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Thread: getting $800

  1. #1
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    getting $800

    There was a bond that passed for our school district which gave a bonus to everyone! Thank you voters. So that means I get $800 in my next check. Totally unexpected, and while I live quite close to the edge at times I am fine. I just paid for retreats or deposits on retreats, and I think I can pay for all my retreats with money I already have. So now where to put this $800.

    I have a local credit union and a money market, I just looked at it and the interest rate is horribly low. I still want to keep this account since I also have my credit card at this credit union. In a pinch I can transfer to make a payment on time (no online payment options).

    Then I looked at the savings account with my secondary checking account with Ally. It is a no-brainer, the basic savings account has a 2.20% rate. I have all my laddered CD's there. If I need this for emergency then I can transfer it to the checking and use the card or checks.

  2. #2
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    We always had a discussion on "found" money. Do we have any debt causing interest? If yes, pay it off. If not, have we fully funded an accurate emergency fund, if yes, have we funded any reserve account for a future purchase we know is coming up? If yes, then we usually said well, half or more to savings and half to spending on like a vacation or something concrete. We tried really hard not to change our lifestyle and fritter it away.

  3. #3
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    1st remember that is is unearned income so will be taxed 40%. So you'll get $480. I would either: 1. put in savings for at least 30d. 2. Pay off or down a debt.

  4. #4
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    Where did the 40% come from? Is this your estimate of all the variety of taxes that would be normally taken out? How do you know what her %'s are? Maybe Zoe has already considered that?

    "Earned income is an IRS term for income that is obtained by participating in a business or trade. Earned income typically includes salaries and bonuses, wages, commissions and tips. Union strike benefits are also considered earned income, as are long-term disability benefits received prior to minimum retirement age."

  5. #5
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    Nope. Unearned income is taxed at 40%. It is not part of expected income like the hourly rate/tips. When i worked for a company that bonused us a part of net margin, it was a separate check and always 40% tax rate.

    Now, most of us get some of that back when we ultimately file our taxes.

  6. #6
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    Quote Originally Posted by Gardnr View Post
    Nope. Unearned income is taxed at 40%. It is not part of expected income like the hourly rate/tips. When i worked for a company that bonused us a part of net margin, it was a separate check and always 40% tax rate.

    Now, most of us get some of that back when we ultimately file our taxes.
    When I was gainfully employed I seem to recall my annual bonuses being subject to 38% with-holding, but that was not my tax rate on the money.
    "Things should be made as simple as possible, but not one bit simpler." ~ Albert Einstein

  7. #7
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    I will at least plan on not having the full 800, regardless of the details

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