It’s so easy to get a tax filing extension and put off the unpleasant work til fall.
Procrastination is easy, and even sanctioned by the simplicity of an extension.
But doing it now is important to your financial wellbeing
From a purely selfish point of view, you need to know where you and Uncle Sam stand.
Really it’s all about next year. W
hat did Goldilocks know about taxes?
Getting withholding just right
Your withholding for next year’s tax bill needs to be just right, not too large, not too small, but right close to what you’ll owe.
Just like Goldilocks and her porridge.
And a good estimate of what you’ll owe for this year
is what you owe for last year
, the return we’re preparing this spring.
Unless your finances are wildly variable, last year may not be a surefire template for this year
, but it’s usually close.
But you don’t know what you owed for last year
til you do the math. (I know, math
, but it can’t be helped).
Scared to know?
Fear keeps many from figuring out what they owe on their taxes. Fear that it’s a number bigger than they can pay. Fear of drawing attention to themselves.
So, let’s look at the downside of putting it off til October.