When to Shred Tax Records and W-2s

The general rule is to keep tax records for seven years, after which they can be safely shredded. However, this rule has some exceptions, such as keeping records for as long as you own property or securities.

It’s also important to consider the type of record you have. For example, if you have any records relating to the purchase or sale of a property, you should keep them indefinitely. The records may be needed to calculate capital gains tax when the property is sold.

Here’s a list of some common records and how long you should keep them before shredding them:

• Tax returns – Keep for seven years
• W-2s – Keep for seven years
• 1099s – Keep for seven years
• Bank and credit card statements – Keep for seven years
• Canceled checks – Keep for seven years
• Paycheck stubs – Keep until the end of the year
• Investment records – Keep for as long as you own the investment and for seven years after you sell it
• Property records – Keep for as long as you own the property and for seven years after you sell it
• Receipts for deductible expenses – Keep for seven years
• Business records – Keep for at least seven years

Note: These are general guidelines. Based on your circumstances, you should consult a tax professional for specific advice on what records to keep and for how long.

How to Shred Tax Records and W-2s

Shredding tax records and W-2s can be done in several ways. The most common method is to use a paper shredder at home or a professional shredding company. However, it’s important to ensure that the shredder you use is up to the task of shredding confidential documents. A cross-cut shredder is the best option, as it cuts the paper into small pieces that are difficult to reconstruct.

Another option is to hire a professional shredding company to shred your documents. This is a good option if you have many documents to shred, as professional shredding companies have high-capacity shredders that can shred large amounts of paper quickly and efficiently.

Why Shred Tax Records and W-2s

The main reason to shred tax records and W-2s is to protect your personal information. Identity theft and fraud are serious crimes that can result in financial loss and damage your credit rating. By shredding your tax records and W-2s, you can reduce the risk of these crimes.

Shredding your tax records and W-2s is also essential for ensuring your personal information remains confidential. This is particularly important if you run a business, as you may be legally required to keep certain records confidential.

At Jessica’s Shredding Team, we offer secure and reliable shredding services for individuals and businesses in San Leandro, CA. Contact us today to learn more about our shredding options and protect your sensitive information.