Went from owing $4k to a $900 refund after switching to quarterly payments

Last year I just ignored my freelance income all year and filed once in April. Got hit with a $4k tax bill plus penalties and it basically wiped out my savings. This year I started doing quarterly estimated payments, nothing fancy just using the IRS Direct Pay site every 3 months. Took maybe 15 minutes each time. When I filed this year I actually got a $900 refund because I overpaid a little. Has anyone else had that big of a swing just from changing when you pay?

3 comments

3 Comments

henry_anderson5416d ago

Wouldn't the real lesson here be that the government is basically forcing us to save for ourselves by spreading out the pain? I never thought about it that way until I had that same shock the first time.

keith16416d ago

That first tax bill made me rethink everything too honestly.

scott.alex16d ago

I mean, idk, "forcing us to save" feels like a pretty generous way to look at it.