Discussion:Why is it clients can't wrap their heads around estimated payments?

He comes by late Monday. I've already done my calculations and they show the payment as the one I calculated in April. He looks at me and says, "I don't understand. I only worked two months and I have to come up with the same amount?" I told him the calculations I gave him in April were for the entire year, I pointed that out to him, but I was late for my 8 y/o daughter's softball game, tired and in no mood to argue. Of course you know what's coming next from him, "I don't have that kind of money right now."

I told him he would likely be penalized for underpayment of estimated taxes next year for not paying enough. "But why?", was the response. "My dad does his taxes in Turbo Tax (insert eye roll here) and he just punches in the numbers and it tells him what to pay." I thought about tearing my hair out, but I didn't.

I just asked him, "What can you afford?" He told me. We filled out the vouchers for those amounts. They were only $1,300 short of what I originally told him from April for both Fed and State.

That's twice this guy has done this and twice I have tried to educate him on he has to save his money. All my other clients, except one who has extreme income swings, does it.

Why are some thick-headed?

Tom

Later on, of course, they get to bitch about the penalty too.