How Much to Set Aside for Taxes (and Where to Put It)
Most underpayment-penalty stories sound the same: 'I knew I owed taxes, I just spent the money first.' Solve it by never letting the money sit in your operating account in the first place.
The transfer rule. Open a separate high-yield savings account at the same bank (instant transfers).
Suggested rates by situation.
Frequently asked questions
What if I cannot afford to set aside 25%?
That is a signal to raise prices, not skip taxes. The bill comes due either way.
