'Secure Your ID Day' To Take Place Saturday

Monday, April 11th 2016, 6:16 pm
By: News On 6

Shred your documents for free as part of Secure Your ID Day this Saturday.

News On 6 and Shredders Inc will sponsor the event. It will take place from 1 p.m. to 3 p.m. on Saturday, April 16, 2016 at Shredders Inc located at 635 West 41st Street.

Here is a list of all the documents and how long you should keep them. Once you no longer need them, shred them to help prevent identity theft:

Taxes (returns, canceled checks/receipts, alimony, charitable contributions, mortgage interest and retirement plan contributions)
Seven Years
• The IRS has three years from your filing date to audit your return if it suspects good faith errors. 
• The three-year deadline also applies if you discover a mistake in your return and decide to file an amended return to claim a refund. 
• The IRS has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more. 
• There is no time limit if you failed to file your return or filed a fraudulent return. 

IRA Contributions
• If you made a non-deductible contribution to an IRA, keep the records indefinitely to prove that you already paid tax on this money when the time comes to withdraw. 

Retirement / Savings Plan Statements
From One Year To Permanently
• Keep the Quarterly statements from your 401 (k) or other plans until you receive the annual summary; if everything matches up, then shred the quarterlies. 
• Keep the annual summaries until you retire or close out the account. 

Bank Records
From One Year To Permanently
• Go through your checks each year and keep those related to your taxes, business expenses, housing, and mortgage payments. 
• Shred those that have no long-term importance. 

Brokerage Statements
Until You Sell The Securities
• You need purchase / sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time. 

From One Year To Permanently
• Review your bills each year. In most cases, when the canceled check from a paid bill has cleared the bank and been returned to you, you can shred the bill. 
• The exception is the bills for big purchases (jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc). These should be kept in an insurance file for proof of their value in the event of loss or damage. 

Credit Card Receipts and Statements
From 45 Days To Seven Years
• Keep your original receipts until you get your monthly statement; shred the receipts if everything matches the billing statement. 
• Keep the statements for seven years, if tax-related expenses are reflected on the billing statement. 

Paycheck Stubs
One Year
• When you receive your annual w-2 form from your employer, make sure the information on your stubs matches. 
• If it matches, shred the pay stubs. 
• If there is a mistake, tell your employer that you need a corrected w-2 (which is called a w-2c). 

House / Condominium
From Six Years To Permanently
• Keep all records documenting the purchase price and the cost of all permanent improvement such as remodeling, additions, and installations).
• Keep records of expenses incurred in selling and buying the property (such as legal fees and your real estate agent's commission) for six years after you sell your home. 
• It is important to hold onto these records because any improvements you make on your house, as well as expenses in selling it, are added to the original purchase price or cost basis. This adds up to a greater profit (also known as capital gains) when you sell your house. Therefore, you lower your capital gains tax.