Shoutout to quarterly estimated payments over waiting for one big April surprise

I compared paying $800 every 3 months versus dropping $3,200 all at once last April and the quarterly route kept me from panic-selling my pressure washing rig on Facebook Marketplace.

3 comments

3 Comments

finleym376d ago

Man, quarterly payments are the way to go. I been doing that for years now. That big lump sum in April will wreck your whole month if you're not ready. Spreading it out keeps cash flow steady and you don't have to sell off your tools just to cover the tax man.

joseph486d ago

I read somewhere that the IRS even lets you skip a quarterly payment if your income drops that quarter, which helps folks like @finleym37 keep their cash flow smooth.

brooke_murray5d ago

Oh man, that's the thing I love about the quarterly system too! Joseph48 is spot on about being able to skip a payment if your income takes a dip. I had a slow quarter last year and just skipped one, no penalty or anything. It's like the IRS actually gets that we're not all making the same money every single quarter. Plus, spreading it out means you're not staring down that huge number in April and having a heart attack. Honestly, it's the only reason I haven't had to dip into my emergency fund for taxes in years.