Update on my IRS taxes

[Carmella]

That's great Zombie13 I expect we will have to pay since we have always had to pay for many years. I really need to change my withholding or make sure we set money aside to pay taxes.

[Zombie13]

Carmella, that is wonderful news -you'll finally be able to be current on those cruddy federal taxes!
So far, we have been very lucky never to get behind and owe more than we could pay all at once.
Most years, we got a decent refund even after my engineer husband calculated down to the penny early in the year and tried to change the allowances so we would get less money back. I think in Colorado we were always overcharged for the state taxes, but I'm not sure why we usually received a federal refund, even during the BK13.
I am expecting a sizable IRS bill in 2023 because of the increased salary and the $2000 401K that went into default despite our best efforts to keep it paid up and avoid the penalties and fees we will owe next year.
I will definitely post how it turns out, in case another forum user couldn't prevent a 401K default and is dreading the potentially expensive consequences.
Of course, if any relocation costs that the Washington company didn't cover end up being eligible for a refund through the IRS, then that might offset what we owe enough to make that 401K penalty and raise not as devastating financially as we anticipate.

And good news is, although we thought we were gonna owe due to the $2k 401K loan from the loathe-worthy company, we still got $$ a refund. So yes, loathe-worthy company, I present to you, my left, and right, middle finger.

[Carmella]

Thanks everyone! Yep it's good to have the taxes paid off as we get ready to pay for 2022 LOL! Good news is that we ought to be able to pay them and not fall behind.

[Zombie13]

Carmella, EhrMahGerd Congratulations!!! Party at Carmella's hooouuuse!! That, is So Awesome!

[eap82]

GREAT NEWS!! Made the last payment for the post petition IRS debt this morning! Met my personal goal to pay off before Christmas!! (it was due by January 18)

I didn't call for the pay off balance so hopefully what I paid is the final amount. I didn't have time this morning to sit home and call them. I will check the balance online next week it should be ZERO. If I owe a few dollars (interest) then I will call for the pay off amount.

That's great!! Going into the new year fresh, what a relief that must be. Happy New Year Carmella

[Zombie13]

Congratulations Carmella!

[shipo]

Congratulations Carmella!

[Carmella]

GREAT NEWS!! Made the last payment for the post petition IRS debt this morning! Met my personal goal to pay off before Christmas!! (it was due by January 18)

I didn't call for the pay off balance so hopefully what I paid is the final amount. I didn't have time this morning to sit home and call them. I will check the balance online next week it should be ZERO. If I owe a few dollars (interest) then I will call for the pay off amount.

[sophieanne]

@Carmella..yay, I’m glad you got this situation sorted out and the end is so close..talk to your payroll department for information on taxes..they can’t advise you but can give you general information.

[eap82]

Carmella I'm so glad to hear you are getting your tax situation sorted. You are well on your way to a new life and financial freedom!

[Carmella]

Something I eventually want to figure out is how much to have deducted extra to avoid having to pay as much when we file. Maybe it's a moot point if my husband decides to retire from full time work within less than 2 years. Maybe I should just wait it out. Our budget is still being adjusted and hopefully the beginning of next year we will have it set and include money set aside for property and income tax, etc. Once the garage repairs are paid and my husband has his own car we can get a better picture of how much money we are spending monthly. I am keeping my second job even though I feel like cutting back especially since I am trying to transition careers if I give up full time clinical work it would be nice to still do this other job that can be 0 to 7 hours a week and keep my clinical skills active. The extra income always helps now especially now that it is really extra income!!

[Barbisi]

Carmella, that is wonderful news -you'll finally be able to be current on those cruddy federal taxes!
So far, we have been very lucky never to get behind and owe more than we could pay all at once.
Most years, we got a decent refund even after my engineer husband calculated down to the penny early in the year and tried to change the allowances so we would get less money back. I think in Colorado we were always overcharged for the state taxes, but I'm not sure why we usually received a federal refund, even during the BK13.
I am expecting a sizable IRS bill in 2023 because of the increased salary and the $2000 401K that went into default despite our best efforts to keep it paid up and avoid the penalties and fees we will owe next year.
I will definitely post how it turns out, in case another forum user couldn't prevent a 401K default and is dreading the potentially expensive consequences.
Of course, if any relocation costs that the Washington company didn't cover end up being eligible for a refund through the IRS, then that might offset what we owe enough to make that 401K penalty and raise not as devastating financially as we anticipate.

[Carmella]

In bankruptcy, the IRS is shockingly easy to do business with.

This was all post petition non payment. I was worried at discharge they would be after us ASAP. But it was so laid back and when I called for my options it was all matter of fact and easy to set up!

[justbroke]

In bankruptcy, the IRS is shockingly easy to do business with.

[MissPhoebe]

I'm glad that the IRS was easy to deal with. It will be a big relief when this is taken care of in a few months.