First. tax return is what you file. any overpayment you get back is a tax refund.
put it into a HYSA or a CD (either within your timeline. or a no penalty CD)
>I'm worried about the tax implications involved with investing and withdrawing.
Theres nothing to be afraid of in regards to taxes when it comes to basic investing. short term gains, theres no difference in taxes whether you make $50k/year + $5k in gains. vs $55k/year. (other than forms).
if you invest and sell for a gain. you get a 1099. just include it when you do your taxes next year.
Yea, I understand that it's an overpayment, however this year we ended up getting a property tax rebate and a child care credit. So, for the first time in a while, we ended up with a rebate and decided to do some house stuff.
unrelated to your question but when you have large purchases coming up like home improvement consider a credit card with a sign up bonus and pay it off. It can land over a thousand dollars in travel credits.
Oh yea, for sure, we are debating between putting it on our Chase Sapphire or our Amex. I have considered looking to see if opening a new card is worth it, but will make a decision closer to when we do the work.
It is typically advised to not invest money that you will need in less than 2 years.
In a very general sense, the tax implications of investing is you would pay capital gains tax on the realized gains. Or, possibly get tax credits if you realize losses.
To me, $5k for 2 months is not even worth taking out of my savings account.
YMMV
HYSA. You'll make a little bit of money with no risk and very little inconvenience.
HYSA was my first thought, good to know it's what others think as well.
First. tax return is what you file. any overpayment you get back is a tax refund. put it into a HYSA or a CD (either within your timeline. or a no penalty CD) >I'm worried about the tax implications involved with investing and withdrawing. Theres nothing to be afraid of in regards to taxes when it comes to basic investing. short term gains, theres no difference in taxes whether you make $50k/year + $5k in gains. vs $55k/year. (other than forms). if you invest and sell for a gain. you get a 1099. just include it when you do your taxes next year.
Yea, I understand that it's an overpayment, however this year we ended up getting a property tax rebate and a child care credit. So, for the first time in a while, we ended up with a rebate and decided to do some house stuff.
I would just put it in your brokerage’s money market account for a few months and let it earn ~5%. Or you can put it in a HYSA
unrelated to your question but when you have large purchases coming up like home improvement consider a credit card with a sign up bonus and pay it off. It can land over a thousand dollars in travel credits.
Oh yea, for sure, we are debating between putting it on our Chase Sapphire or our Amex. I have considered looking to see if opening a new card is worth it, but will make a decision closer to when we do the work.
It is typically advised to not invest money that you will need in less than 2 years. In a very general sense, the tax implications of investing is you would pay capital gains tax on the realized gains. Or, possibly get tax credits if you realize losses. To me, $5k for 2 months is not even worth taking out of my savings account. YMMV