Yep. Lots of people don't understand that cash is fungible and see a tight relationship that does not really exist between source of cash and the expense being paid. And they think that making estimated payments and withholding is literally paying the tax on that income and don't understand that both are nothing more than payments on your tax account to be reconciled on your tax return (and they think they bigger their refund, the better rather than properly thinking of it as "oops, I gave the government an interest-free loan." I'm doing my best to make sure I owe without a penalty on April 15.I am not surprised by different people's idiosyncrasys. I think a lot of people don't understand marginal tax brackets. I heard a podcast recently with tax advisor Ed Slott. He describes how one of his client kept not paying his quarterly, resulting in a penalty. He then tried to get the client's kids to handle it, but they forgot and yet again there is a penalty. Finally he withholds 100% from RMD. The client then praise him for saving him from paying all of the quarterly taxes even though he is paying the same amount.I'm always amazed by people who are so opposed to paying taxes (which fund services they use) that they're rather "pay" a 100% virtual tax by not having the income at all. It's a short-sighted short-term goal at the expense of the longer term end-goal.
Statistics: Posted by lstone19 — Tue Jul 30, 2024 9:48 am