How can I figure out if I owe the IRS money after missing last year's filing?
Look, I'm in a real mess here and hoping someone can help. Last year was absolute hell for me personally (don't even want to get into the details), but I know that's no excuse for completely dropping the ball on my taxes. I literally didn't file anything for 2023, and now I'm freaking out about it. The thing is, I have no idea if I actually owe the IRS money or if they might even owe me a refund. My job withholds taxes from my paychecks, but I also did some freelance work on the side and didn't pay any estimated taxes on that income (about $3,700 total). How do I figure out if I owe the IRS money? And what's the process for fixing this mistake? I'm nervous about contacting them directly because I don't want to make things worse. Any advice would be really appreciated!
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Giovanni Greco
You can find out if you owe the IRS money by requesting your tax account transcript. This will show any balances due, payments made, and even estimated tax information that can help you figure out your situation. You can request this online through the IRS website by creating or logging into your account at IRS.gov. If you don't want to create an online account, you can also use Form 4506-T to request your transcript by mail, though that will take longer. Since you mentioned you didn't file for 2023, you should definitely file now even if it's late. If you're due a refund, there's no penalty for filing late (though you only have three years to claim a refund). If you do owe money, filing as soon as possible will minimize the penalties and interest that continue to accumulate. For your freelance income, you'll need to report that on Schedule C, and you might owe self-employment tax in addition to income tax on those earnings.
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Fatima Al-Farsi
•Thanks for this info! Quick question - if I request my transcript and it shows I owe money, does that automatically alert the IRS that I'm aware I haven't filed? I'm worried about triggering something. Also, approximately how much penalty might I be looking at for filing almost a year late?
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Giovanni Greco
•Requesting a transcript won't raise any red flags or alert anyone - it's your information and you have every right to access it. The IRS already knows whether you've filed or not, so you're not revealing anything new to them by checking your transcript. As for penalties, there are typically two main ones for late filing: the failure-to-file penalty (usually 5% of unpaid taxes for each month your return is late, up to 25%) and the failure-to-pay penalty (generally 0.5% of unpaid taxes per month, up to 25%). Interest also accrues on the unpaid amount. The exact amount depends on how much you owe, so filing sooner rather than later is always best to minimize these costs.
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Dylan Wright
I was in a similar situation last year and was terrified of dealing with the IRS. After weeks of anxiety, I finally tried taxr.ai (https://taxr.ai) and it was honestly a game-changer. You upload your tax documents and their system uses AI to analyze everything and help determine your tax situation, including if you might owe money. It showed me exactly where I stood with the IRS before I even filed. For your situation with the missed filing and freelance income, it would be perfect since it analyzes your income documents and helps identify potential issues before you file. It gave me peace of mind knowing exactly what I was dealing with instead of flying blind.
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Sofia Torres
•Does this taxr.ai thing actually connect to the IRS systems or is it just making calculations based on the docs you upload? How would it know if you already owe something from previous years?
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GalacticGuardian
•I'm always suspicious of these tax services. How does it handle self-employment income when you don't have official forms? I did gig work and just got paid via PayPal, not formal 1099s.
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Dylan Wright
•It doesn't directly connect to IRS systems, but it analyzes your uploaded documents to give you a clear picture of your tax situation based on the information available. It shows what your expected tax liability should be based on your income documents, which helps you understand if you're likely to owe or get a refund. For self-employment income without official forms, it actually handles that really well. You can upload PayPal statements or even just enter the income manually, and it helps calculate your estimated self-employment tax and income tax. It also identifies potential deductions you might be eligible for that could reduce what you owe, which was super helpful for my side gig income.
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GalacticGuardian
Update: I took the advice about taxr.ai and decided to give it a shot despite my initial skepticism. Really glad I did! I uploaded my W-2 and PayPal statements for my gig work, and it immediately showed me that I was likely owing about $840 to the IRS based on my freelance income. The breakdown was super clear - showed exactly how much was for self-employment tax vs regular income tax. The best part was it identified some deductions for my home office and business expenses that I didn't realize I could claim, which brought down what I owed. I was able to file with confidence instead of just guessing. Definitely worth checking out if you're in a similar boat!
