Deduct $2500 From Monthly Spending?

[Rianne]

April 30th we'll receive the generous gift from Uncle Sam of $2500. Do we take that off the top of our monthly spending? It's not like we've earned it by CG or interest. It's not like profit from anything we've done. That would make our monthly expenses ~ $1000.



How are you accounting for this $$ ?

 

[frayne]

To me, it is simply a windfall and will go into savings, no accounting necessary.

 

[pb4uski]

Not sure I get your question, but in our case it goes into the pot (our checking account). It won't impact our immediate spending one iota... we spend what we want/need to spend.

Having that extra $$$$ might cause us to later splurge on something or order out more to support local businesses we want to see survive this crisis or goose up our donations to local organization who serve those in need.

 

[ivinsfan]

I think you are supposed to spend it and in theory if you have the months expenses covered buy something extra to prop up the economy. I don't if people will buy extra things with it, but I'd be interested to know how many posting here will do that.

I guess it depends on attitude as some people think of tax refunds as a wonderful gift to spend something on instead of the return of their own money. In our case we already had planned to buy a new vehicle but wouldn't buy one right now...in the last 6 weeks I've made 3 trips to get food at around 31 miles round trip. I'm not going to buy a new care to have it sit in my garage.

 

[f35phixer]

spend it on local companies, as cash! Restaurant, local HW store, mom and Pop stores.....

 

[Dtail]

To me, it is simply a windfall and will go into savings, no accounting necessary.

Same here.

 

[Big_Hitter]

How are you accounting for this $$ ?

"I don't know what you do with these numbers, I just give them do you"

 

[Big_Hitter]

Not sure I get your question,

c'mon bro, give her a ledger entry lol

 

[ivinsfan]

I want to know how the OP got the extra hundred bucks? I thought it was 2400 for a couple. Was there a secret code to get the bonus hundred

 

[Ronstar]

I account for mine as misc income.

 

[ivinsfan]

c'mon bro, give her a ledger entry lol

spend it quick and no ledger entry needed.. in one month and out the same month...magic money.

 

[Sunset]

I want to know how the OP got the extra hundred bucks? I thought it was 2400 for a couple. Was there a secret code to get the bonus hundred

I missed the bonus amount as well, but at least I got free shipping

 

[pb4uski]

c'mon bro, give her a ledger entry lol

Debit bank account, credit Other Income... haven't lost my touch.

Different story, but I remember once having to sign off on a $225 million entry.

 

[Which Roger]

spend it on local companies, as cash! Restaurant, local HW store, mom and Pop stores.....

This, or donate it.

 

[Badger]

This, or donate it.

+1 That seems like the best use. I have already planned and saved for our retirement. This money should be used for those who have lost their job and need to eat.



Cheers!

 

[RunningBum]

I use VPW and don't have hard and fast spending limits, just a target amount for the year. Spending more or less than that factors into my next year's target spending number, similar to how my investment gain or loss factors in. So my $1200 results in a slight increase in my spending target each year.

However, I helped someone with more than my stimulus amount. I was going to do it anyway, but I mentally applied the new money to take some of the sting out. This could put my spending over my target amount this year, and the market is also likely to reduce my year end investment net worth, so that will reduce my spending target for next year. But with VPW I spread out the impact of both good years and bad years over my remaining life span. I don't take a huge hit after a bad year.

 

[copyright1997reloaded]

April 30th we'll receive the generous gift from Uncle Sam of $2500. Do we take that off the top of our monthly spending? It's not like we've earned it by CG or interest. It's not like profit from anything we've done. That would make our monthly expenses ~ $1000.



How are you accounting for this $$ ?

Buy an ounce of gold and the rest (18-20) ounces of silver. Stick to super liquid coins (American Eagle, Canadian Mint). Put them away, hoping they never need to be used.

 

[wmc1000]

I just marked it as a transfer rather than income so it doesn't affect my monthly income tracking.

 

[RetireAge50]

Just went into the checking account and will be spent on whatever. I have an accounting degree but never used it.

 

[ITTN]

I think of it as a loan.

 

[SumDay]

We gave a bunch to charity, and the rest will go towards my HSA contribution for 2020.

 

[pb4uski]

I think of it as a loan.

Why a loan?

The IRS recently acknowledged that "there is no provision in the law requiring repayment" of a stimulus check. The way the law is written, stimulus checks are actually just advanced payments of a new "recovery rebate" tax credit for the 2020 tax year. If your check is less than your 2020 recovery rebate credit, the law specifically says you'll get the difference when you file your 2020 tax return next year. But the law is not so clear on what happens if your stimulus check is more than your 2020 credit. Thankfully, the IRS has provided guidance. You won't be required to repay any stimulus payment amount when filing your 2020 tax return, it says.

 

[bobandsherry]

Other income, done.

 

[ITTN]

Why a loan.
I know some day I'll be giving it back.

 

[pb4uski]

And just how do you "know" this? Crystal ball?