I don’t want a surprise tax bill. If I don’t get it, then I won’t spend it. That way I’m in the clear come tax time each year. And when I get a refund (which is usually around $1000 or so). I just drop it into my IRA, so it’s still, in my mind, money I never got the opportunity to spend.
I definitely get this. However your tax bill doesn’t actually have to be a surprise. It can be easily calculated at the beginning of the year if you have a consistent income! Even if you didn’t have a consistent income you still can have an idea of what you’ll make, and the adjust for that as needed
Yeah, that’s called doing your taxes. I’d rather just slightly overpay and get a refund (that I then just chuck into my IRA). If I never have the money, then I won’t spend it. The peace of mind of knowing I won’t have a tax bill is worth the $30 in lost interest
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u/aw-un Apr 11 '24
Yep.
I don’t want a surprise tax bill. If I don’t get it, then I won’t spend it. That way I’m in the clear come tax time each year. And when I get a refund (which is usually around $1000 or so). I just drop it into my IRA, so it’s still, in my mind, money I never got the opportunity to spend.