Comments on: Graduation Speech Part 5: Taxes are taxing http://totalcandor.com/blog/2008/06/graduation-speech-part-5-taxes-are-taxing/ A Conversation About Income, Wealth, and the Steps in Between Sun, 25 Dec 2011 17:20:47 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2008/06/graduation-speech-part-5-taxes-are-taxing/comment-page-1/#comment-7948 Michael Tue, 24 Jun 2008 20:02:51 +0000 http://totalcandor.com/blog/?p=207#comment-7948 @M. - You'll be so happy you asked this question rather than next April! As many self-employed have learned the hard way, paying later doesn't mean paying less. In fact, you may even pay more (since you have to pay both halves of the Social Security and Medicare taxes). Thanks to the time value of money, it's always better to pay taxes (or any bill) later rather than sooner. But this assumes you won't owe any penalties for underpayment of tax. It also assumes that you're saving the money you'll owe to the IRS later. And you know what assuming does. . . Great question. Timely question. @M. – You’ll be so happy you asked this question rather than next April! As many self-employed have learned the hard way, paying later doesn’t mean paying less. In fact, you may even pay more (since you have to pay both halves of the Social Security and Medicare taxes).

Thanks to the time value of money, it’s always better to pay taxes (or any bill) later rather than sooner. But this assumes you won’t owe any penalties for underpayment of tax. It also assumes that you’re saving the money you’ll owe to the IRS later. And you know what assuming does. . .

Great question. Timely question.

]]> By: M. Contreras http://totalcandor.com/blog/2008/06/graduation-speech-part-5-taxes-are-taxing/comment-page-1/#comment-7947 M. Contreras Tue, 24 Jun 2008 19:47:06 +0000 http://totalcandor.com/blog/?p=207#comment-7947 So is it better to have a job (like being an independent personal assistant) were no taxes are taken out until your boss claims you at the end of the year? Or is this going to cause way more pain come tax season? So is it better to have a job (like being an independent personal assistant) were no taxes are taken out until your boss claims you at the end of the year? Or is this going to cause way more pain come tax season?

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