I thought I could handle my own taxes and got a $2,400 bill

Last week I got a letter from the IRS saying I owed money from last year. I used a free online service to file and missed that I had to pay estimated taxes on some freelance work. The total was $2,400 due in 30 days. I had to pull from my emergency fund to cover it, which set me back months. Now I know to hire a real accountant if I have more than one income source. Has anyone else messed up their taxes this bad?

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3 Comments

aaronf405mo ago

Missing estimated payments is a common mistake, not a disaster. A $2,400 bill from the IRS sounds scary, but it's a fixable problem. You used your emergency fund for its exact purpose, so that's actually a win. Plenty of people get letters and set up payment plans. An accountant is a good idea, but this is more of a learning moment than a major financial setback.

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william8163mo ago

$2,400 is definitely a punch in the gut but like you said, it's not a life ruiner. Setting up a payment plan with the IRS is actually pretty straightforward, I've done it twice now and they just take a little bit each month. Plus once you start paying quarterly, you get better at estimating and it usually gets smaller over time.

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wesleybutler5mo ago

Ah, the IRS... my favorite pen pal.

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