mine took 9 months last year but i got interest added atleast 🤷‍♀️

CP75 audits are definitely rough - had one last year and it took about 8 months total. The key is to respond quickly with all the documentation they request (W-2s, bank statements, childcare records if you claimed EIC with kids). Don't wait for them to send follow-up letters. Also keep copies of everything you send them because they "lose" stuff sometimes. The interest does help a little when you finally get your refund but obviously waiting that long sucks.

Was in your exact shoes last year with $38k self-employment and two kids over 18. Thought I was going to owe thousands, but you know what? After claiming my legitimate business deductions (home office, mileage, supplies, health insurance premiums), the QBI deduction, and finding out my 19-year-old still qualified as my dependent because she was a full-time student, I only ended up owing $2,100. Not great, but way better than the $7k I was panicking about! Set up an IRS payment plan and now I'm making quarterly payments for 2024. Doesn't the whole self-employment tax system seem designed to trip us up?

I'm in almost the identical situation - self-employed with around $36k income and two adult kids (19 and 21). What I learned from my tax preparer last year is that the key factors are: 1) Whether your daughters qualify as dependents (the college student rule for the 20-year-old is crucial), 2) Tracking every possible business expense you can legitimately claim, and 3) Don't forget about the QBI deduction which can reduce your taxable income by up to 20%. Based on similar situations I've seen in this community, you're probably looking at owing somewhere between $3,000-$5,000, but it could be significantly less with proper deductions. The good news is the IRS offers reasonable payment plans if you can't pay it all at once. Have you been keeping receipts for business expenses throughout the year?

Has anyone used any good tax software to make the learning curve easier? I'm starting VITA training next week and already dreading it based on what I'm hearing here.

Former VITA volunteer here - I totally get the yawning! I almost quit during training because it felt like memorizing a phone book. But honestly, once you start working with real taxpayers, everything changes. The "aha moments" when you help someone discover they qualify for the Earned Income Tax Credit or when you explain why they're getting a bigger refund than expected - those moments make all that boring code memorization worth it. Plus, you'll be surprised how much you retain once you start applying it practically. My biggest tip: don't try to memorize everything. Focus on understanding the concepts and knowing where to look things up. Most VITA sites have great resources and supervisors to help when you get stuck. The goal isn't to become a walking tax code - it's to help people navigate their tax situations with confidence. Stick with it through at least one volunteer season before deciding if tax work is for you. The training is definitely the worst part!

2 Has anyone used the Electronic Federal Tax Payment System (EFTPS) for making quarterly payments? I just registered for it after getting hit with the same penalty, but I'm finding the system pretty confusing to navigate.

I went through this exact same situation last year! The key thing to understand is that the IRS requires taxes to be paid throughout the year, not just at filing time. Since your husband's 1099 income has no withholding, you need to make up for it somehow. Here's what worked for us: I calculated our total expected tax liability for the year, subtracted what was already being withheld from my W-2, then divided the remainder by my remaining pay periods. I submitted a new W-4 to increase my withholding by that amount. This approach was actually easier than making quarterly payments because it's automatic - no remembering due dates or scrambling to make payments. Just make sure to recalculate if either of your incomes changes significantly during the year. One warning though - don't forget about self-employment tax on the 1099 income! That's an additional 15.3% on top of regular income tax that catches a lot of people off guard. Make sure you factor that into your calculations.

Has anyone used the IRS Tax Withholding Estimator for this kind of situation? I tried using it with multiple income sources but got confused about how to enter the self-employment part.

Ruby, you're in a pretty straightforward situation despite having multiple income streams. Here's the breakdown: Your self-employment income of $1,450 will trigger self-employment tax (about $205 as Micah calculated), but since your total annual tax liability will be well under $1,000, you can skip quarterly payments and just pay when you file. One thing to watch out for - make sure your W-2 job is withholding enough federal tax. With $2,300 from the library job, they should be withholding some federal income tax even though your total income might be below the standard deduction threshold. You want to avoid owing a big chunk at tax time. For Michigan specifically, you'll owe about $62 in state income tax on your self-employment income (4.25% of $1,450), but again, this is small enough that you don't need to make estimated payments. Keep good records of your freelance expenses - business supplies, computer equipment, etc. These can reduce your self-employment income and lower that $205 self-employment tax.