As we get older and our financial lives become more complicated, it can be challenging to know how long to keep financial records and paperwork and when it is safe to dispose of them. Some documents will need to be kept for your lifetime while others can be discarded after just one month. Here is a checklist that can help you determine what to save and what you can throw away.

Keep One Month

• ATM receipts and bank deposit slips can be thrown out as soon as you match them up with your monthly bank statement.
• Sales receipts can be tossed after you get your bank or credit card statement. However, keep these longer if you plan to return the item or need proof of purchase for a warranty.
• Credit card statements can be discarded once you review your statement unless there are tax-related expenses on them.
• Utility bills should be saved until the following month’s bill arrives showing that your prior payment was received. If you track utility usage over time, keep your bills for one to two years. If you claim a home office deduction, keep these bills for three years.

To avoid identity theft, be sure to shred anything you throw away that contains your personal or financial information.

Keep One Year

• Paycheck stubs until you receive your Form W-2 in January to check its accuracy.
• Bank statements (savings and checking account) to confirm your Form 1099s.
• Brokerage, 401(k), IRA and other investment statements until you get your annual summary (keep longer for tax purposes if they show a gain or loss).
• Receipts for health care bills in case you qualify for a medical deduction.

Keep Three to Seven Years

• Keep supporting documents for your taxes, including W-2s, 1099s, and receipts or canceled checks that substantiate deductions. The IRS has a period of three years to conduct an audit after you file a tax return. However, that period may be extended to six years if the IRS suspects you substantially underreported income. Keep documentation for seven years if you claim a loss from worthless securities or a bad debt deduction. If a tax return was not filed or a fraudulent return was submitted, the IRS has an indefinite period to pursue collection.

Keep Indefinitely

• Tax returns with proof of filing and payment. You do not have to keep them forever, but many people do since they provide a record of their financial history.
• IRS forms that you filed when making nondeductible contributions to a traditional IRA or a Roth conversion.
• Retirement and brokerage account annual statements.
• Defined-benefit pension plan documents.
• Savings bonds until redeemed.
• Loan documents until the loan is paid off.
• Vehicle titles and registration information if you still own the car, boat, truck or other vehicle.
• Insurance policies.
• Warranties or receipts for big-ticket purchases to support any warranty and insurance claims.

In addition to the above list, personal and family records like birth certificates, marriage license, divorce papers, Social Security cards, military discharge papers and estate planning documents including powers of attorney, wills, trusts and advanced directives. Store these important documents in a fireproof safe or in a safe deposit box.

Digitize Your Documents

To reduce your paper clutter, consider digitizing your documents by scanning them and converting them into PDF files so you can store them on your computer and back them up on a cloud storage service. You can also reduce your future paper load by switching to electronic statements and records whenever possible.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

The Energy Efficient Home Improvement Credit encourages homeowners to make qualified energy efficient improvements. Qualified improvements include exterior doors, exterior windows and skylights, and insulation or air sealing materials. Exterior doors can qualify for a credit of $250 per door up to a total of $500 when more than one is installed. New windows and skylights qualify for 30% of costs up to $600. Insulation or air sealing materials are qualified for a credit of 30% of costs up to $1,200.

The total credit is generally limited to $1,200 for a tax year, with some items qualifying for an additional $2,000 credit. The $1,200 could also include a home energy audit with a value of up to $150.

The additional $2,000 credit is for electric or natural gas heat pump water heaters, heat pumps or biomass stoves or boilers. If a taxpayer qualifies for both the $1,200 credit and the $2,000 credit, the total Energy Efficient Home Improvement Credit could reach $3,200.

There are specific requirements for most of the credit items. Doors and skylights must meet Energy Star most efficient certification requirements. For the $2,000 credit, electric or natural gas heat pump water heaters, heat pumps or other such items must meet the highest efficiency level established by the Consortium for Energy Efficiency (CEE).

The taxpayer must install the energy efficient property in a home that is the taxpayer’s principal residence in the United States. The installation may also be claimed for improvements made if the owner is a tenant-stockholder in a cooperative housing corporation or a condominium where the taxpayer holds a proportionate share as specified by the management association. The Energy Efficient Home Improvement Credit is not refundable and may not be carried forward.

