How long should cancelled checks be kept

However, you might want to keep checks or statements relating to major life purchases -- such as your house -- indefinitely. The same holds true for checks written for home upgrades, which might come in handy if you sell the property.

Personal Finance Budgeting. By Jane Meggitt. The following recommendations will help you decide whether to hang on to your old checks or throw them away. Keep any check that was written toward a non-tax-deductible expense at least six months to one year. Some people prefer keeping them for three years. You will need these checks in case there is a dispute about a payment you made. Keep any check that was written toward a tax-deductible expense at least seven years.

For U. Other canceled checks, such as those for routine payments, can usually be discarded after three years — at most. Some, however, might need to be saved in order to document charges related to health care for insurance purposes, for example.

In addition, homeowners are often advised to retain canceled checks related to home improvement for as long as they own their property.

There are some disadvantages to having only a canceled check as documentation. In some cases, the check shows how much was paid and to whom, but it does not indicate the specifics of what was purchased. As a result, it can be difficult to justify certain business expenses and write them off for tax purposes.