• Zorque@kbin.social
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    7 months ago

    $10k in cash (typical emergency fund)

    There’s your mistake right there, thinking people have even $10k to serve as a spare emergency fund.

    I don’t even have a thousand spare right now for an emergency.

    • sugar_in_your_tea@sh.itjust.works
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      7 months ago

      It’s just an example. You can get semi-interesting numbers with just regular cash flow, depending on what kind of interest your accounts get. Let’s say you make $60k/year and your money sits in your account on average for 5 days. So that’s essentially the same as $800-900 (($60k / 26) * (5/14)) earning whatever your interest rate is on your account. That’s something like $20-40 for 2-5%. That money counts.

      Your risk of an audit increases the more discrepancy the automated checks find. This article claims poorer people are getting targeted more and more, so I think it makes sense to take a few extra minutes to report all of the little accounts you may have.

    • Riven@lemmy.dbzer0.com
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      7 months ago

      Yea I appreciate the dude trying to make sure people don’t forget stuff and get fucked by the irs but he’s a bit privileged thinking we’re all as well off as he is.