During tax season, it’s essential to have a proper plan in place for organizing and disposing of your financial records. With the right shredding strategy, you can reduce clutter, protect your personal information, and comply with the law. Here’s everything you need to know about shredding for tax season.
Why is shredding important during tax season?
As the tax deadline approaches, it’s common to have a lot of documents containing sensitive information lying around your home or office. This includes tax returns, W-2s, 1099s, and other supporting documents. If these documents fall into the wrong hands, they can be used to steal your identity, commit fraud, and even take out loans in your name.
It’s important to remember that identity theft doesn’t just happen online. Thieves can also gain access to your personal information by going through your trash or stealing your mail. By shredding your private documents, you can reduce the risk of someone finding your personal information and using it for malicious purposes.
How long should you keep tax documentation before shredding it?
The length of time you should keep tax documentation varies depending on the type of record and the purpose for which it was created. In general, it’s a good idea to keep tax records for at least seven years. This will ensure that you have the information you need in case of an audit or other legal dispute.
Here’s a breakdown of how long to keep different types of tax-related records:
- Tax returns: Keep a copy of your tax returns indefinitely, or until you no longer need them. If you’re worried about identity theft, consider shredding your returns after seven years.
- Receipts and supporting documents:Â Keep receipts and other supporting documents for at least seven years. This includes receipts for charitable donations, medical expenses, and other deductions.
- W-2 forms: Keep W-2 forms for at least four years after the tax year in which they were issued.
- 1099 forms: Keep 1099 forms for at least four years after the tax year in which they were issued.
Should old tax returns be shredded?
Yes, old tax returns can be shredded. However, it’s a good idea to keep a copy of your tax returns indefinitely, or until you no longer need them. This is especially important if you’re worried about identity theft or if you may need the information for a future legal dispute.
What records should be kept for seven years?
There are several types of records that should be kept for at least seven years, including:
- Receipts and supporting documents for deductions and tax credits
- Bank and investment statements
- Records of real estate transactions
- Retirement account statements
How should you securely shred your documents?
When it comes to shredding your documents, it’s important to ensure complete destruction with no chance of data recovery. Hiring a NAID certified, professional shredding service is the easiest way to ensure your documents don’t end up in the wrong hands
If you’re looking for a secure and reliable shredding service, look no further than KelShred. KelShred is NAID certified and provides secure shredding services to homes and businesses, both on-site and off-site.
KelShred is dedicated to providing the highest level of document security by providing a Certificate of Destruction after each shred. Give us a call or contact us at www.KelShred.com today.