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Dmitry Smirnov
If you need to actually speak with someone at the IRS about your situation (which might be a good idea if you owe a significant amount), good luck getting through on their phone lines. I spent DAYS trying to reach someone. Finally used Claimyr (https://claimyr.com) and they got me connected to an IRS agent in about 15 minutes instead of the hours I was spending on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c For your situation, talking directly to an IRS rep could be really helpful since you missed a year of filing and have freelance income. They can tell you exactly what you owe, set up a payment plan if needed, and sometimes even reduce penalties if you explain your situation.
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Ava Rodriguez
•Wait, how exactly does this work? How can they get you through the IRS phone system when nobody else can? Sounds like either a scam or they're doing something sketchy to jump the line.
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Miguel Diaz
•Yeah right. There's no way this actually works. I've tried calling the IRS like 20 times this year. Nobody has some magical way to get through their phone system. They probably just keep your money and then tell you they couldn't get through.
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Dmitry Smirnov
•It's basically an automated system that waits on hold for you. When you sign up, they use automated technology to wait in the IRS phone queue on your behalf. When their system finally reaches an IRS representative, you get a call connecting you directly to that agent. No more waiting on hold for hours. I was super skeptical too until I tried it. They don't answer questions for you or pretend to be you - they literally just handle the hold time and then connect you directly with the IRS. The reason it works is they have technology dedicated to staying on hold whereas most of us give up after an hour or two. Nothing sketchy about it - you're still talking directly to official IRS representatives.
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Miguel Diaz
I can't believe I'm saying this, but I tried that Claimyr service after posting my skeptical comment, and it actually worked! After failing to get through to the IRS for weeks, I was connected to an agent in about 25 minutes. The agent confirmed I did owe about $1,200 from a missed filing last year, but she was surprisingly helpful and set me up with a payment plan with manageable monthly payments. She even explained how I could request an abatement for some of the penalties based on my personal circumstances. Saved me hours of frustration and probably hundreds in potential additional penalties if I'd kept procrastinating. Sometimes it's worth admitting when you're wrong!
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Zainab Ahmed
Pro tip: If you end up owing the IRS, DON'T ignore it. They can garnish wages, put liens on property, levy your bank accounts, etc. But they can also be surprisingly reasonable if you're proactive. I owed about $5,900 and qualified for a payment plan where I pay just $210 per month. The interest still accumulates but it's way better than the alternatives. Also check if you qualify for the Fresh Start program if you owe a lot.
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Connor Gallagher
•What's the maximum amount they'll let you set up a payment plan for? I might owe around $12k from missed filings during a rough patch and I'm freaking out about how to handle it.
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Zainab Ahmed
•For smaller amounts (under $50,000), you can easily set up a payment plan online. For larger amounts, you might need to provide financial statements and call them directly, but they can still work with you. If you're worried about owing $12k, you can request a 72-month payment plan which would put your payments around $200-300 per month depending on interest. The key is to file your returns ASAP even if you can't pay right away, as the failure-to-file penalties are much steeper than failure-to-pay penalties.
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AstroAlpha
Has anyone used any of the tax relief companies that advertise on the radio? I owe around $8k to the IRS from 2022 and these companies claim they can settle for "pennies on the dollar" but it sounds too good to be true.
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Yara Khoury
•STAY AWAY from those tax relief companies! My brother paid one $4,000 and they did literally nothing he couldn't have done himself for free. Those "pennies on the dollar" settlements (called Offers in Compromise) are extremely rare and most people don't qualify. They just take your money and submit basic paperwork.
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Keisha Taylor
Don't forget that if you had health insurance through the marketplace with premium tax credits, failing to file can mean you have to repay ALL of the premium assistance you received. That's what happened to my cousin - he thought he'd get a small refund but ended up owing over $7,000 because of the premium tax credit repayment.
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