Random Fail: First World Problems

[Kaslo]

My wife and I owed $2000 between state and federal somehow.

ha that's nothing, mine is likely to be in the six-figures :/

[Jem]

Have to earn astronomical amounts to be able to owe 6 figures though.

[Ratatapa]

Delays on operations are so annoying , I'm sorry I dealt with that recently myself. I hope everything is okay though

He's fine it just sucks that's all

[Zetanio]

Have to earn astronomical amounts to be able to owe 6 figures though.

If he's an independent contractor, he's gotta hit about 250k total income to owe 100k

[Jem]

I assume that's paying nothing all year and then paying it all at year end? I have no idea how it works for self-employed people.

[Zetanio]

I assume that's paying nothing all year and then paying it all at year end? I have no idea how it works for self-employed people.

That is how it works.

[Zetanio]

Well, that's how it CAN work.

[Aksannyi]

That seems like a terrible idea, because I feel like most people aren't good at managing their finances and end up spending money they don't have and then being like, "Oh shit, where am I going to get the money to pay this?" I'd rather pay it all along.

[Zetanio]

That seems like a terrible idea, because I feel like most people aren't good at managing their finances and end up spending money they don't have and then being like, "Oh shit, where am I going to get the money to pay this?" I'd rather pay it all along.

...

[dasva]

Really depends on the person. If you are responsible enough not to just spend any "extra" money you get then no harm and heck you just avoided giving the government an interest free loan. Never had to deal with it myself but iirc if you call before the dealine the IRS will almost always try to work something out like a payment plan.

If you can't be responsible with your money... well maybe you should look into that lol

[MrW]

You can estimate quarterly too.

[Zetanio]

Yeah. I worked as an IC for 2 year for my company before we reorganized. I just projected my income and did the basic math myself. Overestimated my per-paycheck taxes a bit every month (~200 bucks) but just tossed the money in a different account automatically.

[Bardicrune]

That seems like a terrible idea, because I feel like most people aren't good at managing their finances and end up spending money they don't have and then being like, "Oh shit, where am I going to get the money to pay this?" I'd rather pay it all along.

If you pre-pay it over the course of the year, you lose out on making interest on that money. Paying a lump sum in April for 100k even at a modest 2% APY calculated monthly, you are gaining $2018. If you delay that until late filing in October, it is $3042.

[Zetanio]

If you pre-pay it over the course of the year, you lose out on making interest on that money. Paying a lump sum in April for 100k even at a modest 2% APY calculated monthly, you are gaining $2018. If you delay that until late filing in October, it is $3042.

I think she's against the idea of having to figure it out yourself in general.

[Astylla]

I think she's against the idea of having to figure it out yourself in general.

Being a future teacher I find that ironic and kind of sad.

[Anoat]

Being a future teacher I find that ironic and kind of sad.

Even teachers don't want to show their work!

[Astylla]

Even teachers don't want to show their work!

I fucking hated that shit in math.
But it's obviously true

[Aksannyi]

I'm not a fucking math teacher so no, I don't want to do the math. I generally don't make enough money to worry about being able to make interest on it over the year, so I'd rather pay it as I go and get a refund later if I qualify. It's just a difference of opinion. And I just know a lot of people who are terrible with their money and would spend it on frivolous shit and then be like "oh fuck" at the end of the year.

[dasva]

Wait is it even all that much more work? I mean you still gotta file and figure out how much you owe/get back...

[Zetanio]

You have to estimate your total income and tax level. And by guess I mean do a little research. This isn't really about opinion. If you are an IC you have to do this.