How long should I keep Financial Documents?

Your favorite jeans from high school, 900 receipts in the bottom of your bag, old boyfriends...If you’re like me, you may hold onto things way longer than you need to. You may be looking at your files and thinking, "how long do I need to hang on to this crap?" Here are some guidelines for how long you need to keep your financial documents:

Receipts, statements, invoices and supporting documents - 3 years
Employment tax records and payroll - 4 years
Income records - 6 years
Documentation for bad debt deduction - 7 years
Old tax filings and documentation - 7 years

If these kinds of documentation have reached their deadline, toss them like an old piece of fish. And don't forget to SHRED EVERYTHING to protect yourself from identity theft! It's time clear out space!