Taxes question

[RevSmoke]

Originally Posted by DAFU

Why would it be any better to overpay for a couple of years than to get a refund back at the end of the year. Do you get interest credits for overpayments?

If you pay your own taxes and don't want to have to come up with a large some on April 15, the first couple years you are doing it, you overpay - till you get it figured out. You get a refund or you apply your overpayment to the next year's taxes. The government does not pay you any interest.

If you have a good accountant help you figure out your estimated payments as you are going along, you don't need to overpay.

Last year (2008) we had an unexpected expense that turned out to be deductible - so we overpaid like $750 in federal taxes as it messed up our estimated payment. That was an incredible amount, at least to my tastes. I was applied to our first payment toward 2009 taxes. I hade one year that I underpaid badly (at least to my attitude), it was like $400 combined between federal and state. I have an account I put money in, just for that - in case. BUT, it is gaining interest for me. And if I don't need it, shazam - I take it out and use it - or put it in the boys' college funds.

Peace of the Lord be with you.