Warning: I just saw my quarterly tax estimate hit $12,000 and it's a gut check on not setting enough aside.

I've been putting 25% of each payment into a separate account, but a few bigger projects pushed my income higher than I planned for, and now I'm scrambling to cover the difference before the deadline.

3 comments

3 Comments

wilson.anna1mo ago

Yeah that quarterly surprise is the worst. I had a client pay way late then all at once, messed up my whole tax math for the year. You just have to eat it and adjust the withholding next time.

david_park1mo ago

So the IRS basically runs a payday loan service now?

luna8241mo ago

Forget the math, @wilson.anna... the real kicker is the interest they charge on the underpayment. It's like a penalty for their own late check.