A new requirement in 2025 is that the items must be produced by a qualified manufacturer and there must be a product identification number (PIN). The PIN is provided by the manufacturer and must be included on the tax return. The PIN is a 17-character number assigned by the qualified manufacturer.

Taxpayers should keep records "sufficient to establish the amount of the credit on their tax returns."

The Residential Clean Energy Property Credit is a 30% credit for the installation of qualifying energy efficient property, with no lifetime credit limit. This may include solar panels, solar water heaters, qualified fuel cells, small wind energy units, geothermal heat pumps or battery storage.

U.S. homeowners that install these various energy production and storage items will qualify for a 30% credit. The geothermal heat pump must qualify under the Energy Star program. A qualified battery storage property must have a capacity of 3 kilowatt-hours or greater.

The Residential Clean Energy Property Credit may reduce the taxpayer’s tax liability and may be carried forward to future years. It is a non-refundable personal tax credit. The taxpayer may use IRS Form 5695, Residential Energy Credits to claim the credit for 2025.

Editor's Note: It is expected that there will be a comprehensive tax bill in 2025. Some of these energy credits may be modified or changed after January 1, 2026. Many homeowners will decide to take advantage of the Energy Efficient Home Improvement Credit or the Residential Clean Energy Property Credit in 2025.

My parent has always saved a large number of items. Since my other parent passed away, the clutter has become overwhelming. Do you have suggestions on how I can help?

Unfortunately, hoarding disorder or clutter addiction is a problem that has become increasingly common in the U.S. It impacts approximately 6% of individuals age 65 or older. The disorders can vary from moderate clutter to severe hoarding classified as a mental health concern, like obsessive-compulsive disorder (OCD). Here is what you should know along with some tips and resources that can help your parent.

Why People Hoard

The reason most people hoard is because they have an extreme sentimental attachment to their possessions or they believe they might need their items at a later date. Hoarding can also be a sign that an older person is depressed, anxious or showing early symptoms of dementia.

Common problems for individuals who live in excessive clutter are tripping, falling and injuring themselves, as well as having difficulty keeping track of bills and medications. They may also encounter environmental hazards like mold, mildew, dust and the presence of insects and rodents.

What to Do

The Institute for Challenging Disorganization (ICD) offers a free resource known as the “Clutter to Hoarding Scale,” an assessment tool to help you gauge your parent’s situation. You can download it by visiting ChallengingDisorganization.org, navigating to the “Resources & Tools” tab and then clicking on the “Clutter-Hoarding Scale”.

 There are several things you can do if you find that your parent exhibits a moderate cluttering problem. Begin by having a conversation with them, expressing your concern for their health and safety and offering your assistance to help them declutter. If they accept, most professional organizers recommend decluttering in small steps. Take one room at a time or even a portion of a room at a time. This will help prevent your parent from feeling overwhelmed.

Before you start, designate three piles or boxes for your parent’s belongings – one pile is for items they want to keep and put away, another is for items they want to donate and the last pile is the throwaway pile. You and your parent will need to determine which pile to place things in as you work. If there is a struggle with multiple sentimental items that are not being used, suggest keeping only one item for memory’s sake and give away the rest to family members who will use them. You will also need to help your parent set up a system for organizing the items kept and new possessions. 

Find Help

If you need help with decluttering and organizing, consider hiring a professional organizer who can come to your parent’s home to help you prioritize, organize and remove the clutter. The National Association of Productivity and Organizing Professionals (NAPO.net) and the ICD (ChallengingDisorganization.org) both offer directories on their websites to help you locate a professional in your area.

If your parent’s excessive clutter significantly impacts their daily functioning, or is causing financial difficulties, health problems or other issues, you will need to seek professional help. Therapy or antidepressants may help with issues such as anxiety, depression and other feelings that may underline hoarding tendencies. Be sure to have your parent consult their primary physician to determine if these options are appropriate for them.

To locate assistance in your area, search online for companies that provide free education, counseling and referral services for older adults and their families managing excessive clutter. Use keywords like “organizational management” to locate organizations near you. For help with extensive cleanup needs, consider searching online for specialized cleanup local companies that primarily focus on hoarding and clutter clean up.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.