I haven’t done them only because I’ve been caught up in health problems. I have 4 W2s, unemployment, and a 1099 for side gig.
I’m sure it’s going to be a bunch I’ll owe but what can I do to pay as much as possible? I’m not running from this and just need advice
Undeniably terrified of doing my taxes.
byu/Altruistic_Ad_5507 intax
Posted by Altruistic_Ad_5507
9 Comments
It sounds like what you have is mostly just data input, so ultimately shouldn’t be that difficult. I do understand the anxiety portion of it though and see it often with my clients. If it makes you feel more confident to hire someone then that’s fine, but still do your best to take initiative to understand a bit of what’s happening and what you’re signing off on.
First thing is to actually do the work and see if you owe and how much. Is it possible your withholdings on your W2s were enough to cover your liability?
If you do owe, pay as much as you can when you file (or by April 15). When the IRS sends you a letter for the rest of the amount, that letter will contain information on how to set up a payment plan if you don’t have the full amount at that time
In your situation it sounds like you’ll probably owe but depending on what the numbers are it may not be as bad as you think. Only way to find out is to do the input – pay whatever you can afford to by 4-15 and you can set up a payment plan for the rest.
Just ignore it. It will go away eventually.
Nah jk I feel your pain. You’re def gunna owe. Multiple w-2s by itself usually causes you to owe.rip off the bandaid and throw em in a software.
Failure to file penalties are worse then failure to pay
Go to a VITA TCE location like AARP TAX AIDE and get your tax return done for free. We can handle unemployment, and a few W2’S and a 1099 with no problem.
Put on your big kid pants. Put the numbers in methodically. It’s a pain nothing to be terrified of. If you owe then set up a payment plan. Simple.
I don’t like the advice you’re being given. So here goes. You can do this! I would start out with [Freetaxusa.com](http://Freetaxusa.com) There you can do your federal taxes for free. It’s pretty simple as the website just asks you questions and you answer them. It tells you where to put the numbers from your forms.
If this gets to be too much I would get an appointment at a local tax shop (HR Block, Jackson Hewitt, Liberty). Why those, because your return isn’t complicated and they’re cheaper than going to a CPA.
If you do end up owing, please realize that you have options. The IRS is very reasonable if you don’t ignore them. They have all kinds of payment plans. You can sign up for these payment plans online after you have filed your return at this website [https://www.irs.gov/payments/payment-plans-installment-agreements](https://www.irs.gov/payments/payment-plans-installment-agreements) Scroll about half way down the page and you’ll find short and long term payment plans.
You have time to do the tax but don’t postpone it or you end up paying tax penalty for not filing the tax on time. You can do it. FreetaxUSA sounds legit.
FreeTaxUSA will prepare your federal return for free and your state return for $15.99.
If you have all of your W-2s and 1099s, you have at most an hour of data entry and answering questions that FreeTaxUSA will ask. It is important to file by April 15th to avoid the failure to file penalty of 5% per month of the unpaid tax. which maxes out at 25% of the unpaid tax, It is cheap by comparison to pay 0.5% per month in interest on the unpaid balance, after paying as much as you can with your tax return.
If you had no tax withheld, there will also be an underpayment penalty unless yo owe less than $1000. My experience has been that dreading something is usually worse than doing the thing that I need to do.