I've started making enough to make fairly substantial tax payments each year, but I don't want to just keep thousands in my savings account. What do people here do? Should I be investing that money and pulling enough to pay my tax bill once of year?

This post was edited on 2/24/17 at 3:41 pm

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37104 posts

Posted on 2/24/17 at 3:48 pm to BarkRuffalo

if you owe more than $1,000 in taxes when you file, you are gonna get hit with penalties for not paying in throughout the year. You need to make quarterly payments.

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Posted by JayDeerTay84

Texas

Member since May 2013

9847 posts

Posted on 2/24/17 at 3:53 pm to LSUFanHouston

quote:
if you owe more than $1,000 in taxes when you file, you are gonna get hit with penalties for not paying in throughout the year. You need to make quarterly payments.

Say what!!

I was starting my return on Turbo Tax and It says I am going to owe a little more than $1K. I didn't notice any penalties. Does that come later or something?

I need to research this.

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Posted by BarkRuffalo

Boston, MA

Member since Feb 2014

1206 posts

Posted on 2/24/17 at 3:53 pm to LSUFanHouston

Thanks, not sure why I forgot about quarterly payments. That's helpful.

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

37104 posts

Posted on 2/24/17 at 4:23 pm to JayDeerTay84

If you paid in at least 110 percent of your prior year tax or 90% of your current year tax, you won't owe a penalty.

I should have said "could" not "gonna". Long week!

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Posted by JayDeerTay84

Texas

Member since May 2013

9847 posts

Posted on 2/24/17 at 4:42 pm to LSUFanHouston

quote:
If you paid in at least 110 percent of your prior year tax or 90% of your current year tax, you won't owe a penalty.

I should have said "could" not "gonna". Long week!

Roger that. Yea I looked that up on the IRS site. I'm good.

I had a good year this year, but I am unsure if it pushed me out of certain deductions because of my income or into a different bracket.

I dont have a lot of investments or assets yet which is why I use TurboTax. Early stages of my career.

I will have to start paying more attention to this.

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