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This is good news for independent contractors who are struggling to make ends meet.
by smallgovt 7y ago
This is good news for independent contractors who are struggling to make ends meet.
- dugmartin 7y agoYou should always keep a running estimated tax amount as an independent contractor and then keep that amount as either a buffer in your cash account or in a separate dedicated account.
- derision 7y agoEven if they have that amount and more set aside, extreme circumstances might wipe out all cash reserves
- dugmartin 7y agoI guess what I’m saying is that cash shouldn’t exist for you to use for anything else - the folks that that are expecting it have guns and their own courts and judges.
- sokoloff 7y agoThe penalties and interest for underpaying are quite reasonable and proportional, IMO (and the penalties are often waivable, making for only interest charges, which are very reasonable.) If it’s a choice between eating and keeping your car/house and paying your taxes on time, choose the former every time!
- frizkie 7y agoThis exactly. The IRS is not the Mafia.
- damon_c 7y agoRegardless, having the money needed to pay for last year's taxes sitting in the bank, equivalent to... a year or two of living expenses or so... and not having to empty it out as the world comes crashing down is kind of nice.
- Frost1x 7y agoIdeally a financial instrument that pays a little bit of interest with security, but you can quickly access, so you can squeeze a little bit more out. Money market accounts are a pretty easy yet secure option. I'm pretty sure there are better options considering my lack of investing knowledge and loophole manipulation. Amazon's tax savants could probably give better advice, though they may not be as intricately familiar with tax code applicable to us peasants.