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Old 01-26-2015, 04:55 PM
 
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Quote:
Originally Posted by EdJS View Post
It's hard to have to pay a $2500 bill unexpectedly.
Didn't you say that the issue arose due to a large end of year distribution? If so, the distribution gives you the money to pay the bill.
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Old 01-26-2015, 04:58 PM
 
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Quote:
Originally Posted by EdJS View Post
I do because it might not turn out to be an interest free loan to the government. Each year I don't know for sure until I find out what the year end mutual fund distributions turn out to be. This year they were very large, so I know I'll owe a lot of taxes on them, so I definitely didn't loan a lot of money to the government.

In years past I used to follow the advice of "not loaning much to the government", only to be burned when the year-end distributions meant I suddenly had a huge tax bill.
This is the first year in a long time we did not have to spend some money before the end of the year.

My ruff figures look good.
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Old 01-26-2015, 05:00 PM
 
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Quote:
Originally Posted by TaxPhd View Post
Didn't you say that the issue arose due to a large end of year distribution? If so, the distribution gives you the money to pay the bill.
A lot of the time those distributions are set up to automatically reinvesting into the same fund
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Old 01-26-2015, 05:05 PM
 
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Quote:
Originally Posted by EdJS View Post
It's hard to have to pay a $2500 bill unexpectedly.


Where you penalized?
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Old 01-26-2015, 05:28 PM
 
Location: The analog world
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By choice, we always owe, and for that reason we will wait until the last damn second to file.
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Old 01-26-2015, 05:45 PM
 
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Quote:
Originally Posted by randomparent View Post
By choice, we always owe, and for that reason we will wait until the last damn second to file.
You do need to make sure you don't owe too much though. Otherwise they start forcing you to make quarterly payments and penalizing you if you have too large of a bill.

Avoid that though, and yeah, owing and paying at the last minute is the way to go.
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Old 01-26-2015, 05:47 PM
 
Location: The analog world
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Quote:
Originally Posted by Jeo123 View Post
You do need to make sure you don't owe too much though. Otherwise they start forcing you to make quarterly payments and penalizing you if you have too large of a bill.

Avoid that though, and yeah, owing and paying at the last minute is the way to go.
We're very aware of that possibility and well practiced at finding the sweet spot.
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Old 01-26-2015, 07:08 PM
 
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Quote:
Originally Posted by Jeo123 View Post
You do need to make sure you don't owe too much though. Otherwise they start forcing you to make quarterly payments and penalizing you if you have too large of a bill.

Avoid that though, and yeah, owing and paying at the last minute is the way to go.
Even though we get a return each year we have to either make quarterly payments or withhold 10% more than the prior year
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Old 01-26-2015, 07:27 PM
 
6,091 posts, read 2,821,735 times
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Quote:
Originally Posted by Lowexpectations View Post
A lot of the time those distributions are set up to automatically reinvesting into the same fund
Yes, but the money IS available to pay the tax.
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Old 01-26-2015, 07:29 PM
 
18,853 posts, read 13,601,877 times
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Quote:
Originally Posted by TaxPhd View Post
Yes, but the money IS available to pay the tax.

If you want to sell to raise the cash it is
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