Bigger quarterly payments or bigger refund next spring? My last 3 years keep flip flopping

So last month I did my estimated payments for Q3 and I went with the safe harbor route, paid exactly what I owed last year. My accountant friend says that's stupid, I'm giving the government an interest free loan. But my other buddy who does his own books swears by overpaying because he got burned once with a surprise tax bill in 2021 and now he's paranoid. I'm sitting here in Portland looking at my spreadsheets and I can't decide. I usually get a refund around $1,200 each April but that means I'm short on cash every quarter when things get slow. Is it better to just owe a little at filing time and keep that money working for me through the year? Or do you all prefer the forced savings thing? What's your approach and has it ever bit you in the butt?

2 comments

2 Comments

fisher.jessica2d ago

Just pick one and stop stressing, this is like a hundred bucks a month either way.

zarag171d ago

Girl same! I used to stress about this every single quarter. Overpaid for two years straight, felt like a genius in April, then realized I was just giving away my money all year.