Consequences of not filing taxes for a year? What happens if you skip filing?

damn fr? even if its just like a regular w2 job? 😬

Yes, absolutely. The IRS gets a copy of your W2 so they know you had income. They'll eventually create a substitute return and it won't include any deductions you might be entitled to.

how good is it really? seems sus that AI can figure out tax stuff 🤔

Its actually amazing. I was skeptical too but it saved me from making a huge mistake with my unfiled returns. Shows you exactly what the IRS knows about your income and what steps to take

just tried it and holy crap you're right! wish I knew about this sooner, would've saved me so much stress 💯

bro what?? 8k from just one year???

yup. The penalties stack up FAST. Don't be a clown like me 🤡

same thing happened to my roommate. IRS dont play around fr fr

This is really helpful info! As someone who's been procrastinating on filing, hearing from someone who actually works in tax prep makes it feel more real. Quick question - if someone files late but doesn't owe anything, do they still get hit with penalties? Or is it only when you owe money that the penalties kick in?

@Noah huntAce420 Good question! If you don t'owe money meaning (you re'due a refund or break even ,)there s'actually no failure-to-file penalty. The IRS only charges that penalty when you owe taxes and file late. However, you still want to file because if you re'owed a refund, you only have 3 years to claim it. Plus some benefits like earned income credit require filing even if you don t'owe anything. So while no penalties if you don t'owe, you could be leaving money on the table!

Wow, a tax lien on their house?! That's terrifying. I had no idea the IRS could go that far. I've been putting off filing because I thought it was just paperwork hassle, but reading all these stories is really eye-opening. Sounds like even if you think you don't owe anything, you should still file just to be safe. Thanks for mentioning those free options too - I didn't know about FreeTaxUSA or IRS Free File. Definitely going to look into those this weekend!

Oof, that sounds like a total mess! I'm actually in a similar spot right now - made about 35k last year and have been putting it off because it feels so overwhelming. When you say they didn't include your deductions, what kind of stuff did they miss? I'm wondering if I might be in the same boat where I'd actually get money back if I filed properly but would owe if they just go off my W2. This whole thread is honestly scaring me straight - definitely filing this weekend before I end up with a horror story like yours! 😅

@Alexis Robinson They missed stuff like the standard deduction which (was $12,950 for 2022 ,)plus I had some student loan interest deduction and a small amount of charitable donations. When the IRS does their substitute return, they basically just take your gross income and calculate taxes on that without any deductions at all. So even though I only made 30k, they treated it like I owed taxes on the full amount. Once I actually filed and claimed my deductions, I ended up getting a small refund instead of owing money! Definitely file ASAP - you ll'probably be pleasantly surprised. The IRS substitute returns are always way worse than what you d'actually owe.

Welcome to the community! Glad this thread helped change your perspective - that's exactly why these discussions are so valuable. I was in the same boat a few years ago, totally overwhelmed by the whole process and convinced it would just be easier to ignore it. But honestly, once you actually sit down and start, it's usually not as bad as it seems in your head. Since you mentioned you're new to this, I'd definitely recommend starting with one of those free filing options people mentioned earlier - TurboTax Free or FreeTaxUSA are pretty user-friendly and walk you through everything step by step. The peace of mind you'll have after filing is seriously worth way more than the few hours it takes to get it done!

This is such great advice! I'm also pretty new to this whole community and have been reading through everyone's experiences. It's honestly wild how many people have gone through the exact same thought process of "maybe I'll just skip it this year" only to regret it later. The fact that you got it done in just 2 hours with FreeTaxUSA is really encouraging - I keep psyching myself out thinking it's going to take forever or that I'll mess something up. But hearing all these real stories from people who've actually been through it makes it seem way less scary than my brain is making it out to be. Definitely going to check out FreeTaxUSA this weekend. Thanks for sharing your experience! 🙏

Welcome to the community! Your situation sounds exactly like mine was a few months ago - that whole "maybe I can just pretend this doesn't exist" mindset is so tempting but reading through all these stories really shows how that never ends well. What really got to me was learning about those substitute returns where the IRS just calculates based on your W2 without any deductions. Like, they literally make it worse for you than if you just filed yourself! I ended up using TurboTax Free and honestly, it was way less painful than I expected. The hardest part was just starting, but once you get going it's pretty straightforward. You've got this - and hey, at least we're all figuring it out together! 💪