>>The idiots who get in trouble with the IRS are the self-employed guys who spend it all as it comes in and don’t set aside for the estimated taxes. Then when the tax bill comes due, they are hopelessly unable to pay.<<
I always shake my head when I hear about that. You know, the commercials that start out “do you owe the IRS over $10,000?” I always yell at the TV or radio: “then you are a freaking idiot! Did you think you wouldn’t have to pay the taxes?”
I also laugh at TV game shows when the person wins a car or even worse a trip: they are going to have to pay Federal tax and, if they are from a non-income tax state, California tax (and maybe sales tax). That beautiful new car (again, worse, trip) is going to kick you to the next tax bracket. Chances are good you will have to sell it to pay the taxes and you will at best walk away with 1/2 its value. With trips it is even worse since they are harder to sell.
(/thread drift)
The henkster family doesn’t like watching game shows with me because I’m always the downer who says “Yeah, but after taxes it will only be X”.
Thread drift is the best thing here.
“then you are a freaking idiot! Did you think you wouldn’t have to pay the taxes?”
That’s me. I’m happy to owe. I’m just fine with paying penalties, up to a point.
Now, I’m not a total idiot, I always have the money to pay, but I always owe a lot. I like it that way.