Yikes! Taxes!

Depending upon in which state you live, state taxes may be due either this Friday, or next Monday when Federal is due.  Oh, man.  I got stuck with a fortune for federal, and a smaller one for state, this year.  Some years, I overpay estimated, and end up owing nothing.  Some years I end up owing nothing for estimated quarterly, but then get stuck owing a fortune when I end up making more than I thought I would.

This year is one of those in which I owed both a large fortune for last year, plus a mini-fortune for 1Q estimated, to both my state, and Uncle Sam.  My accountant and I agreed that this year was highly unusual for my capital gains, so we decided to half last year’s to estimate this year’s.  It’s not really a bad guess.  If I end up overpaying for 2022, I won’t be giving the government too huge of an interest free loan, and if I underpay, it won’t be by enough to trigger a penalty.

This is what happens when your income is highly variable year to year.  Hope the rest of you don’t have the kind of roller coaster ride I’m having, but I guess if you owe a fortune, it’s better to pay it now before taxes get raised again.  That won’t happen during an election year, but you can bet it will come up for discussion in congress in 2023.

Buckle up, people.  We’re all in for a ride over the next 2-3 years.

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