Posted by William Charles on April 7, 2015
Recaps

Published on April 7th, 2015 | by William Charles

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EMV Signatures Are Worthless, 7 Ways To Milk Club Carlson, American Express Increases Penalty APRs, Tax Refunds



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Michael
Michael

I’m stick of how bloated the whole tax refund/filing complex has become. With all the marketing done by all the various financial players, I’m looking forward to political elections for a reprieve. I’ve rarely had a tax refund and if I did it was low.

What a horrible mismash of priorities capitalism becomes. Perverse incentives become the norm. But to each their own.

R.
R.

Why not maximize estimated tax payments in January, just before filing the refund?

David
David

Because the U.S. tax code is a “pay as you go” system. From the IRS.gov website itself: “For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return…”

There are all kinds of exceptions to the above (thanks, Congress people!!), but generally for most people paying estimated taxes all in one lump sum will not work out in the end. Very much YMMV!

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