This tax season we are having more and more clients having a significant tax liability; some federal, some state or both.
Some clients who have been having liabilities are planning to adjust their withholding. I hope they follow through.
For most we give them estimated payments to make. I know, most of them are not going to make the quarterly payments. Or will make a couple but not all of them.
I had a client who under withheld purposely, his philosophy was wanting to die owing the IRS money, he was in his early 40’s. I looked at his wife and asked her, “what do you think of that philosophy?” She rolled her eyes. Knowing that there was no changing him. He rather pay the under withholding penalties that change his ways.
Would you rather (1) adjust withholding, (2) make estimated payment, (3) just owe at the end of the year? I am in the increase the withholding category…