@M_Hug wrote:
So even though I intend to pay taxes on my March 2023 bonus but not until April 2024, because it'll be over $1,000 then my fees + interest will be higher than my investment returns. Was hoping to "have my money work for me" vs paying my taxes right away and not April 2024. And I intended to pay that original withholdings (~$250 from your example) back in April 2024, I know I can't avoid that 🙂
It depends on your investment gains, of course, if you can make 20%, that's a profit even after paying 12% interest and penalties. But I don't think there are many (safe) investments that would pay that much.
You can spread out your payments as I described. If you invested the 25% of your bonus that you need to set aside, you need to pull 1/4 out for each quarterly payment, but the rest could remain invested, if it was liquid enough.
