Struggled between quarterly estimated payments vs just saving a bigger lump sum

So last year I had to choose between paying the IRS every 3 months or just stashing cash in a high-yield savings account and dealing with it once. I went with the quarterly route because my income fluctuates a lot - one month I'd make $3k, the next $8k from a big project... It actually saved me from a penalty when I had a surprise $12k month in September. But man, calculating those estimates is annoying. How do you guys handle the quarterly payments without losing your mind?

3 comments

3 Comments

noraroberts11d ago

Are we supposed to actually enjoy calculating those estimates? I just slap a random number in and hope the IRS doesn't come knocking with a baseball bat.

sanchez.julia10d ago

Wait, you're saying you just throw any number in there and hope for the best? That sounds like a good way to end up in a mess if they ever decide to audit you. I always try to do a rough calculation, even if it's just a ballpark figure, so I at least have something to back up my estimate.

paige_bell8110d ago

Right? Isn't that what TurboTax is literally for?