I estimate my taxes for the year ahead via a complicated spreadsheet. One nice output is that I can tell if I need to pay estimated taxes.
At the start of the year I expect to have to pay estimated taxes but unexpected payments that have withholding can force me into a place where I don't have to pay them because of the safe harbor rules.
So at that point I skip paying and expect an elevated tax bill for that year. I just realized this is a sub optimal strategy and instead I should make a payment of $0.50. In fact I am thinking everybody should pay 50 cents each quarter if you can be bothered to save up to $2 in taxes.
At the start of the year I expect to have to pay estimated taxes but unexpected payments that have withholding can force me into a place where I don't have to pay them because of the safe harbor rules.
So at that point I skip paying and expect an elevated tax bill for that year. I just realized this is a sub optimal strategy and instead I should make a payment of $0.50. In fact I am thinking everybody should pay 50 cents each quarter if you can be bothered to save up to $2 in taxes.