5 Tips for Keeping Tax and Other Financial Records

Knowing how long you should keep tax records and other financial documents can be confusing. Many people are so afraid to throw away papers that they store boxes of documents for decades. I have to admit that I used to be one of them!

This post will review five tips for keeping the right documents. You'll learn which financial records you can toss, what to save, and for how long.

Here's what you should know about tossing records and staying compliant with IRS regulations.

1. Keep digital copies of your filed tax returns

The IRS allows you to keep digital copies of your tax returns and the supporting documents for your income, deductions, and tax credits you claim each year. In general, individuals must keep tax returns and backup for a minimum of three years. That's because you have up to three years to file an amended tax return or be chosen for a tax audit.

However, you can claim a loss on certain investments for up to seven years. So, if you have complicated transactions, such as the purchase or sale of investments or real estate, it's wise to keep your tax records for seven years.

While keeping seven years of taxes might sound like a lot, the good news is that digital files are easy to maintain. So, scan your tax returns or ask your accountant for a digital copy instead of adding more paper to your filing cabinet.

Scan your tax returns or ask your accountant for a digital copy instead of adding more paper to your filing cabinet.

If you have a business, the IRS says you typically need to keep business tax records for a minimum of seven years. But they can be digitized, too.

You might use a free scanning app, such as Genius Scan, on your mobile device. It's loaded with image enhancement features and allows you to export documents as JPEG or multi-page PDF files to email, text, or cloud services such as Google Drive, Dropbox, and Evernote. If you have stacks of paper to scan, a traditional flatbed scanner with a document feeder can be a time-saver. Many inexpensive printers have built-in scanners that send files to your email.

2. Manage your digital files wisely

As you transition from paper to digital tax and financial records, you'll probably find that you only need a small drawer for your essential files, which we'll cover in a moment. And if you're like me, you'll feel great about decluttering and saving space in your home.

When you begin storing digital files, it's essential to keep them organized...

Keep reading on Quick and Dirty Tips

The Best Foods for Healthy Skin

Alyssa writes:

"I recently came across a paper in the International Journal of Molecular Science on nutrients to enhance skin health. I was surprised by how much evidence there seems to be for certain nutritional compounds and their effects on skin. However, as a non-professional, I was a bit lost as to how we might translate these research findings into recommendations for the best foods or supplements. Could you dedicate a podcast episode to it?"

Your wish is my command, Alyssa! 

The skin is not only the largest organ of the body, it’s also the most visible. Not surprisingly, many of us think of skin health primarily in cosmetic terms: does my skin make me look older or younger than my years?

But the health of your skin affects far more than your appearance. As with any organ, good nutrition helps your skin function at its best. As a bonus, the right nutrients can help keep your skin looking younger and fresher as well.

Fats for your face

One of your skin’s most important functions is to keep the outside out and the insides in. To that end, it needs to be highly elastic yet extremely durable. It needs to be breathable yet waterproof. It needs to allow nutrients in but keep pathogens out. All of these functions depend on the integrity of the cell membranes and healthy fats keep your cell membranes in good condition. In fact, people on extremely low-fat diets often have a lot of skin problems.

Monounsaturated fats, the type found in olives, almonds, and avocados, also help keep your skin healthy and youthful-looking. As a bonus, they also protect against heart disease and weight gain.

Both omega-3 and omega-6 fats are needed for healthy skin, but too much omega-6 (or too little omega-3) can create inflammation and accelerate aging. Because most of us get plenty of omega-6 already, focus on eating some foods rich in omega-3s each day. Flax, hemp, chia, and, of course, fish are all good sources of omega-3s.

Chia vs. Hemp vs. Flax

Nutrients for UV protection

The skin also needs to withstand daily doses of UV radiation from the sun, which accelerates aging and can lead to skin cancer. Antioxidants help out on both counts, shielding the skin from damage and helping to repair any damage that does occur. The easiest way to increase your intake of antioxidants is to focus on upping your intake of fruits and vegetables.

The healthy...

Keep reading on Quick and Dirty Tips

Are Peloton Bikes Worth the Hype?

It’s been a rough ride for the exercise equipment company Peloton. You’ve probably heard about the safety recall on its treadmill last spring after one child died and dozens of others were injured after being pulled under the treadmill. 

Then, in December, an episode of Sex and the City reboot And Just Like That… shocked viewers when the longtime character Mr. Big died after riding a Peloton bike. I’m not exactly the target demographic for the show, but my partner Farah and her 3 sisters are and Mr. Big's unexpected passing was such a big deal that an emergency meeting of the sisters from 3 different time zones had to be convened to collectively grieve. 

I was surprised to see that Mr. Big’s death was all over the news and caused Peloton stock to fall 11% the next day, which shows you that my partner is right about how out of touch I can be with these things. The drama for Peloton didn’t end there as demand for its exercise equipment has dropped substantially since the peak of the pandemic, resulting in its CEO stepping down and 2,800 employees being laid off last month. 

