Comments on: Budget for the recession now

By: Why You Should Never Put Credit Cards Before the Mortgage Payment | Frugal Dad

Wed, 20 Aug 2008 10:59:57 +0000

[...] are too many stories out there about homeowners who kept their credit cards current as they fell behind on their homes, ultimately leading to foreclosure. Credit card collectors are [...]

By: leann

leann — Thu, 19 Jun 2008 17:28:46 +0000

Yeah, I totally agree with you. Plus, I doubt I get that much money off of one single survey site anyway. Thanks for the help!

By: TUDrewser

TUDrewser — Thu, 19 Jun 2008 17:24:07 +0000

I would guess you’d probably have to get quite a bit of money from a single site before they’d send a 1099…as in, $250 or more as a wild guess.

No 1099, no real proof you received compensation. Plus, I think the IRS has bigger fish to fry

By: leann

leann — Thu, 19 Jun 2008 17:20:14 +0000

Thanks! As long as I get something I can send in, I don’t mind claiming it. I just hate having to keep up with stuff if I don’t have proof.

By: TUDrewser

TUDrewser — Thu, 19 Jun 2008 17:10:12 +0000

Technically, you are legally responsible for claiming it. However, based on how much you make, there may be no evidence. If you make enough from a single source, the’ll probably have to send you a 1099 showing the money you received, meaning you would have to claim it because the gov will have that 1099 too.

I think.

By: leann

leann — Thu, 19 Jun 2008 17:06:27 +0000

Just wondering if you have to claim money from online surveys on your taxes. I guess it depends on how much you actually make. Anyone know?

By: TUDrewser

TUDrewser — Thu, 19 Jun 2008 16:57:01 +0000

Heh, you know, I’ve used this screename since college and have never noticed that

Alas, it does not switch up “sewer turd” (as cool as that’d be), but stands for Taylor University, my alma mater, and Drewser as a nickname from an old friend.

However, from now on I shall be “Sewer Turd”, the commenter formerly known as TUDrewser

By: jay

jay — Thu, 19 Jun 2008 16:46:33 +0000

Great point TUDrewser..is that an anagram of sewer turd? (I digress – crude English joke) although if we are talking about internet earnings (and I know I am) then tax is possibly not an issue (ahem) but your point is very well made – salary and take-home pay are not the same thing…

By: TUDrewser

TUDrewser — Thu, 19 Jun 2008 15:55:16 +0000

There is another difference between increasing income and decreasing expenses. Assuming you claim your extra income on your taxes (of COURSE you do!), or that taxes are automatically taken out (second job, etc), when you work hard and make an extra $100, you don’t see all that money. First, let’s take away 30% for taxes, now you have $70. Take away 10% for tithing, you’re now down to $63 (assuming tithing off net just for this example). So you increased your income by $100, but now only have a little over half of actual money.

Now, reduce an expense by $100. That’s $100 of new, available money.

I’d argue that you’ll “make” more money (up to a point) by reducing expenses than increasing income.

By: R C-Jackson

R C-Jackson — Thu, 19 Jun 2008 15:28:52 +0000

Right on the money!

I just cancelled my cable yesterday, so I’m not going through “the shakes” quite yet. But I did realize there are soooo many other ways to enjoy the same things FOR FREE or for a substantial reduction. I’ve started many things:
– my love for CNN will never die – so I watch the podcasts from iTunes on my computer
– I go walk the treadmill at my gym when there is a show I’d like to see (which I use every day and it is CHEAPER than cable per month – and I even burn some calories!)
– I curl up with a good recycled newspaper I picked up or could possibly choose to get NetFlix for a few movies to watch a month.

Great post! And soooo important!