My plan was to write a post detailing how I organize my papers, bills, files, and records today, but in an attempt to limit my computer time I tried setting up some controls. While trying to set up the controls I managed to completely lock myself out of the computer. So, after spending two hours trying to remember my password, and another two hours on the mac forums learning all sorts of technical jargon that finally ended in a reinstall of the operating system and resetting my password, I have my computer back.
But, I didn’t have time to finish my paper clutter post, so I’ll have to post it tomorrow.
Plus, isn’t everyone frantically finishing up their taxes tonight? 
According to the IRS website:
You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support items shown on your return until the period of limitations for that return runs out.
Read the comments below for an important tax tip from one of my readers and a CPA.
And while we are talking about paper clutter, one piece of paper you should never shred is the one with all your passwords on it. What, you don’t have all your passwords written down somewhere? I didn’t either, and it cost me four hours! How much cleaning and decluttering could I have accomplished had I been a little more organized with my passwords?
What about you, do you have your passwords stored in a safe place?
purple moose says
Oh, you’re kidding, we have to keep tax forms forever?!?!?!?! I have consistently read 7 years. Oh no!!
Siri says
I have a spreadsheet with most of our passwords on it. I do use a standard password so if it’s the standard one I don’t always write it down. But if they require any variation, I write it down because how in the world do you remember all of them? Plus my lovely Firefox remembers them all for me so I never have to type them in myself. If someone finds a BETTER way to store passwords, I would like to know it. This can’t be the best way (although apparently better than what you’d been doing!)
TheHappyHousewife says
Exactly! I did use the same password (or a variation) for everything, then last year my blog was hacked, so I realized that every other account I had was vulnerable to attack because my password was compromised. I started using different passwords… but I guess I got too crazy because I totally forgot what my admin password was to my computer!
Toni
Saving Money In Real Life says
We keep all of our passwords written down in a central place, and we have a copy of it in our safe. We try to keep the passwords consistent but some places have stricter limitations than others (for example, “must have 1 number + 1 letter” or “must be 6 digits long”) so we do have various passwords that are hard to keep track of.
I think if our house were on fire, that password sheet would be the first thing I’d take after my family! 🙂
Mary Ann Bernard says
Gladly, you are mistaken about the tax returns. Although you did correctly quote the IRS website, you left out an important piece of information.
“…until the period of limitations for that return runs out…”
The PERIOD OF LIMITATIONS for individual tax returns (ie. personal, 1040 series), is three years from the due date, or date actually filed, whichever is later.
Example: your 2006 tax returns were due on April 15, 2007. You must keep all supporting documentation for 2006 until tomorrow, April 15, 2010. After tomorrow, the statute of limitations runs out for the IRS. If they have not notified you of an open issue on your return for 2006 by then, it is too late for them. It is legally closed, and you can shred away.
If you filed your 2006 tax return late (whether on an extension with the IRS or just late), the IRS has three years from the date they received your completed return. So, if for some reason you didn’t file your 2006 taxes until October 15, 2007, the IRS has until October 15, 2010 to commence an action on your return.
For your 2009 taxes, which are due tomorrow, you must keep your records until April 15, 2013. (Unless you are going on extension, then keep track of the date you actually file them.)
Hope this clears the issue up!
P.S.: my credentials: I’m a CPA and tax preparer.
TheHappyHousewife says
Mary-
Thanks for the information. I was kidding when I said you could never throw them out, but I don’t think anyone got my joke! Oh well, some things don’t translate well in writing, and I guess sarcastic IRS remarks are one of them!
In all seriousness, thanks for the extra information, it was helpful for me, and I am sure many of my readers.
