What Documents Should I Keep vs. Shred?

Key Takeaways: 

• Shred sensitive documents like anything with Social Security or account numbers to reduce identity theft risk.
• Know what to keep—store tax returns for 7 years, medical records for 10, and never shred key legal or financial documents.
• Organize for safety by backing up and filing important paperwork so it's accessible in emergencies and for legal or tax needs.

It’s easy to throw up your hands in exasperation when it comes to filing papers and documents at home, and you’re likely tempted to shred everything to be done with it. Still, keeping good records will reduce clutter, prevent identity theft, and reduce stress. No more searching for needed paperwork!

The principles of good record management for businesses also pertain to personal recordkeeping. They are accountability, transparency, integrity, protection, compliance, and accessibility. Consider the following principles (and time frames) when deciding what to keep or shred for your document management plan, as well as a handy checklist you can use to evaluate your document storage- Checklist for Key Documents.

Documents to Shred Immediately

The following are documents that you should shred immediately to protect your personal information:

• ATM receipts and reconciled paper bank statements
• Old credit card bills (after charges have been verified)
• Paid utility bills
• Expired warranties
• Canceled and voided checks
• Junk mail
• Store receipts (after the return period is over)
• Any statement with your credit card number, social security number, phone number, or other personal information

1. Anything With Your Social Security Number

One of the primary forms of identification for all United States citizens is your Social Security number. This number, assigned to you from birth, is the primary way many government entities verify your identity and appears on many types of documents including:

• Tax documents
• College forms
• Credit applications
• Payroll documents

You may need to hold onto many of these items for a specific length of time. The IRS, for example, recommends seven years for tax-related documents.⁴ When it comes time to dispose of them, make sure to shred them sufficiently so your full social security number cannot be read. A social security number can be used by others to seek out credit, obtain employment, or secure housing under your name.

2. Anything With an Account Number

Whether it is a credit card bill or a retirement account statement, anything that bears even a portion of an account number should end up in the shredder. While it may seem like there is not much someone can do with a partial account number, these documents often have other pieces of identifying information, such as full name and address. Combined with the partial account number, a skilled identity thief is off to a good start. Don't make it easy for them.

3. Mail With Significant Amounts of Personal Information

The more personal information on a piece of paperwork, the riskier it is to keep it intact. With enough personal information such as birth dates, full name, and a street address, a person could begin the process of identify theft. This also includes medical bills and records that you do not need. Some bills and forms provide a lot of information about medical conditions and prescriptions that you would probably want to remain private. 

4. Photos of You or Family Members

Not only can your photos be used to perpetrate identity theft, but they can also be used for other malicious purposes, especially with the rise in social media use. To raise money on crowdfunding sites, many people have used photos of other people's children to solicit donations or photos of others to make fake social media profiles.

5. Junk Mail

Yes, believe it or not, junk mail can contain a significant amount of personal information about you that identity thieves would love to come into possession of. You will often receive offers for loans or credit cards or even memberships to such clubs as AARP that includes bar coded information on the bottom. Most people will throw these items straight into the trash without a second thought as they have not provided any personal information. Unfortunately, when you are pre-selected for these offers, the company will create a barcode for this information that can be read when your form is sent in to accept the offer. Those adept at identity theft can unlock this information and gain more personal information about you than you would expect.

Lower your risk of identity theft and prevent your photos and personal information from being used for fraudulent purposes by shredding the documents above as soon as you have finished with them. If you aren't sure whether a document should be shred, it is best to always err on the side of caution.

Documents to Shred After 7 Years

While you should shred some documents immediately, some should be kept for about seven years to refer to their information.¹

Here’s a list of what to shred after seven years:

• Paperwork related to an estate settlement or a loved one’s death
• IRS tax returns (the IRS has three years for an audit, which can be extended to six years if an investigation is warranted)²
• Tax-related receipts
• Other tax forms and tax records
• W-2s and 1099s
• Investment records (shred them seven years after you’ve sold the securities or closed the investment accounts

Documents to Shred After 10 Years

You should keep some documents for reference for up to ten years, including:

• Medical records, such as hospital discharge papers, prescriptions, and medical tests
• Receipts for home repairs (keep receipts until you sell your home and need them to calculate potential capital gains taxes)
• Purchases with a warranty (i.e., major appliances)

Documents You Should Never Shred

Of course, there are some important documents you should never shred, such as:

• Legal records
• Birth certificates
• Social security cards
• Divorce decrees
• Death certificates
• Wills or living wills
• Marriage licenses or prenup agreements
• Passports
• Insurance documents
• Mortgage documents
• Vehicle purchase or lease documents (until you sell the vehicle)
• Stock and bond purchase documents (as long as you own them)

In addition to the lists above to help you decide which documents to keep or shred, the Federal Emergency Management Agency (FEMA) has compiled an Emergency Financial First Aid Kit for paper documents to have handy in an emergency.³ Storing these documents in a loose-leaf binder with plastic sleeves is an excellent way to keep them easily accessible:

• Legal records
• Birth certificates
• Social security cards
• Divorce decrees
• Death certificates
• Wills or living wills
• Marriage licenses or prenup agreements
• Passports
• Insurance documents
• Mortgage documents
• Vehicle purchase or lease documents (until you sell the vehicle)
• Stock and bond purchase documents (as long as you own them)

Once you know what documents to shred and systematically file the rest, you’ll be ready to file taxes, manage your budget, and easily locate the required papers in case of legal actions or audits. You can rest easy, knowing your paperwork is all in order—safe and secure.