Quote:
Originally Posted by Haggar
Many people like the idea of withholding as a means of smoothing out cash flow. Don't know if there's a interest income differential between withholding during the 12 months and making estimated payments 4/15, 6/15,6/15,1/15. Much prefer clients and clients prefer not having to come up with a "large" amount on these dates.
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Thanks. I understand that some people prefer to have money withheld. TurboTax calculates the quarterly estimated payments required to avoid a penalty for the following year. I make those payments online every quarter. To me, it is easier than depending on someone else to make withholding payments. Also, I never ask the IRS to send me a refund. I always apply any overpayments to the following tax year.