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That thing my accountant said about quarterly payments finally clicked last Thursday
She told me I'm basically loaning the IRS my money for free when I overpay every quarter, and now I'm setting up automatic transfers to a separate savings account instead, anyone else been doing this wrong for way too long?
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quinn34112d ago
$3000 overpayment last year and my accountant said the same thing... are you putting it in a high-yield savings at least or just a regular checking account?
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mitchell.thomas12d ago
Are you still making estimated payments or just letting the savings sit until tax time?
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rowan_ross11d ago
Had a buddy who used to just dump extra cash into his checking account and call it "saving for taxes." He was so proud of himself until his accountant showed him he lost about 200 bucks in interest over two years. Now he's got it in a HYSA and sets a calendar reminder every quarter to move it over. @mitchell.thomas he still makes estimated payments but only after the money sits and earns something first. He says it feels weird not just sending it right away but the math works out.
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