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lifestyle:expenses [2020/05/15 15:02] frater_secessus [federal income tax ramifications] |
lifestyle:expenses [2020/10/11 19:48] |
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- | > [Instagram] van life? 1-5K a month, unlimited rainy day fund (daddy’s wallet). | ||
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- | ====== How much does it cost? ====== | ||
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- | There are many answers to this question, and the only real answer is what it costs YOU to live a nomadic life. | ||
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- | The general pattern is you can do things a cheap way, an average way, or an expensive way depending on your lifestyle. | ||
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- | | ^ cheap ^ average | ||
- | ^ vehicle | ||
- | ^ build | minimal build | DIY build | factory build | | ||
- | ^ food | scratch cooking | ||
- | ^ campsites | ||
- | ^ [[rv: | ||
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- | ===== Less than $1000/month ===== | ||
- | In this category you can find members of the [[http:// | ||
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- | The [[camping: | ||
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- | * 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 | ||
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- | ===== $1000 to $2000/month ===== | ||
- | Modern working-age nomads usually get by in this range. | ||
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- | People who boondock in large Class A or fifth wheel RVs may fit in this category. | ||
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- | ===== 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. | ||
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- | Also in this section: | ||
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- | ===== federal income tax ramifications ===== | ||
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- | [note: | ||
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- | 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" | ||
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- | 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:// | ||
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- | [[lifestyle: | ||
- | ==== unearned income ==== | ||
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- | V.A. disability payments are non-taxable ("not included in your gross income" | ||
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- | Social Security payments | ||
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- | > 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:// | ||
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- | Having earned income in addition to SS income can result in [[https:// | ||
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- | ==== self-employment ==== | ||
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- | 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:// | ||
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- | ===== further reading ===== | ||
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- | * Fate Unbound - [[https:// | ||
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