What paperwork do I absolutely need to keep?? How long?

[Crazy8]

I am a paperwork horder - I have EVERYTHING from running my daycare for the last 13 years. But I am ready to dump it and want to know just how much I can dump!!

I did not file my 2014 taxes yet, will do it under extension soon so what year do I have to use as my "keep it" date? And what should I keep from those years? I have everything from sign in sheets to utility bills to every receipt for every item purchased.

[Thriftylady]

I use the rule of ten years for tax purposes. But Tom may have a better answer.

[TomCopeland]

records

I am a paperwork horder - I have EVERYTHING from running my daycare for the last 13 years. But I am ready to dump it and want to know just how much I can dump!!

I did not file my 2014 taxes yet, will do it under extension soon so what year do I have to use as my "keep it" date? And what should I keep from those years? I have everything from sign in sheets to utility bills to every receipt for every item purchased.

You must save your IRS records for at least 3 years after filing your taxes. Your state may require you to keep records for more than 3 years (which would include your federal records). So, if you filed your 2014 taxes by October 15, 2015, you will need to save your records until at least October 15, 2018. I'd recommend saving your federal records for 4 years.

If you are depreciating items, you need to save these records for as long as you are depreciating them, plus 3 years. So, if you bought a washer/dryer in 2014, save the receipt for 7 years (the life of the depreciation) plus 3 years, or 10 years.

[Crazy8]

Thanks! Any clue what the state of New Jersey requires if its different than the 3 years? Tried to google it and am not coming up with anything outside of the 3 years although read that you can be audited for up to 6 years.

[TomCopeland]

records

Thanks! Any clue what the state of New Jersey requires if its different than the 3 years? Tried to google it and am not coming up with anything outside of the 3 years although read that you can be audited for up to 6 years.

If you can be audited for 6 years in New Jersey, save your records for 6 years.