What is best practice for categorizing tax refunds?

Options
DannyB
DannyB Superuser ✭✭✭✭✭

Not a big deal, but just wondering how the community handles state and/or federal tax refunds.

  • Personal Income?
  • A subcategory of Personal income?
  • Excluded from Spending Plan?
  • Excluded from reports?

What would you say is “best practice”

Danny
Simplifi user since 01/22
Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
Tagged:

Comments

  • RobWilk
    RobWilk Superuser ✭✭✭✭✭
    Options

    Mine (small amount, like under $130) was auto entered as a category of "State Tax" so I left it that way. It wasn't big enough to worry about needing to exclude it. Lucky me, same day this came in, my gym hit me with an annual fee (on top of the monthly fee) which ate up about half the state tax refund.


    Rob Wilkens

  • UrsulaA
    UrsulaA Superuser ✭✭✭✭
    edited March 2
    Options

    I enter tax refunds as a sub category of personal income. Additional taxes paid for are tracked under spending in Taxes sub categories. I pay all my taxes through withholding now. Before I paid some estimated and back taxes, which I tracked.

    Simplifi User Since Nov 2023

    Minter 2014-2023

    Questionable Excel before 2014 to present

  • DannyB
    DannyB Superuser ✭✭✭✭✭
    edited March 5
    Options

    Update:

    Like @UrsulaA I will categorize my refunds from state and fed as Personal Income>Tax Refund.

    For now, I will exclude both from my Spending Plan and Reports and this year our refunds will be transferred to our Travel savings account and added to the Travel SG.

    Danny
    Simplifi user since 01/22
    Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
  • Coach Natalie
    Coach Natalie Administrator, Moderator admin
    Options

    I personally just use "Personal Income" and don't see the need to narrow it down any further. I did owe taxes a few years back, though, and I used the built-in Expense Category for "Taxes". 🙂

  • DannyB
    DannyB Superuser ✭✭✭✭✭
    Options

    OK, I went ahead and made a contribution to Travel SG for the amount of the refund and, duh, my Spending Plan went red 🤪 … and of course it would since I had excluded the refund from the Spending Plan 🫣 … so now it’s included and SP is back in the green.

    Danny
    Simplifi user since 01/22
    Budget: a mathematical confirmation of your suspicions.” ~A.A. Latimer
This discussion has been closed.