On 4/18/2021 11:30 AM, Ralph Mowery wrote:
In article ,
says...

OK let's see how much it is costing me. Say I got $5000 back and it
was put in there evenly over a year. I put this in my financial
calculator using $416.67 a month for 12 months at .25%. (what my bank
pays) I lost a whopping $5.77.
That is pretty cheap insurance against having a windfall towards the
end of the year that blew out my withholding and got me stuck in
paying quarterlies or worse, some kind of penalty.
Said another way that is a Mocha Venti Frappachino starbucks.
I can afford it. I have plenty of cash on hand.



YOu are ok with that small amout.

Now try throwing the same numbers in that calculator and an interist
rate of 15 % over a period of 10 to 20 years and see how much it is
costing you in the long run.


You are allowed a certain ammout of under payment on the federal taxes.
I think it may eveh have something to do with the tax the year before,
but not sure.



I got penalized for two years underpaying the state and was not told for
a couple of years which compounded the interest owed.

I had made the mistake of not filing quarterly with them figuring I
would just pay up at the end of the year. This was because they made it
difficult to establish quarterly payment. Form were not readily
available and when I had to do it several days of calling were necessary.