I owe taxes but the IRS website says I owe nothing

[rjs]

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@Sophiphi98  wrote:

34 says $2.00

35a also says $2.00

and 36 is blank

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Then you are getting a refund of $2. You do not owe any federal tax.

Are you sure it says $2.00 and not $200? There are no cents on Form 1040. Or does it just say $2, without the zeros?

[Sophiphi98]

Oh maybe it just says 2 but I only got $2.00 hahaha. Thank-you so much by the way I’ve been freaking out all night 

[Sophiphi98]

This is my first time ever doing my own taxes and I’m a sub contractor so it’s a little difficult for me so I’ve been scared I messed them up 

[VolvoGirl]

Did you have a profit  on your self employment income on Schedule C?  Or show a Loss?   Did you also have job income on a W2?   You usually need to have tax withholding taken out of your pay to get a refund on your tax return.   

Maybe the $560 taxes you owe is an optional estimated payment for NEXT year 2022?  

[Sophiphi98]

I’m not sure about the first two questions you asked but I did not have a w2. And possibly. There’s a lot I need to read up on and learn for next year so I can be better prepared

[VolvoGirl]

Here's some info for you.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  Here's a Schedule C  https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

You will need to keep good records.  You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small and if you don't get the 1099NEC.

You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc or 1099NEC it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23.  The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

[VolvoGirl]

And for this year 2022.  Are you making more income?

You might need to send in quarterly estimated payments if you don't have enough other tax withholding (like from W2 wages) to cover any self employment tax on a business profit.

Turbo Tax will calculate the 1040ES estimated payments

https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estim...

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

    90% of the tax to be shown on your current year’s tax return, or

  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

To prepare estimates for next year you start with your current return, but be careful not to change anything.  For Online returns, if you can't get back into your return, Click on Add a State to let you back into your retun.

You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

Or Go to….

Federal Taxes or Personal (Desktop H&B)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

To just estimate the remaining quarters put in that you paid $1 for the missed quarters so it will only calculate the remaining quarters.

How to make the Estimated payments

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-make-estimated-tax-payments/00/25875

Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

The 1040ES quarterly estimates are due April 18, June 15, Sept 15 and Jan 17, 2023.  Your state will also have their own estimate forms.

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2022 Estimate

[Sophiphi98]

No I’ll make about the same, I don’t work much, I still live at home and am only part time. My bills are very minuscule so I don’t really have to work a lot. 

[Critter-3]

@Sophiphi98  

You may have had a tax bill of $560 however the credits or payments you made like withholding paid off the tax bill and gave you a two dollar refund. Look back at the 1040 between the total tax line and the refund line to see which credit paid off the balance due.

[antoinette-antwi]

how do i find what i own for my taxes  2021

[NCperson]

@antoinette-antwi - assuming you completed your 2021 tax return, look at line 37 of Form 1040

[xmasbaby0]

@antoinette-antwi 

This was answered yesterday in your other thread:

https://ttlc.intuit.com/community/user/viewprofilepage/user-id/5083944

[vasile1]

No, the amount you really owe is not shown in line 37 by the piece of crap called TurboTax.

The amount in that line includes a bogus "underpayment penalty" as calculated by TT.

Unless you fiddle with the Form 2210 yourself to override such imbecile decision, TT will add that bogus amount to the total amount owed.

I'm wondering how was this piece of shaite software able to get away with this, for such a long time.

Intuit is quietly milking taxpayers of more money than they should've. By not giving a chance to such tax payers to discuss about such "underpayment penalty" directly with IRS.

Lame software, piece of crap.

[NCperson]

@vasile1 unless you communicate with the IRS via form 2210, the underpayment penalty calculated by Turbo Tax is the same way the IRS would calculate it.  

"unless you fiddle with form 2210" ??????   THAT is the prescribed IRS process!!! 

You can overrise the underpayment penalty calculated on Line 28 by completing form 2210.  I think you are spilling your venom in the wrong place.  Form 2210 (and form 2210ai) are a hassle to complete, but that hassle is created by the IRS and not Turbo Tax.  Turbo Tax is just following the IRS rules.

DOGE really doesn't want you "discussing" it directly with the IRS, unless you complete Form 2210 first. 

[vasile1]

Hi @NCperson ,

Thanks for your comment.

