Author Topic: investing my estimated taxes and tax penalties...  (Read 1293 times)

FuckRx

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investing my estimated taxes and tax penalties...
« on: April 04, 2014, 02:33:47 PM »

I owe somewhere around 100-130k per year in estimated taxes which I have been paying quarterly for the past 2 years. It's somewhere in the 30k range per payment. I was hoping someone could explain how the penalty is calculated. it's somewhere in the 3-4% range for the year if I don't make any payments at all? I was thinking of investing that money and then just send it in at the end of the year. any thoughts?

foobar

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Re: investing my estimated taxes and tax penalties...
« Reply #1 on: April 04, 2014, 02:51:50 PM »
What are your plans if you lose 20% on your investments? Form 2210 tells you how to calculate the tax.

kyleaaa

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Re: investing my estimated taxes and tax penalties...
« Reply #2 on: April 05, 2014, 07:37:23 AM »
The IRS intentionally sets the penalty high enough that what you're trying to do isn't really worth it. If you wanted to take on a ton of risk and invest the money in stocks you MIGHT come out ahead. But there are no safe investments that would allow you to come out ahead after taxes. Not worth the trouble.