I was grabbing coffee with a fellow freelancer in Denver last month, and she mentioned she puts 40% of every check straight into a separate savings account for taxes.

3 comments

3 Comments

Forty percent just for taxes? That's not a savings account, that's a hostage situation. My accountant would have a heart attack if I tried that.

Seriously, @victor651, that's not saving, it's just giving the government an interest-free loan.

But what's the actual benefit of letting them hold it all year?