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Been dreading taxes

March 1st, 2019 at 09:40 pm

I didn't know what to expect with our taxes this year. We hardly made anything in 2018, then my husband was working as a contract employee with no taxes taken out. But...as of right now, we owe about $400. We will need to find that somehow. Its not a bill that we can put off. But I am going to check a couple of numbers and see if they are right on the business side.

I don't have any financial updates really. I got our cell phone bill reduced $8.99. And our mortgage will be going down about $65 a month starting in April. Its going to take a long time to chip away at this.

7 Responses to “Been dreading taxes”

  1. crazyliblady Says:
    1551481365

    Congrats on your progress. Yes, when you have a lot of debt, it does seem like it takes forever to make a difference, but even the small thing you did of reducing your cell phone cost will make a difference overall. And the reduction in your mortgage will also help. Can you consolidate any of your credit card debt to another existing one with a lower rate? Do you have any way to make extra money to help pay off the tax bill?

  2. PatientSaver Says:
    1551482112

    Mortgage bills rarely go down...what's your secret?

    Chopping off $9 on the phone bill must be very satisfying. Great job!

  3. mumof2 Says:
    1551486638

    every bit helps even a few dollars...every month you will get closer to your goal...it will take time but you will get there...sorry about the tax bill but can you guys mow lawns or something for a few weekends to help pay it? good luck wish you all the best

  4. creditcardfree Says:
    1551494906

    Sorry about the unexpected tax bill. Do you have anything to sell or a service you could provide for cash to get the money for that?

  5. Amber Says:
    1551527614

    I’m sorry about the tax bill, hang on in there this is a minor bump in the road.

  6. rob62521 Says:
    1551647985

    Ouch on the tax bill. Hope you can scrape up the money so you don't have to pay interest or penalties. Yay on lowering the phone bill a bit.

  7. Dido Says:
    1551829499

    Good luck coming up with the money for taxes. Since your husband is self-employed, he will be subject to the 15.3%, so it's good to plan ahead for that.

    In any case, even if you don't have the money, make sure you file your return on time.

    One of the big taxpayer misconceptions is that the IRS cares more about your tax payments than about your filing your return. But based on their penalties, they care 10x as much about your filing than about your paying! In other words, the penalty for not paying your taxes on time is just 1/10th the amount (half a percent a month on the balance due) as the penalty for failing to pay (5% a month). (Interest also applies, in addition to penalties.) Pay what you can and get the return in by the 15th; if you finish paying the following month, it won't cost you all that much in terms of interest and penalties (which of course it would be better to avoid, but you do what you can).

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