Upset and Venting - Page 2
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  1. #16
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    Quote Originally Posted by NikoSan999 View Post
    Self employed can suck big time.
    You sure aren't kidding! That was how we got hit with our big tax bill. In 2007 we only owned the business for half the year so taxes were low ($1500.) I paid that much to the IRS in 2008 and expected that we would owe at least that much more, maybe a little over that so I was prepared for that but I certainly wasn't expecting t go from, "You owe another $2,000" to "You owe another $17,000." I sure am glad that DH and I are not employees again!

  2. #17
    Registered User Momto5RN's Avatar
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    so sorry we owed 5000 last year because we lost my oldest as a tax deduction , let my oldest dd claim herself and i worked my butt off to pay off debts so made more than i had in pastyears . i was so upset !! we had to take out a loan to pay it off , owing the gvt was just not something i wanted to get into so we got a low interest loan and consolidated some other stuff too,

    luckily we are getting a small return this year as we changed our # claimed etc on dhs paycheck . and i had a slower work year

  3. #18
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    ugh, that is so rough, I'm sorry you're going through this. I know how you feel... here, our standard deduction for our family went from 12,000 euros last year to Zero euros this year and there was no additional withholding. We still haven't gotten the bill and if I think about it I break out in hives. I have no idea where the money will come from and here they have started cracking down and putting people in jail if they don't pay up. The IRS is scary indeed.

  4. #19
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    Wow! I'm so sorry you have to deal with this on top of everything else. Is there any way that you can make out a payment plan? I'm sure they'd be willing to help.

    Good luck to you! *hugs*

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    The IRS isn't hard to work with so long as you are upfront with them and keep your agreement once you make one.

    I don't understand how being self-employed can make you owe a large amount of money at the end of a tax year. I pay my taxes quarterly (when necessary) and generally end up getting money back. When dh worked we figured our deductions each year & he turned in a new W4 (I think that's what it's called) annually.

  6. #21
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    I would second the recommendation to fill out the forms married filing separately and see how that affects your tax bill. It can really change it.

    I also like the idea of filing an extension and delaying the payment until October (6 months from April 15th). In the meantime, whoever is working needs start having a lot more taxes pulled from their paycheck each time.

    Good luck! That has to be painful.
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  7. #22
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    with that kind of price tag..i'd get a second opinion.. from a GOOD tax professional...(not hr block type place) a real accountant...

    may well be worth his fee...

    my dad worked in indonesia and yet still maintained all his canadian residency and status...and his bill was scary huge....i mean more than lots of people earn as a family...

    he finally hired a guy...cost him 1500 and he save tens of thousands...

  8. #23
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    Don't stress....you can work out a payment plan with the IRS. We have one- we are also self-employed and ended up owing quite a bit of money. As long as it is under 25,000 (I think) they will put together a monthly payment plan. Our payment is large and hurts a little, but thankful to have a solution. I think you can even miss 2 payments a year (if you call the IRS) if you need to due to hardship. It was easy to work out and really not so scary at all. I know the IRS sounds scary, but really hasn't been at all for us- and we have owed several times throughout the years.

  9. #24
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    Thanks everyone. I am checking to see if there is interest or anything added to payments when you set up a payment plan. I don't want to add even more to the total. If there is, I will just write the check. sigh.

    Also, I did our taxes 6 ways to Sunday. We basically have to file separately since he was a resident of Texas for 7 months last year and if we filed jointly, he would have to pay Ohio state tax for those 7 months. You cannot file jointly unless you are both residents for the entire year. I was an Ohio resident for the entire year.

    Just sucks paying this much in taxes.

  10. #25
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    Amazing what a mess the IRS can make of our lives without even trying!! If you cannot pay the entire amount with your tax return, then you should be in contact with the IRS about a payment plan. You do not want them to add penalties. Interest you cannot avoid.

    I agree with having a tax CPA review the return. Someone who really knows the tax code can often find ways to reduce your taxes. If you have the funds and meet qualifications, there is still time to make maximum contributions to an IRA to reduce your income.

  11. #26
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    Here are specifics for our IRS payment plan from what I can see on our monthly bill:

    We owe $17,700
    Failure to pay penalty is $798
    Interest charge is $310

    We pay $450 a month.

    We've done this once before and it was a pain, but not horrible.

  12. #27
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    Thanks for the interest information. I still cannot believe we owe this much. It's insane.

    I am not eligible to get a exemption on contributions to an IRA. We both contribute to our 401k's. This year, we are maxing them out. It will save us a little bit next year. I'm just thankful that I wasn't unemployed for too long.

    I'm going to have another CPA look over it. I have my CPA license, but I've never worked in public accounting.

  13. #28
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    We also have a large tax bill this year and I was making PROGRESS on paying down debt and now to add $2500 to that is a huge sidetrack. Hang in there, this too shall pass I promise.

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