Can T Bills be selected to mature in January, as opposed to December, so that tax on interest is available for investment through the entire year? Examples: 1. In 2023, Jack spends $100k on a 26w T-Bill @ 5% that matures on January 3rd, 2024. He is paid his $2,500 on said date. Assuming a 32% tax bracket, Jack owes Uncle Sam $800, but since it was paid in 2024, it's not due until April 15th 2025. So he reinvests this $800 until this date and makes around $54 from interest on tax dollars. 2. In 2023, Jill spends $100k on something similar, a 26w T-Bill @ 5%, but hers matures on December 27th, 2023. Like Jack, she is paid her $2500 in interest, but it's 2023 income. She needs to cough up the $800 in tax by Apr 15, 2024. She invests it for 16 weeks, and makes only $12. She loses interest on a year's investment of tax due, here about $42, because the interest on her 26w Bill was paid a week earlier, in Dec 2023. In other words, can a year's interest can be earned on tax due simply by buying bonds that mature in January at the beginning of the tax year, and not December end of tax year, because the tax dollars are available until next year's tax due date? Is this kosher? Ty.
You're supposed to make estimated tax payments each quarter. I'm not sure the IRS will care about 800 bux, but technically you can get penalized for not paying the tax in Q1 2024. Would the penalty be more than the $54 in interest earned? Dunno' that either. Consult a CPA (or 3).
Estimated tax payments? I’m non-professional. Must individuals also make estimated payments? it may not matter for $800, but when my big bets hit I’ll have $8000000000000000, and then it will matter!
Being pro has no bearing on your obligation to pay taxes in the IRS's eyes. "Estimated tax is the method used to pay tax on income that isn’t subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). In addition, if you don’t elect voluntary withholding, you should make estimated tax payments on other taxable income, such as unemployment compensation and the taxable part of your social security benefits..." "When a Penalty Is Applied In some cases, you may owe a penalty when you file your return. The penalty is imposed on each underpayment for the number of days it remains unpaid. A penalty may be applied if you didn’t pay enough estimated tax for the year or you didn’t make the payments on time or in the required amount. A penalty may apply even if you have an overpayment on your tax return." https://www.irs.gov/pub/irs-prior/f1040es--2023.pdf