As a physical therapist and a fitness professional, I tend to be more attuned to what a piece of exercise equipment can actually deliver than the drama surrounding it. So Mr. Big kicking the bucket while cycling on a Peloton doesn’t really impact my opinion of cycling as a form of exercise or Peloton as a brand. 

Understandably, the media may have a real impact in shaping opinions about a product or service for those of us who don’t have an in-depth background or experience in fitness. After all, the wisdom of the crowds is a safe bet. But what if we could cut through the flack to look at the core of what Peloton has to offer?

How to Build the Perfect Home Gym

In this episode, I’m going to attempt to bypass the noise and look at the benefits versus the costs of owning a Peloton, with the goal of helping you decide whether a Peloton is worth it for you.

What Peloton offers

...

Keep reading on Quick and Dirty Tips

Take a Break with Your New Favorite Beach Read

Hello listeners! While I'm out on maternity leave, I wanted to share an excerpt from a novel that I think you'll love.

It's called Hideaway, and it's from the celebrated bestselling author Nora Roberts.

Hideaway is an emotional suspense novel set on a family ranch in Big Sur country, and tells a shocking tale of betrayal in one of Hollywood's royal families.

If you enjoy the excerpt, you can find Hideaway at your local bookstore, online at Amazon, Audible, or Bookshop.org, or wherever you buy your books.

Keep reading on Quick and Dirty Tips

How to (Safely!) Take Risks at Work

There’s a trail of companies behind us—from Polaroid to Blockbuster to Blackberry (and countless others my kids have never heard of)—that ultimately failed because they didn't innovate.

 

Once they found their formula for success, they took their eyes off the ball. And when they weren’t looking, crafty new business models emerged, taking risks that paid off.

 

Companies need to be innovating today more than ever—in ways big and small. And innovation requires risk-taking, which means that individual people need to be taking the risks. But taking risks is scary. What if you get it wrong?

 

We all know of someone who took a big chance and had a big fall. So how do you develop the comfort and confidence to take risks without worrying you’re putting your job on the line?

 

The good news is there are ways you can manage and mitigate risk, giving your great ideas their moment in the sun without leaving you feeling that unemployment is imminent. 

1. Begin with context 

All risks are not created equal. While there are many variations out there, one of the most critical is the informed versus the uninformed risk. As you’ve likely guessed, it’s the informed variety you should strive to take.

 

What makes a risk informed is effectively doing a bit of discovery. When you take the time to really understand the context—to define an opportunity at hand—then your risk suddenly becomes a solution to a problem rather than a shiny object.

 

Years ago, my brother had aspirations of starting his own business. But talk about a risky move!

 

So, he took a job with a recruiting firm that placed technical talent within organizations. It turns out technical talent and jobs come in many shapes and sizes. And my brother quickly realized there was an opportunity to specialize in a very specific brand of technical. He pitched his boss, his boss wasn’t interested, so my brother went out on his own.

 

Ten years later, my brother is the go-to guy when it comes to the particular niche he chose.

 

By the time he started his business, it no longer felt like a risk—a thing he wanted to do. It became a solution to a problem—a thing he felt compelled to do. And the thing that moved him into the zone of confidence was context. 

 

Maybe you lead a marketing team and there’s a new campaign you’ve been wanting to launch. Or you run a retail store and you have an inventive merchandising vision. Or you manage the front desk at a medical practice, and you’d...

Keep reading on Quick and Dirty Tips

How to Maintain Your Relationship After Becoming Parents

Hello listeners!

I'm taking a week off from the podcast this week, but I wanted to share an episode of another great show from the Quick and Dirty Tips podcast network with you.

It's called Relationship Doctor, and it's all about the science of what makes relationships work.

Whether it's the best way to support your partner or how to avoid a divorce in your fifties and sixties, your host Dr. Rachel Vanderbilt is your guide to modern relationship science.

This episode is all about how your relationship changes once you introduce a child to the mix, and how you can still support and care for your partner while you're busy caring for your baby.

If you like what you hear, you can find Relationship Doctor on Apple Podcasts, Spotify, or whatever podcast app you're using to listen to Project Parenthood!

Keep reading on Quick and Dirty Tips

How to Repair Your Relationship with Your Child

Hello listeners!

I'm taking a week from the Savvy Psychologist podcast, but I wanted to use this opportunity to share an episode of another show here on the Quick and Dirty tips network: Project Parenthood.

If you're a parent, you know how tough the job can be, and it can be especially difficult when you're focused on respectful parenting techniques.

The Project Parenthood podcast is here to help guide parents on how to maintain a healthy and respectful relationship with their children.

Every week, Dr. Nanika Coor gives parents actionable advice on everything from how to teach your child about body boundaries to how to nurture your child's self-worth.

This week, I'm sharing an episode about how to repair an adversarial relationship with your child. If you find it useful, you can subscribe to Project Parenthood on Spotify, Apple Podcasts, or wherever you're listening to me right now.

Keep reading on Quick and Dirty Tips