Comments on: Alleviate Quarterly Estimated Tax Burden By Paying… Monthly?

By: Julie

Julie — Wed, 09 Jun 2010 13:58:07 +0000

I agree with Becky … put a percentage of each pay cheque into a no-fee savings account (I use ING). I view that as not my money, and I receive a small amount of pleasure from making a little interest on it before handing it over. Also, I believe the charge for using electronic payment to the IRS isn’t cheap (I send paper cheques to avoid paying it. So if you make monthly payments, not only are losing out on potential interest for yourself, but you’re costing yourself more in fees. That would bother me too much! LOL

By: allena

allena — Wed, 09 Jun 2010 11:52:49 +0000

I’ve said this a million times and for 3 years it’s been fine with my acct and the IRS: we just have my husband increase his withholding enough that my estimate is ZERO and officially, you’re supposed to report that ZERO too, but I never have.

If you file jointly, the IRS sees you as one tax entity anyway.
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By: Angie Papple Johnston

Angie Papple Johnston — Wed, 09 Jun 2010 10:06:47 +0000

I didn’t even know you could do that! I sock a huge piece of every payment away in another account – but it still hurts. Thanks for tipping me off!
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By: Phil

Phil — Tue, 08 Jun 2010 22:24:46 +0000

When I had a schedule C, 18 years ago (company is has been a full C corporation since), I filed quarterly.

Yes, it was a pain, but I think monthly kills cash flow, which can be critical to a small business. Even if it’s just a couple of days (you get a payment a few days before quarterly taxes are due, enabling you to use other funds you have set aside), having cash enables one to take advantage of sales, discounts and pay bills before they become past due (with additional charges).

By: Erik Hare

Erik Hare — Tue, 08 Jun 2010 22:04:52 +0000

Very good topic, something I’ll have to think about. I’m used to quarterly, but it is a big pain. Thanks!
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By: Natalia M. Sylvester

Natalia M. Sylvester — Tue, 08 Jun 2010 20:35:35 +0000

I pay four times a year, and put a part of every check in a savings account. That way, in my mind, that money is already separate from the money I’ve “made” so it’s not as hard to part with!

By: becky

becky — Tue, 08 Jun 2010 18:10:38 +0000

Why not just keep it in an interest-bearing account, like something free from Ally? You get the interest instead of the IRS, but you’re still setting aside the right amount monthly.