Re: "unless you communicate with the IRS via form 2210, the underpayment penalty calculated by Turbo Tax is the same way the IRS would calculate it. "

My MAIN BEEF with TurboTax is this: I wanted the alleged penalty to be assessed by IRS directly, without any hand-holding from TurboTax (which is also a** kissing IRS!)

And sadly, this software HAS BLATANTLY PREVENTED me from doing so, against my wishes.

I wish to be in control and no hand holding from overzealous piece of cr*p software that licks IRS's ...

Is there a way to fix this? I've already e-filed my 2024 tax return about 3 weeks ago.

But postponed paying the tax that I owed since then. And yesterday, April 4th 2024, before deciding to finally paying what I owe (and reported in TurboTax in that line 37), I told to myself: Let's do one more check and quickly go through the PDF copy of the same tax return that TurboTax has e-filed already, on behalf of me. And to my surprise, when I subtract all the tax that I have paid over the course of 2024 tax year (including my voluntary additional tax payment of about $10K made in December 2024), FROM the total tax owed for all income, I notice that the result does NOT match the balance showing as owing by TurboTax in the tax return. Because of a $251 underpayment penalty sneaked by TurboTax, BEHIND MY BACK - even when I told TurboTax during the Interview-style Questionnaire, that I want TurboTax to keep its hands off from that penalty calculation and let instead IRS calculate (and potentially bill me for) it - WAS ADDED to the actual tax balance owed!

After seeing the discrepancy, I decided to pay through an e-payment scheduled through IRS's "My Account" web site, all the balance MINUS the $251, that is, I decided to pay only the actual tax owed without any "penalty" assessed by an overzealous, IRS a**-licking TurboTax software piece of crap.

And then as a 2nd step, I decided to create an amended 2024 tax return, again through TurboTax (thinking that all hope was not lost). But in the amendement workflow, TT has never asked me IF I have paid the originally stated balance, and HOW much. It asked only some illogical, unclear question such as "when will you pay the original balance? You can leave this field blank if you do not wish to pay before the extension period begins" or something like that. I entered in that date field, the date when I initiated the payment (which is without $251 bogus, IRS a**-licking "penalty" added by TT), which was April 4th 2024.

The amended return indicated zero tax owed, and zero refund. It DID NOT show though, any penalty, and its 1040 form shows the correct amount that I should've paid in the 1st place via the originally e-filed 2024 tax return, and no more bogus $251 additional penalty.

So that was the only difference.

I also had to indicate a reason for the existence of such 2024 amended return, which I did.

I stated in that field something like "The total tax owed was incorrect, due to a TurboTax bug. The correct total tax owed amount should be xyz (which is the balance showed in the orig return MINUS $251)".

Then I have e-filed such amended return, on the same day (April 4th 2025).

Is there a hope that IRS will see the amended return in a timely manner (i.e. before the April 15th 2025 tax deadline), and in a way that it would take over / override the original return, to the extent that it will no longer show the $251 penalty added to the total amount owed?

The IRS's "My Account" still doesn't show my balance for 2024. It shows "information not yet available", even after having waited for more than 3 weeks after my original 2024 return was e-filed. It does show that return's data in the Tax Records / Transcripts. In which one can see the total balance as was reported by TT software (it does not even show a separate line with the actual tax figured owed - it shows only the tax + penalty as one line, and the penalty on the next line).

So my question is: Can I hope that this 2nd e-filing that I did for 2024 tax year, which is an amended 2024 tax return will take over the 1st one, before April 15 2025, and leading to a current account balance showing on IRS "My Account" web site as $0.00 (from a previous balance of what TurboTax said but without $251, and which would become $0.00 by the virtue of my April 4th 2025 scheduled payment which is again without that $251 amount)?

OR, IRS will not see the amendment in a timely manner, and still show -$251 as outstanding balance? In such case, can I afford waiting after April 15 2025 and pay that ONLY if IRS asks me to? Or will I be subject to additional interest, which would start to accrue beginning with April 16th 2025? So my question is: IF IRS deems that what TT said as total balance as "correct" and I am bound to that, and sees that I did not pay the remaining $251, will it consider it part of the overall tax liability and subject immediately to interest? Or I will have some room to breathe and be subject to about 30-days additional grace period from IRS to pay what is considered a separate thing aka an "underpayment penalty"?

I guess it's the time for me to look for a better tax software out there, going forward! H&R Block, here I come!