible, readable, and accessible would be difficult or time-
indication of your financial progress for the period of limitations required (see consuming to replace. These
through life. Chart 1). It is important to back up electronic hard-to-replace documents
A systematic plan for keeping track of files in case of a computer malfunction. are ideally kept in a safe
important documents can save you hours of Regardless of how records are stored, deposit box or a fire-proof,
anxious searching for misplaced items. It can regular filing and review of documents is water-proof, burglar-proof
also help you reduce the amount of non- important. Making the decision on when home safe or lock box.
important papers cluttering your home. to discard old files is often difficult. Chart 1
Valuable papers can be sorted into two lists records and important papers typically • Electronically stored records
types: those needed for day-to-day use and needed and why they are important. The must be legible, readable,
those needed occasionally. Examples of chart also provides guidelines on how long and accessible for the period
valuable papers used frequently include a records should be kept. of limitations required. It
driver’s license, credit cards, health insurance Because every household may have is important to back up
card, bank account records, identification unique situations, there is space for electronic files in case of a
card, and special health documentation such additional records at the end. Due to the
computer malfunction.
as for allergies, disabling conditions, and danger of identity theft consider destroying
blood type. Examples of valuable papers used any documents you decide are outdated. It is • Wherever you live there is
occasionally include birth, marriage, and important to shred or safely burn documents always the risk of fires, floods,
death certificates; deeds; leases; contracts; which contain your name, address, Social and other disasters, and
insurance policies; military papers; divorce Security number, debit/credit card numbers, your home and important
decrees; Social Security records; and wills. or other sensitive financial information. documents could be totally
It is important to carefully store valuable Having your important papers organized
destroyed. Assemble a
papers which would be difficult or time- and accessible can help you in many ways.
‘Grab-n-Go’ emergency
consuming to replace. These include items If you are meeting with an attorney or
like original birth and marriage certificates financial adviser, you can prepare for the bucket, box, tote, backpack,
and property titles. These hard-to-replace discussion and perhaps reduce the total cost or electronic storage device
documents are ideally kept in a safe deposit of the consultation. If something should (USB ‘jump’ drive) to have
box or a fire-proof, water-proof, burglar- happen to you, it allows a loved one or available on short notice.
proof home safe or lock box. Other important trusted designee to readily locate durable and
records may be filed at home or carried in a health-care powers of attorney, insurance
wallet or purse. These records and papers are policies, medical records, estate plans, and
those needed for identification purposes or outstanding bills. See the eXtension web page ©Colorado State University
for emergency medical treatment. ‘Organize Your Important Household Papers’ Extension. 8/13.
(www.extension.org/pages/12475/organize- www.ext.colostate.edu
*N. Porter, Colorado State University Extension
your-important-papers) for
specialist, financial resource management; L. Kubin, more information.
Colorado State University Extension county director,
Larimer. 8/2013
Chart 1. Important papers: what, why, and how long to keep?
What? Why? How Long?
(Recommended)
Bank Records
Cancelled checks* Proof of payment of bills, tax claims* 3–6 years*
Bank statements Provides monthly/annual financial record 2 years
Deposit slips Comparison with bank statements 3–6 months
List of account numbers Information for family members, tax claims 3–6 years
Savings account statements While in force, plus 3-6 years*
Bills (current)
Unpaid bills To insure prompt payment, to track utility Until payment is documented (future bill
Charge account slips usage shows payment)
Utility bills
Church Records
Baptismal, confirmation, and Reference and information for family Permanently
membership records members
Citations
Record of traffic violations, accidents Reference and documentation 3 years after violation or accident
Credit Card Records
Credit card numbers Proof of transactions, credit, and contract Until all listed credit cards expire or are
Creditor’s contact information including terms canceled and destroyed
payment address For notification of creditors and While in force, plus 3-6 years*
Credit card term disclosure replacement in case of loss or payment Until paid or permanently for items in
Credit card statements notification is delayed personal property inventory
Photocopy of front and back of all cards Income tax deductions (non-consumer
credit)
Debt Records
Installment contracts Proof of terms of transactions, income tax While in force plus 3-6 years*
List of creditor names, payment and deductions (non-consumer credit) Review periodically, revise as necessary
billing error notification addresses, and Address for billing error notification may
other contact information be different than general addresses
Contracts, promissory notes, liens
Final payment documentation
Education Records
Diplomas For employment references and/ Permanently
Professional certificates or admission to training programs or
Professional licenses educational institutions
Transcripts
Farm or Other Business Records Analysis of farm or business enterprise Up to 6 years*
Income tax preparation
Financial Planning
Financial goals Written financial goals that are specific, Update as needed
Income/expense records measurable, attainable, realistic, and
Net worth statements timely
Account books Document progress toward goal
Credit reports achievement
List of financial advisers and contact Reference and comparison
information
Genealogy (family tree) Reference for family members Permanently
Health Records (family members)
Immunization records School admission, passport, reference for Permanently
Medical history and information family members
Organ donor card
Housing Records
Record of land transfer taxes, price paid, To calculate basis and capital gains or During ownership (plus 3-6 years after
closing, selling costs losses when property is sold, support taxable disposition of property)*
Title insurance policy income tax deductions and basis in
Deeds, mortgage residential replacements
Improvement receipts
Utility deposits
Chart 1. Important papers: what, why, and how long to keep?
Income and Employment Records
Employee benefit information, report Reference for income tax (including 6 years to permanently*
Pension records from prior employers annual IRS form W-2), Social Security, and Permanently
retirement contributions and benefits, work
history
Income Tax Records
Federal and state income tax returns, all Proof of filing and payment 3-6 years* or permanently
forms, and supporting data Support claims if return is audited
Annual W-2s, 1099 forms
Receipts for taxable items (interest &
dividends, records of capital gains,
losses)
Receipts for tax-deductible items
(interest paid, child and medical care,
donations, business expenses, real
estate and personal property taxes,
casualty losses)
Insurance Policies**
List of policy numbers Reference for kinds and amounts Until collected, expires, or all claims are
Names of insured, beneficiaries of coverage Records of payments, settled
Issuing company, agent, type, amount premiums, and claims Update as necessary
of coverage; copies of policies For periodic updating of coverage and/or
payment of claims
Investment Records
Certificates of deposit Proof of purchase, statement of earnings Until maturity, redemption, or sold
Investment certificates: stocks, bonds, and transactions Until annual summary is received (keep
mutual funds, real estate longer for tax purposes if statements show
Transaction slips (price, broker’s a gain or loss
purchase, sales statements) Update as necessary for tax purposes

