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To: Maceman

This is entirely preventable.

Fill out your W-4 form so that the correct amount is withheld.

OTOH if you are required to pay estimated tax there is a penalty for not paying this on time, which is really just an interest rate on the money they think you should have sent them.

The feds have a long tradition of charging you interest on the money you owe them, but not paying you interest on the money they owe you.

The most egregious examples are the social security calculations they publish on when to take SS, always showing that the longer you wait, the better off you are. This is not always the case. If you take into account a real interest rate on the money you get in the early years, it may well be better for you (and worse for them) to take SS as early as possible.


20 posted on 12/23/2015 9:05:33 AM PST by CurlyDave
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To: CurlyDave

“If you take into account a real interest rate on the money you get in the early years...”

Except we haven’t had “interest rates” to speak of in what, almost a decade now? There’s really no telling if the Fed will ever let us have significant interest rates again. I suppose economic forces might eventually force them to, but we could all be bankrupt by then.


35 posted on 12/23/2015 10:06:14 AM PST by Boogieman
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