We ended last month and started this month worried.
Now, thanks to a partial client payment that we thought would never come (He’s made four payments over the last year. We keep thinking about cutting bait but haven’t yet.), another blogging gig, and selling a glass desk on Craigslist things are looking noticeably more rosy and it’s only the 8th!
I had a couple comments about people who under-report income. I’m wondering if the money we got from selling the desk is income. We bought it for more than it was just sold for. If a business did the same thing they would be able to report a loss and have that not count toward their taxes. But since I’m an individual, I’m not sure what my responsibility is with that.
Let’s Google It!
The H&R Block Blog talks about Garage Sales, “When determining if a sale must be reported as income it isn’t the dollar amount that matters or how it was sold, but whether the item was sold for more than it was originally purchased. “ So it looks like Capital Gains works the same way for individuals and businesses in this case. Cool. It also has some other situations. It was a good read.
The NOLO.com website (a free law resource website) says the same thing. They even refer to Craigslist as the online version of a garage sale. I can totally see it.
In fact, the only place that says it is taxable is Answers.com and with no source or backup other than a big Yes. Call me crazy, but I’m thinking the tax website and the law website answers are far more reliable. Has anyone ever gotten a reliable answer from Answers.com? I don’t know. Yahoo! Answers used to be crap but I’ve found amazing and detailed answers with sources cited more times than not these days and actually don’t cringe when I see it in the list of websites Google returns as potential places to visit for an answer to whatever question I have that day.
Also, I think it’s completely obvious but just in case someone thinks I should mention it…If selling things for a profit on Craigslist or eBay is your business, the answer is different. I was just looking into this because I wasn’t sure if I should be claiming it as income.
We already claim blogging income and the marketing work income and the other writing income, not just because one of my biggest financial fears is an audit, but also because it’s better for us financially. The more we make this year the higher our EIC (earned income credit) will be. You can’t get tax credits without owing taxes, my darlings. As for the government benefits I help pay for with my taxes, the taxes out of Mr. Brickie’s paycheck when he has one, and the taxes out of his unemployment…SNAP reduction isn’t dollar-for-dollar reduction. So even though I claim more income, depending on the amount, it might make no difference in my benefits, so, personally, it’s better for me to claim every penny. It’s just better for me – and my sanity – to be up front and let the calculations handle themselves.
As much as I would love to boost the income numbers for this year, claiming income (like the Craigslist sales) when you aren’t supposed to can be as problematic on your taxes as not claiming income you don’t have. I think. Don’t take my word for it because I’m not a tax expert. So as much as I would like to claim that as income, I don’t.
Bottom line: We have kicked one more large item out of the house! *happy Snoopy dance* Every time something leaves I feel physically lighter. All this stuff was weighing me down. In my life I have moved more than the average person (but less than a military family) and I can tell you that even if this is my “forever home” I still feel more comfortable if I can move everything I own in 24 hours or less. You just never know, and I like to be prepared. (Sounds paranoid when you put it in black and white like that. Yeesh.)
How Fast Things Change
We went from having $100+ dollars to make it through the month (which had me really worried because next week looks like it could be a work week and right now it’s a 2hr. round trip commute and a few dollars in tolls every day) but with other sources coming in we are looking at closer to $480 in the plus column for the month. I moved $100 into savings immediately and we are trying to live out of the “cash” envelope we have set up that we keep in a hidey hole like cartoon trolls. It’s cash from selling things on Craigslist. So we might be able to put even more in the envelope at the end of this month. It depends on how much he works and how much he needs to spend on gas and tolls and how much of that cash we need for food.
Now I’m super glad I do that monthly budget post because in retrospect everything makes more sense!
A lot of what we are going through is less about numbers and more about perspective. Sure, it’s about numbers because that’s where the feelings come from, but worrying about about the next month’s or even next year’s money is something a little (teeny weeny) bit more in our control.
I don’t know. I worry a lot. I don’t want to be a worrier, but it’s so difficult.
Also, here’s a teaser for a post that will happen next month. I think I’m going to re-think how Easter baskets happen this year to try and get more bang for my buck, too. One nice thing and a little basket of candy is what I’m thinking. I’m sorry, I’m totally just thinking out loud here. I saw this cool box of 24 pastels for $10 (including shipping!) and that plus some art paper would be so much more appreciated, I think. Not for all the kids, just for the one who wants to be an artist.
Really, I need to have things for these kids to do that do not involve an electronic screen. They already read, play with ponies and matchbox cars and use their imaginations and play outside. They’re not attached 24/7, but every one-more-thing that’s not electronic gives another option.
Maybe I can look up some YouTube art tutorial videos. Since, as we all know, YouTube is the sum total of all human knowledge. At least, I think it is. YouTube has helped us replace windows, choose paint colors, make cute hairstyles, cut my own hair, and about a hundred other things. It’s magic, I tell you, MAGIC!
Basically, if I have ten dollars to spend I’d rather spend it on art supplies than even more candy. But that’s just me being a Scrooge, I guess.
One of the Secret Benefits to Planning with Money
Okay, I’m putting this at the end because I don’t want everyone to know I just figured this out recently. I’ve done a monthly budget for years on the last day-ish of the previous month. This means a holiday was as much a financial surprise to us as it was to people who don’t budget at all.
Now that I’m trying to forecast finances into the future (With the power of my mind. Seriously, there has to be a better way.) I’m thinking about Easter NOW (over a month in advance – craziness) which means I can set aside enough for gift baskets for the other kids that we usually see at Family Easter. As long as we keep our cash close to our hidey hole and don’t spend crazy cash (and trust me, we have become experts in not spending money) it will be no problem to sock that extra money into the savings account and be able to orchestrate an Easter based on value and not cost and time and panic.
With a crazy, irregular, fluctuating income you just can’t do that whole, “I’ll put X amount of dollars a week into a savings account automatically!” thing that someone else’s bank might let them do. I would love to do that. I enjoy automating finances like you wouldn’t believe. Both because I’m lazy and because I remember when I worked for Allstate and we would look up accounts and the bills were paid by a service if the person was a celebrity most of the time and I thought, “Wow. You pay someone to pay your bills for you. That is a wealthy person.”
I will never hire someone to pay my bills for me but having them paid automatically says something about the level of financial security you feel that you CAN do that. Like, how cool would it be to have your bills auto-pay to your credit card every month and you just log in and pay the credit card bill once a month. That would be amazing.
It would be more amazing to do that with your debit card, but I get a little shaky and anxious even thinking of it because even though I know there will come a day when I have enough in my checking account I can pay bills automatically (I would love to use You Need A Budget for this. Someday, friends, someday I will use YNAB and it will be SO good.) that time is not now and the thought of anything coming out of my checking account I’m not prepared for gives me the chills.
I know that some of my readers are very religious and I completely respect that Easter is a very symbolic and important holiday. As an agnostic, I come at it from more of an Easter Bunny “doin’ it for the children” perspective, but I do not think my way is better than a religious way.
My thoughts about Easter are completely financial for my family but I completely respect a family dynamic that incorporates a “There is more to Easter than chocolate” belief system. If you wrote a post on your blog or just want to share what Easter means to you, feel free to share your thoughts or your link it in the comments.
I’d like to think of this as an interfaith blog. All faiths and even no faith are welcome. We all get out hope and inspiration in different ways from different places.
Have a wonderful day! Tomorrow I am hoping it’s warm enough and not-wet enough to take the kids to the park. Here’s hoping!