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by bombcar 871 days ago
You pay tax on those overpayments.

But they only pay that if they don’t return it that year (for normal W-2 employees).
1 comments
loeg 871 days ago
Yes, I got a 1099-INT from the IRS.
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bombcar 870 days ago
In some cases (depending on your tax situation) other forms of bonds (municipal/state) may be better because of how or if they get taxed.
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loeg 867 days ago
I did not deliberately overpay as an investment strategy :-).

Last time I looked, you needed to be in a higher tax bracket than I was to make Muni bonds worth it, in part because my state (WA) does not have income tax. Something like the 35% bracket.

And anyway, my investment strategy is not long bonds at this point in my life.

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