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c/freelance-financejoseph_torresjoseph_torres2mo agoProlific Poster

Overheard a client on the phone talking about their 'tax bucket'

They were telling someone they put 30% of every single payment into a separate account right away, before they even touch the money. I started doing it last month with a new business checking account, and it's already way less stressful knowing that cash is just for taxes. Anyone else have a simple trick like this for not getting surprised at tax time?
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3 Comments
diana20
diana202mo ago
Wait, they put in 30%? That's way too much for most people. Are they making a ton of money or just really scared of the IRS?
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vera681
vera6812mo ago
Imagine being that scared of the IRS. They must have had a really bad year or just enjoy getting a massive refund like it's a surprise gift.
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blairtaylor
Yeah, that's a huge chunk... I know some folks who do that because they had a surprise tax bill one year and now they're paranoid. Others just have no idea what they're doing with their W-4.
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