Tax Refund Accounting

[W2R]

I treat my tax refund as a reduction in that year's spending.

But I'm pretty new to credit cards. I now have the Amazon card and the points give me reductions on my Amazon purchases. However I have been counting the full purchase price as what I spent. Maybe I should think about that.

 

[Danmar]

How do you treat the thousands of dollars of cash-back money from your credit card?

I treat it as a negative expense on my bank / CC fees line. Certainly not thousands as most of our charges go on travel points cards.

 

[Danmar]

I'm glad we have a system that lets you pay as you go - it's not really catching up after the fact since you pay 2 weeks after each quarter end and taxes are only owed quarterly. So you simply pay what is owed "on time".

It's a complicated system and I had to build some clever spreadsheets, but way better, IMO than having to way overpay taxes because you can't predict current year income.

Sounds better than ours as we pay 2 weeks before the end of the quarter. Can't catch up for previous shortfalls.

 

[audreyh1]

Sounds better than ours as we pay 2 weeks before the end of the quarter. Can't catch up for previous shortfalls.

2 weeks before the end of the quarter! Wow! Yeah, pretty much impossible if you have to pay taxes before you know your actual income!

 

[sengsational]

How do you treat the thousands of dollars of cash-back money from your credit card?

I started this thread/poll as kind of a joke, but some people have a significant amount of money in these things. I don't...just a few bucks from Discover and a few bucks from my Arrival card.