Net Worth Statement For overall list of financial assets and Update annually
liabilities, tracks financial progress
and assists in future financial planning
decisions
Personal Documents
Birth certificates, adoption papers, For identification Permanently
marriage license, divorce papers, Reference for family members
alimony, child support awards, military To document events as needed
service, Veteran’s benefits, passports, Update passport every 10 years
Social Security documents, driver’s
license numbers, death certificates,
citizenship and naturalization papers,
copyrights, patents Ownership rights
Personal Property Inventory
List of items, description, serial Reference and information for family Revise annually (especially when new
numbers, price paid, date, estimated members, items are acquired or when items are sold
current value, photos, videos documentation for insurance claims or discarded
Appraisals
Vehicle titles and bills of sale Until vehicle is sold
Pet Records
Health and immunizations Identification, health Until death of pet or transfer of ownership
License records
Pedigree
Property Records
Property appraisals Proof of payment, tax preparation, future 3-6 years or permanently*
Easements reference
Mineral and surface leases
Chart 1. Important papers: what, why, and how long to keep?
Receipted Bills and Sales Slips (tax Proof of paid bills, support income tax 3-6 years*
deductible items) claims, proof of ownership for property During ownership**
insurance claims** Permanently if proof of purchase for item
on personal property inventory
Rental Records
Copy of lease, rental agreement Reference and information, proof of Until you move, all claims are settled,
Move in checklist condition security deposit is returned
Pictures showing move-in condition
Retirement and Pension Plans Reference and information, proof of While in force or fund is exhausted
employer-employee contributions,
payments and benefits received or
payable
Safe Deposit Box
List of contents in home file Reference and information for family Update as needed
members, documentation for insurance
settlement in case of loss (fire or theft)***
Subscriptions/Memberships
Titles, renewal dates Reference Update as needed
Membership details, renewal dates Determine renewal dates

Warranties and Guarantees

Owner manuals Reference and information, service, During ownership
adjustments of defects of equipment or
parts
Wills
Copy of will Reference, essential for settlement of Permanently, update as needed
Trust documents estate
Letter of last instructions Instructions for family members
Durable Power of Attorney Gives others power to make financial
Durable Power of Attorney for decisions
Health Care Gives others power to make medical
Medical Directives (living will) decisions when you are unable to make
List of locations of important decisions
documents, names, contact information Reference specifying end-of-life care,
of personal & legal advisers instructions to doctors, hospital, nursing
Burial lot deeds facility, hospice, home health agency, and
family members
Proof of ownership
Other (list)
Other (list)
Other (list)
*Note: The Internal Revenue Service has three (3) years to audit Federal income tax returns (or two years from the date the tax was paid, whichever
is later). However, this limit does not apply in ‘unusual’ cases. If an amount of income which should have been reported was not, and it is more than
25 percent of the income shown on the return, the period of limitation does not expire until six (6) years after the return was filed. There is no time
limitation when a return is false or fraudulent, or when no return is filed. (See IRS Publication #552, ‘Record-keeping for Individuals’).

While you do not have to keep all possible financial records for tax purposes, if audited you will want to have cancelled checks or other verification of
payment relating directly to entries on your tax return. In some cases, it is advantageous to keep records longer than the recommended period. For
example, when selling your principal residence and claiming the capital gains exclusion allowed by the IRS, documentation of original purchase price
and capital improvements may be required.

**Check with your insurance agent /broker for company requirements of proof of purchase and/or ownership of real and personal property in the
event an insurance claim is filed. (In some cases, payment receipts are required; in other cases a written inventory and/or photographs is adequate
documentation.)

***Contents of a safe deposit box usually are not covered by Federal Deposit Insurance Corporation (FDIC) insurance. Check with your insurance
agent/broker regarding coverage under your homeowner’s insurance policy or to determine if other coverage provisions are available.
 Wherever you live there is always the information including auto, health,
risk of fires, floods, and other disasters, medical, and home; important medical
and your home and important documents information such as medication and
could be totally destroyed. Prepare yourself immunization records; personal property
so you can minimize the impact. Assemble inventory with photos or videos; list of
a ‘Grab-n-Go’ emergency bucket, box, usernames and passwords for accounts
tote, backpack, or electronic storage device accessed on the Web. See fact sheet 9.156,
(USB ‘jump’ drive) to have available on Financial Emergency Preparedness for a
short notice. This emergency pack should form to complete with this important
contain hard copies or electronic images information. It is recommended that you
of important papers to quickly take when also have an extra set of keys for your
evacuating: credit and banking information; autos, home, safety deposit box or safe; and
driver’s licenses; birth certificates; insurance enough cash to purchase fuel for auto, food,
toiletries, and lodging for several days.

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cooperating. CSU Extension programs are available to all without discrimination. No
endorsement of products mentioned is intended nor is criticism implied of products not
mentioned.