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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Owing money to Uncle Sam come tax time is a good thing. Who wants to give the govt an interest free loan just so they can go waste it. Just make sure you follow the Safe Harbor Rules so you don't pay any under withholding penalties. The easiest Safe Harbor rule to estimate is to pay at least 100% of your prior year tax liability in withholding and estimated taxes (if your previous year AGI was $150K+ then the formula is 110%).

By the way, if you owe $5K in taxes, don't pay  early. Wait until April 15th and continue to collect interest unless you like giving the govt free money.[/quote]

I had an incredible year in the stock market in 2023. My federal tax bill was over $600K and my Virginia state tax bill was over $125K. However, my 2022 tax liability was only about $100K so I made sure I met the Safe Harbor Rule for 2023 (paying about $110K in fed withholding and estimated taxes and about $30K in state withholding) knowing I would owe a lot of tax on 4/15/2023. Much prefer to keep that additional $585K working for me until the last minute then give it to the govt early. Just have to make sure you'll have that money available when the tax is due on April 15th.[/quote]

Correction: .....knowing I would owe a lot of tax on 4/15/2024.[/quote]

Wow. Why did you take so much capital gain in 2023?[/quote]

All cash buyout of a stock I owned. Fortunately I had even more in a Roth. [/quote]

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