I Owed the IRS More Than $10,000 This Tax Season. Here's How I Handled It
How I Managed a $10,000 Tax Bill as a Self-Employed Individual
Most tax filers get refunds. Not me. Read on to see how I managed a whopper of a tax bill for 2023.
Challenges of Being Self-Employed
As a self-employed individual, owing the IRS instead of receiving refunds is common. Estimating and setting aside correct tax payments can be challenging due to varying income sources and deductions.
Financial Preparedness is Key
Preparing in advance and keeping extra cash on hand can help in managing unexpected tax bills without resorting to installment payment plans or accruing interest on tax obligations.
Importance of Accurate Quarterly Tax Payments
Working closely with accountants for precise estimates and considering all income sources can minimize surprises during tax season, especially for self-employed individuals.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.