This shows you the differences between two versions of the page.
Both sides previous revision Previous revision Next revision | Previous revision Next revision Both sides next revision | ||
lifestyle:expenses [2016/12/19 18:54] frater_secessus |
lifestyle:expenses [2020/05/15 15:01] frater_secessus [income tax ramifications] |
||
---|---|---|---|
Line 1: | Line 1: | ||
+ | > [Instagram] van life? 1-5K a month, unlimited rainy day fund (daddy’s wallet). | ||
+ | |||
====== How much does it cost? ====== | ====== How much does it cost? ====== | ||
Line 5: | Line 7: | ||
The general pattern is you can do things a cheap way, an average way, or an expensive way depending on your lifestyle. | The general pattern is you can do things a cheap way, an average way, or an expensive way depending on your lifestyle. | ||
- | | | + | | |
- | ^vehicle | what you own | what you buy | what you finance | | + | ^ vehicle |
- | ^build | minimal build | DIY build | factory build | | + | ^ build |
- | ^food | scratch cooking | cooking with some eating out | eating out | | + | ^ food | scratch cooking |
- | ^campsites | boondocking | public campgrounds | private campgrounds | | + | ^ campsites |
- | ^fuel | staying put | moving occasionally | always on the go | | + | ^ [[rv:fuel|fuel]] |
===== Less than $1000/month ===== | ===== Less than $1000/month ===== | ||
- | In this category you can find members of the [[http:// | + | In this category you can find members of the [[http:// |
+ | |||
+ | |||
+ | The [[camping: | ||
+ | |||
+ | * pay off all their debt before heading out | ||
+ | * camp only on free sites | ||
+ | * for longer amounts of time((perhaps up to the 14 day limit)) instead of driving regularly | ||
+ | * cook for oneself | ||
+ | * bring beer instead of buying it at a bar | ||
+ | * have cheap hobbies like reading or hiking instead of (for example) streaming premium services over expensive mobile data plans | ||
+ | |||
+ | ===== $1000 to $2000/month ===== | ||
+ | Modern working-age nomads usually get by in this range. | ||
+ | |||
+ | People who boondock in large Class A or fifth wheel RVs may fit in this category. | ||
+ | |||
+ | ===== more than $2000/month ===== | ||
+ | It is possible to spend way more than $2000/month but in general this category is inhabited by the comfortably retired. | ||
+ | |||
+ | Also in this section: | ||
+ | |||
+ | ===== federal income tax ramifications ===== | ||
+ | |||
+ | [note: | ||
+ | |||
+ | Living on small amounts of income may result in your owing no federal income tax "as long as your [earned] income is less than your standard deduction" | ||
+ | |||
+ | Even if filing isn't required, it may be a good idea since it starts the IRS 3 year statute of limitations timer on audits.((https:// | ||
+ | ==== unearned income ==== | ||
+ | |||
+ | |||
+ | V.A. disability payments are non-taxable ("not included in your gross income" | ||
+ | |||
+ | |||
+ | Social Security payments | ||
+ | |||
+ | > In most cases, if you //only// receive Social Security benefits then you would not have any [federally] taxable income and therefore would not need to file a tax return.((https:// | ||
+ | |||
+ | Having earned income in addition to SS income can result in [[https:// | ||
+ | |||
+ | |||
+ | |||
+ | |||
+ | ==== self-employment ==== | ||
+ | |||
+ | Taxes must be paid on self-employment income over $400 total, even though clients don't have to issue the 1099-MISC until payments reach $600.((https:// | ||
+ | |||
+ | |||
+ | |||
+ | ===== further reading ===== | ||
+ | |||
+ | * Fate Unbound - [[https:// | ||
- | ===== $1000 to $1500/month ===== | ||
- | Modern working-age nomads usually get by in this range. | ||
- | ===== more than $1500/month ===== | ||
- | It is possible to spend way more than $1500/month but in general this category is inhabited by the comfortably retired. | ||