The guide below will help you determine how long each document should be kept. This is not a complete list, if you have questions on a certain document, consult your tax advisor.

Documents to Keep ‘Til the End of Time

• Birth and death certificates
• Social security cards
• Pension plan documents
• ID cards and passports
• Marriage license
• Business license
• Military discharge papers
• Any insurance policy
• Wills, living wills, and powers of attorney
• Vehicle titles
• Loan documents
• House deeds and mortgage documents
• House records: cancelled checks for major home improvements and maintenance (for the length of home ownership)
• Medical records
• Photos or video tapes of valuables
• Tax return copies and worksheets
• Income tax payment checks
• Annual IRA or other investment contribution statements, pension/profit-sharing informational returns

Keep physical copies of these documents in a safe place, such as a safe deposit box or a fire-proof safe—one single location that’s easy to grab in case you need to evacuate—and also make digital copies for off-site backup.

Documents to Toss As New Ones Arrive

The paper parade is endless. The good news is with every new investment statement, renewed insurance policy, or many other regularly recurring documents, you can keep just the latest version. Specifically, you can shred these documents when you get the new one:

• Monthly or quarterly investment statements (for annual statements, see the next section)
• Social security statements
• Annually renewed insurance policies

Documents to Keep Until a Specific Time or Event

• Credit card receipts: After you’ve reconciled them with your monthly statement—unless it’s needed for a warranty or tax filing. In those cases, keep the receipts with the product manual until the warranty expires or with your tax papers.
• Bank deposit or withdrawal slips: After you reconcile with your monthly statement
• Credit card and bank statements: 7 years if you need them for tax support, otherwise one year.
• Annual investment statements: Until you sell the investments, then hold them for 7 years after you sell with your tax papers.
• Paycheck stubs: After reconciling with your W-2 form and have paid your taxes
• Health explanation of benefits (EOB): 1 year
• Utility records: At least 3 years
• Taxes and supporting records (e.g., tax-related medical bills, donations, etc): The common recommendation is 7 years, because that’s how far back the IRS usually goes if you’re audited.

This list is not a full listing of everything. If you are unsure about how long to keep a document. Ask your tax advisor.

If you do not have a tax advisor. Capital Advisory Group, Inc. is here to answer your questions.

If you have a business click here to read about what you should keep for your business.

Questions about taxes could come up any time of the year. Whether it’s about tracking a refund or paying a bill, taxpayers can find answers to their questions on IRS.gov. Here are some of the most popular IRS tools:

• IRS Free File. Taxpayers who filed an extension can use IRS Free File to prepare and e-file a federal tax return. Free File is available at no cost for anyone with income below $66,000. Free File is available through Oct. 15 to file a 2017 tax return. IRS Free File is available through IRS.gov or the IRS2Go mobile app.
• Direct Deposit. Direct Deposit is the best and fastest way for taxpayers to get their tax refund electronically deposited for free into their financial account. Combining direct deposit with electronic filing is the fastest way for a taxpayer to receive their refund.
• Where’s My Refund? Taxpayers can use “Where’s My Refund?” at IRS.gov or the IRS2Go mobile app to check the status of a refund within 24 hours after the IRS receives the e-filed return or four weeks after a mailed paper return. The IRS2Go app is free and available on Google Play, the Apple App Store or Amazon App Store.
• Paying a Tax Bill. IRS Direct Pay is free and taxpayers can pay directly from a checking or savings account. They can choose to receive email notifications about their payments each time they use Direct Pay There are five simple steps to pay in a single online session and it’s also available with the IRS2Go mobile app. Other payment options are available at IRS.gov/payments.
• Tax Account Information Online. At IRS.gov/account individual taxpayers can view their balance and payment history. They can also pay with their bank account, a debit or credit card or apply for an installment agreement. They can view, print or download tax records, and view their most current tax return information as originally filed. First time users must authenticate their identity through the Secure Access process. Taxpayers who already have a user name and password from Secure Access for their tax account, Get Transcript Online or Identity Protection PIN, may use the same username and password.
• Online Payment Agreement. Taxpayers who can’t pay their taxes in full can apply for an Online Payment Agreement. Using the Direct Debit payment plan option is a lower-cost, hassle-free way to make monthly payments.
• Interactive Tax Assistant. Taxpayers can use this tool to find answers to their tax questions. This tax law resource asks a series of questions and provides instant answers on a variety of tax topics, including general filing questions, deductions, credits and income.
• Tax Map. The IRS Tax Map integrates web links, tax forms, instructions and publications into one search result. Taxpayers can quickly find forms, publications, frequently asked questions and news by topic.

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IRS Tax Reform Tax Tip 2018-143

September 13, 2018

Retirees should do a Paycheck Checkup to make sure they are paying enough tax during the year by using the Withholding Calculator, available on IRS.gov. The Tax Cuts and Jobs Act, enacted in December 2017, changed the way tax is calculated for most taxpayers, including retirees.

Because of this law change, retirees who receive a monthly pension or annuity check may need to raise or lower the amount of tax they pay in during the year. The easiest way to do that is to use the Withholding Calculator or read Publication 505, Tax Withholding and Estimated Tax. Though primarily designed for employees who receive wages, this online tool can also help those who receive pension or annuity payments on a regular schedule, usually monthly or quarterly.

Taxpayers who do not choose to have taxes withheld from their income should make estimated tax payments. This income includes pension and annuity income, and the taxable part of social security benefits. Estimated tax payments are due quarterly. The remaining due dates for 2018 payments are Sept. 17, 2018 and Jan. 15, 2019. Taxpayers can pay their taxes anytime throughout the year as long as they indicate the tax year and where to apply the payment. They can visit IRS.gov/payments to explore all IRS payment options.

Here are some things retirees should know about their withholding and using the calculator:

• Like employees, retirees can use the calculator to estimate their total income, deductions and tax credits for 2018.

• When using the Withholding Calculator, retirees should treat their pension like income from a job by entering:
  • The gross amount of each payment
  • How often they receive a payment, such as monthly or quarterly
  • The amount of tax withheld so far this year

• Before using the calculator, users should have a copy of last year’s tax return. In addition, knowing or having a record of the total federal income tax withheld so far this year will also make the tool’s results more accurate.

• Based on the taxpayer’s responses, the Withholding Calculator will recommend the number of allowances a pension recipient should claim. If the number is different from the number they are claiming now, they should fill out a new withholding form. If claiming zero allowances still doesn’t cover their expected tax bill, the tool will recommend asking their payor to withhold an additional flat-dollar amount from each pension payment.

• Pension recipients can make a withholding change by filling out Form W-4P, and giving it to their payor. The IRS urges retirees to submit Forms W-4P to their payors as soon as they can. This gives payors time to apply withholding changes to as many payments as possible this year.

• Because of the limited time left in 2018, some retirees may be unable to adequately cover their expected tax liability through withholding. In that case, a taxpayer could instead make an estimated or additional tax payment directly to the IRS.

More Information:

Publication 505, Tax Withholding and Estimated Tax

Social Security Administration

Tax Reform

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