Turbo Tax tells me I owe the Feds $298. While I'm not all that happy about it, it could be worse. Last year it was. Worse, that is. I was close to even this year.
It got me to thinking, though. When tax planning, do you try to break even? Underpay intentionally? Or overpay intentionally?
Were you disciplined, underpaying, investing and keeping the interest would be the smartest. Were you not so earnest, breaking even would make sense. You keep the money. Don't earn nothing off it, but you don't give it to the feds to use until the next spring. Of course, giving it to Sammy to hold onto for a bit insures you have it. For lower income levels, this makes for a tidy little sum come spring.
Which do you do?
Posted by danisaacs at February 09, 2003 06:06 PMWhat is this "planning" you speak of?
Posted by: Jeremy Zawodny on February 9, 2003 09:33 PMIt's bad, but I overpay. Really overpay. Like getting a major four figure check back each year.
That being said, I'm really glad to do it. With job security in the toliet, it nice to know that I don't have to write a large check on April 15th.
Posted by: Brian on February 9, 2003 11:12 PMActually, They are borrowing all the money for that. I'm just filling in where Microsoft bailed.
Posted by: Dan Isaacs on February 10, 2003 03:28 PM