Why does nobody talk about the tax hit from a good quarter?

Last week I got a check for a big project I finished in March, and my tax software says I owe an extra $2,400 for the quarter. I was so happy about the money, but now I have to set aside a huge chunk. How do you guys plan for these surprise tax bills?

3 comments

3 Comments

rileyp498d ago

My cousin lost his boat to a surprise tax bill.

emery_lopez8d ago

Man, that's rough for your cousin @rileyp49. A buddy of mine had his truck almost taken for back taxes he didn't know about, something with an old parking ticket that ballooned. He had to borrow from his dad to clear it last minute.

kimr103d ago

My accountant told me to set aside 30% of every freelance check right when it hits my account. It stings but it works. That story from @emery_lopez about the truck is exactly why I do it, you never know when a small thing can blow up. I just move that tax money to a separate savings account so it's out of sight.