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Has anyone else noticed that the IRS website looks like it was designed in 1995 and never updated? π I swear I get eye strain just looking at it lmao
Friendly reminder to everyone: ALWAYS keep copies of your tax returns and any correspondence with the IRS. You never know when you might need that info, and it can save you a ton of headache down the road.
Question for the OP: How long have you had your payment plan? Sometimes if it's been a while, you might qualify for an offer in compromise to settle for less than you owe.
Pro tip: Always request a transcript of your account when dealing with IRS issues. It shows all transactions and can help you spot any discrepancies. You can get it online through their website.
Pro tip: if you filed electronically and chose direct deposit, it should come faster. If you did paper filing or requested a paper check, prepare to wait... and wait... and wait...
Anyone else notice how the IRS can take our money instantly but takes forever to give it back? π€ Make it make sense!
Conspiracy theory: they're using our refunds to fund a secret underground city for lizard people π¦π
All of these comments about withholding are spot on, but one more thing nobody mentioned: if you have any side income, investment income, or interest that isn't having taxes withheld, that would also contribute to owing at tax time. Even something as simple as a high-yield savings account or stock dividends can create tax liability that your W-4 withholding doesn't account for.
This is really important! I had a similar situation where I was withholding correctly from my main job, but completely forgot about the $15k I made from a side gig. No withholding on that money meant I owed several thousand at tax time despite having "extra" withhheld from my primary paycheck.
Thanks for asking this, I'm glad I'm not the only one (after decades of knowing exactly how I needed to fill out my W-4) that got a sudden surprise of OWING taxes for the first time in forever! It happened a couple of years back, then I found out about the new W4 (maybe it's βimproved?β), then I noticed β2020β on the form β so, apparently, it's taken a few years to start catching up. Taxes are a pain in the keister, I wish they'd stop βfixingβ them! LOL
You're absolutely right about the W-4 changes being the likely culprit here! The 2020 redesign completely eliminated the familiar "allowances" system that many of us relied on for decades. The concept of "single with 0 allowances" doesn't even exist anymore, which is why so many people are getting surprised. The new form tries to be more accurate by asking for specific dollar amounts instead of the old allowances, but it's created this weird transition period where conventional wisdom about withholding doesn't apply anymore. What worked reliably for years suddenly doesn't! For both you and the OP, it might be worth submitting a new W-4 with some additional withholding specified in Step 4(c). For someone at the OP's income level, they might need an extra $200-400 per paycheck withheld to avoid a surprise next year. The IRS has a tax withholding estimator on their website that's pretty helpful for figuring out the right amount. But yeah, I feel your pain - nothing like thinking you've got your taxes figured out only to have the rules change underneath you!
Yuki Nakamura
PSA: Be careful of scams! There are a lot of people out there trying to take advantage of folks dealing with IRS issues. Always double check you're on the official IRS website and never give out personal info over the phone unless you initiated the call.
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Chloe Davis
β’Thanks for the heads up! I'll definitely be careful. Any red flags I should watch out for?
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Yuki Nakamura
β’The biggest one is if anyone asks for payment via gift cards or wire transfer. The IRS will NEVER do that. Also, be wary of unsolicited calls claiming to be from the IRS. They usually contact you by mail first.
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StarSurfer
lol welcome to the club π been dealing with this nonsense for months. good luck!
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