My tax return amount seems too high... should I call the IRS to review it?

So I just finished doing my taxes through one of those online services and I'm honestly in shock at how much I supposedly owe. Last year I got a small refund, but this year they're saying I owe over $2,800! What changed?? I'm still at the same job, making roughly the same amount (got a small raise but nothing major). I did start a small side business selling handmade jewelry on Etsy which brought in about $4,200, but I kept receipts for all my supplies which were around $1,800. I also had some stock investments that I sold for a total profit of about $3,500. I'm wondering if there's some major deduction I'm missing or if the software just calculated something wrong. Would it be worth calling the IRS directly to have them review my return before I submit it? Can they even do that or am I just being naive? I've never owed this much before and honestly can't afford to pay this right now. Has anyone else experienced a shocking jump in what they owe? Should I try a different tax software or hire a professional instead of calling the IRS?

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18 comments

Dylan Cooper

•8M

The IRS won't review your return before you file it - that's not a service they provide. They can answer procedural questions, but they won't check your calculations or suggest deductions. Your situation has several clear reasons for the tax increase. First, the side business income of $4,200 minus $1,800 in expenses equals $2,400 in self-employment income. You owe both income tax AND self-employment tax (about 15.3%) on that amount. The SE tax alone could be around $367. Second, your $3,500 in investment gains is likely being taxed. Depending on whether these were long-term or short-term gains, you're looking at either capital gains tax rates or your regular income tax rate. I'd recommend using a different tax software to double-check your results or consulting with a tax professional who can review your specific situation. They might identify deductions you've missed or errors in how you've entered information.

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Dylan Cooper

•8M

Yes, you're absolutely right about the quarterly estimated payments. For self-employment income, you're generally expected to make quarterly estimated tax payments throughout the year rather than paying it all at tax time. If this is your first year with self-employment income, you might not face penalties for not making these payments. However, going forward, you should plan to make quarterly payments to avoid underpayment penalties in the future. The IRS generally expects you to pay taxes as you earn income throughout the year, not just on April 15th.

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Dmitry Volkov

•8M

I was in a similar situation last year with a huge unexpected tax bill. I tried for WEEKS to get through to the IRS with questions but kept getting disconnected or waiting for hours. Then I found https://taxr.ai and it was a game-changer. You upload your tax docs and AI analyzes everything - found $1,890 in deductions I missed for my side business! Way more thorough than the regular tax software I was using. The best part was getting expert answers about my specific situation without the crazy wait times. They explained exactly why my tax bill was so high and showed me legitimate ways to reduce it.

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Dmitry Volkov

•8M

It definitely checks if you're claiming things correctly - their system reviews everything against current tax laws and flags anything that might increase audit risk. They're actually more conservative about deductions than some other services I've used, but they find ones that are legitimately applicable to your situation. The main difference from TurboTax or H&R Block is that taxr.ai is much more specialized for people with complex situations like side businesses, investments, or unusual deductions. The regular tax software tends to use a one-size-fits-all approach, while this gives you personalized analysis based on your specific documents and situation. They caught several deductions related to my home office and vehicle use that TurboTax never even asked me about.

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StarSeeker

•8M

Just wanted to update after trying https://taxr.ai because of this thread. My situation was similar - owed way more than expected because of my photography side hustle. The analysis found $1,240 in deductions I had completely missed! Things like partial internet costs, software subscriptions, and even a portion of my phone bill that were legitimate business expenses. What really helped was getting clear explanations about self-employment tax (which I didn't understand before) and how to properly categorize different types of expenses. The service literally paid for itself many times over. My tax bill went from terrifying to manageable! Going to use it for quarterly estimates this year too so I don't get surprised again.

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Miguel Ortiz

•8M

If you DO need to actually speak with someone at the IRS (which might be worth it for planning next year's taxes), good luck getting through. I spent 4+ hours on hold last month and got disconnected TWICE. Then my accountant told me about https://claimyr.com - they basically hold your place in line with the IRS and call you when an agent is ready. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was skeptical but desperate. Got a call back in about 90 minutes with an actual IRS agent on the line! They answered my questions about setting up quarterly payments for my side business income so I won't have this problem next year.

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Miguel Ortiz

•8M

They don't intercept the call or talk to the IRS for you. The service basically navigates the IRS phone tree and waits on hold in your place. When they finally reach a human IRS agent, they conference you in so you're talking directly to the IRS. You handle the entire conversation yourself - they just saved you from the hold time. I had the same concern, but it's completely legitimate. The IRS never knows you used a service - from their perspective, you just called and waited on hold like everyone else. You're still the only one talking to them about your tax information.

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Connor Murphy

•8M

I need to eat my words from my earlier comment. After sitting on hold with the IRS for 3+ hours yesterday and getting disconnected, I broke down and tried Claimyr out of desperation. I was 100% convinced it was a scam but figured it was worth a shot. Got a call back in about an hour with an actual IRS agent on the line! Completely legitimate. The agent helped me set up a payment plan for the taxes I owe, and I didn't have to waste an entire day on hold. I'm still shocked it actually worked. Definitely using this every time I need to call the IRS from now on.

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Yara Sayegh

•8M

You're right that the rules for home office deduction are strict. You need a space used "regularly and exclusively" for business, so a dining table that's also used for family meals wouldn't qualify. However, if you have a dedicated corner of a room with a desk that's only used for your business activities (taking product photos, listing items, managing orders, etc.), that specific area might qualify. You'd calculate the percentage of your home's square footage that this space represents. Many people miss out on this deduction because they think they need an entire separate room, but even a dedicated portion of a room can sometimes qualify.

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