3

When filing taxes electronically, TurboTax gives me the option of when I want to pay.

Is there any good reason to not just put 7/15/2020 in there and let the money accumulate interest in the meantime?

6

Probably not.

Really the only potential justification I can think for not delaying is that it's possible that you may forget to make the money available. Presumably when you say just put 7/15/2020 in there you mean authorize a transaction to debit a checking account on 15 July 2020 (not sure if you can provide other types of account for payment). If you leave the money in that account between now and then, you will get either no interest or very little interest (unless you have a very high rate on a interest-bearing checking account and owe a large amount in taxes). If you move the money elsewhere to earn a higher return, you run the risk of not putting it back in time, which could incur fees and penalties if it causes the transaction to be declined. This could easily wipe out any interest you earned. The risk of screwing this up is pretty low, but the penalty is steep (you lose money instead of gaining).

1
  • This is why the optimal solution is to give yourself a bit of leeway and aim to pay tax 1 month in advance, so ~6/15/2020. Apr 10 '20 at 20:28

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