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Personal Finance and Investing

progree

(11,463 posts)

8. Never a penalty on overpaying estimated income tax. Except one is giving the Treasury

Reply to doc03 (Reply #6)

Fri Jun 10, 2022, 10:46 AM

Jun 2022

an interest-free loan. So there is an opportunity cost in that one could invest it instead.

But if it allows one to buy an extra $5,000 in I-bonds at 9.62%, then its a good way to go.

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US govt I bonds might be a good investment now. [View all] Tomconroy Jun 2022 OP

There are two parts to i-bonds. An inflation part, and a fixed part. JohnSJ Jun 2022 #1

This message was self-deleted by its author sl8 Jun 2022 #2

Yes, thanks. I will correct. JohnSJ Jun 2022 #3

Looks like the 9.6 rate is paid for 6 months Tomconroy Jun 2022 #4

Yes, and you can buy right now, and up to October get a 9.62% rate. That rate will change in JohnSJ Jun 2022 #5

There is a 3 month lag in the interest until they are 5 years old. If you would buy one today doc03 Jun 2022 #7

I bought one in June last year at 3.54% and another in January this year at 7.12% now 9.62%. doc03 Jun 2022 #6

Never a penalty on overpaying estimated income tax. Except one is giving the Treasury progree Jun 2022 #8

It sure is, I wasnt sure about overpaying estimated tax. doc03 Jun 2022 #9

Can my wife and I both buy a $10,000 bond? bif Jun 2022 #10

Yes JohnSJ Jun 2022 #11

I am Rebl2 Jun 2022 #12

If its worth the fuss to you of setting up an account at Treasurydirect.gov progree Jun 2022 #13