Tax season means paperwork—lots of it. W-2s, 1099s, receipts, and bank statements pile up fast. While some of these documents need to be saved for years, others are just clutter. Keeping unnecessary records increases your risk of identity theft and makes organization harder. That’s why knowing what to keep and what to destroy is key to protecting your information.
Secure paper shredding is the safest way to dispose of old tax records. Tossing sensitive paperwork in the trash leaves personal details exposed. Mobile shredding services ensure documents are destroyed beyond recovery. At RW Lone Star Security, we specialize in tax document shredding for individuals and businesses in Austin, San Antonio, and Waco. Below, we’ll break down what to keep, what to shred, and how to handle sensitive records.
Frequently Asked Questions
How long should I keep my tax returns?
The IRS recommends keeping tax returns for at least three years. If you file a claim for a loss or fail to report income, you may need them for up to seven years. Holding onto them longer won’t hurt, but anything beyond that can be shredded.
Do I need to keep supporting tax documents?
Yes, any documents used to file your taxes—like W-2s, 1099s, and receipts—should be kept for at least three years. If an audit happens, you’ll need these records to back up your return. Once that period passes, secure paper shredding is the best way to dispose of them.
What about old pay stubs?
Pay stubs should be kept until you confirm they match your W-2. After tax filing is complete, they can be shredded. If you’re self-employed, keeping income records for several years is smart.
Should I shred bank statements?
Most bank statements can be shredded after one year unless they’re needed for tax or legal purposes. If they contain sensitive information, hard drive destruction may be necessary for digital records.
Do I need to save credit card statements?
Unless needed for tax purposes, credit card statements can be shredded after one year. Keeping them longer increases your risk of fraud if they get into the wrong hands.
Can I throw away utility bills?
Monthly utility bills can be shredded after payment is confirmed. If they’re used for tax deductions or business expenses, keep them for three years. Mobile shredding services are a secure way to dispose of these records.
Should I keep medical records?
Medical bills and insurance statements should be kept for at least one year. If they’re used for tax deductions, hold onto them for three years. Once no longer needed, tax document shredding ensures they don’t expose personal details.
How should I dispose of old tax returns?
Once past their required retention period, old tax returns should be shredded. Secure paper shredding prevents identity theft and ensures confidential information stays protected.
What’s the best way to destroy digital tax records?
For digital records, deleting files isn’t enough. Hard drive destruction is the safest way to permanently erase sensitive data. RW Lone Star Security offers secure disposal services for outdated devices.
Can I use a home shredder instead of a professional shredding service?
Home shredders can handle basic paper disposal but often don’t destroy documents completely. Professional tax document shredding services ensure paperwork is shredded into tiny, unreadable pieces. Mobile shredding adds convenience by securely destroying records on-site.
What documents should businesses keep longer?
Businesses should retain payroll records for at least four years and tax-related documents for seven years. Contracts, financial statements, and employee records may need to be kept longer. Secure paper shredding helps companies manage document disposal safely.
When is the best time to shred old tax documents?
Tax season is a great time to review and purge old records. After filing, shred outdated documents to stay organized and reduce security risks. RW Lone Star Security offers year-round mobile shredding in Austin, San Antonio, and Waco.
Overview
Tax season doesn’t have to mean drowning in paperwork. Knowing what to save and what to shred makes tax time easier and keeps your information secure. Secure paper shredding protects against identity theft, and hard drive destruction ensures digital records are permanently erased. Whether you’re clearing out old tax returns or handling sensitive business records, RW Lone Star Security provides safe and efficient tax document shredding services.