Toni
Deborah says
The statute of limitation runs generally three years from the date you file your return. Unless you do something shady, like not reporting a big chunk of income or claiming losses on a worthless security, then it’s extended up to 7 years.
beki says
Taxes are due tomorrow??? 🙂
Nancy says
While I’m sure Mary Ann has the up-t0-date information, it’s important to remember that your home’s depreciated basis, for example (if you are like me and had a home daycare business) may be affected by events many years ago. I would suggest that if you have a home-based business, particularly one that involves (involved) depreciation of assets or a home office deduction, that you maintain these records for as long as you own your home.
Jolyn@Budgets are the New Black says
I don’t know that it’s a safe place, but my passwords are all in one place. I type them and print them out on a small piece of paper and have done so for years. When folded, the paper is smaller than a credit card (though thicker). I do not use the same password for everything, so I don’t even try to remember them all. As I come up with new passwords, I hand write them on the folded paper that I keep handy in my workspace. Once the paper has become so worn from being folded and unfolded, I print out a new one after adding the additional .com’s and passwords I’ve added since the last time I’ve printed out the list. I also now have them typed up alphabetically; makes it so much easier if I’m looking up a website to see if I already have a password for it. I can’t tell you how many times I’ve gone to register at a website, put in my email, and got an alert that they already have a registration for this email. I look at my list — sure enough, it’s been a couple of years since I last used it, but I still have the password.
I’ve had this list system for years and at the times when we’re moving, for instance, I treat it like it’s gold. I’ll store it in my wallet with my ID and bank cards so I always know where it is. If I ever lost it, I have my hard copy on my external hard drive. It doesn’t include new ones that I may have added, but it’s better than nothing.
Yes, I suppose someone could steal this. Someone could also steal my checks or my credit cards and use them, too. And I don’t have my email on there anywhere which is what I use as the user name whenever possible, so for most sites they would only have half the information. I also like to think, though it’s morbid, that if anything happened to me, someone else could use this list to gain access to important banking information, etc. I do all the finances — I’m sure my husband couldn’t tell you our online banking log-in IDs and passwords if his life depended on it!
dawnz says
I have a 3-ring binder with simple notebook paper that I keep passwords in. I also have some stored in my online mailbox, but those are ones that I don’t care if I lose because they’re sites I don’t go on much. The binder is stored by the computer and gets pulled out at least once a week. I also store important computer related papers in plastic sleeves in it. How to’s for the computer and such. 🙂
cheryl says
i never sweat tax season because 1) we are low income and get a lot back (never pay in), 2) we do not have a home or children so we dont have to itemize, and 3) the entire tax refund goes towards debt so we can get ahead on our Dave Ramsey Plan. this makes things pretty easy.
as for passwords and previous tax returns: returns are all printed out and also stored electronically in a password protected file. all our passwords are also on a hard copy as well as an electronic copy in the same password protected file. hard copies are stored in the safe along with a disc copy just in case. can you tell im neurotic about back-up plans?!
Leah says
We have used RoboForm for about 7 years for ALL of our passwords and have never had a problem with hacking.
Lynn says
I keep my passwords on a program called “password keeper” on my blackberry phone. I also still make up phone numbers and or names of people in an address book. the passwords are hidden in the phone numbers, or contact name, or address. Silly code, but it helps me. never thought to put a copy in my safe, though. will be doing that, too.
Rebecca says
I keep my computer password protected, only my husband or I can get on our account. We have the kids’ accounts password protected and I have put parental controls on theirs. We are pretty protective of what our kids get into and the computer is in the kitchen so no one can hide what they are doing but it makes me feel good that I have protected them further. All that to say, I never lock myself out of the computer because I use the password alot thru the day to jump on and off. I may forget my passwords to other sites and such but I can get on and try to get back into stuff.
ps. It also pays to protect your kids. Someone called my house last summer and accused one of my daughters of using Facebook to really slam her and it was nice to be able to refute it. Left her quite speechless.
Colleen says
I have used http://www.lastpass.com for the last year and I LOVE IT!!! It keeps all my passwords in one spot and I can access them anywhere with my user and ONE master password….check it out and you will never again write passwords down again!!