I am a part-time independent contractor who made more than $400 but cannot afford tax payment. I only made $5000 this year, and I am unemployed now. What should I do?

newbietaxer — Mon, 03 Jun 2019 20:14:10 GMT

The first thing you should do is to accurately and timely...

MichaelMc — Mon, 03 Jun 2019 20:14:11 GMT

The first thing you should do is to accurately and timely file your income tax return, even if you cannot afford to pay your taxes at this time. Failure to file on time will result in penalties and interest which will continue to accumulate over time.

As you are aware, if you are a self-employed independent contractor, you must also file your self-employment (FICA) taxes if you had net earnings from self-employment of $400 or more.

The IRS will let you pay off your federal tax debt in monthly payments through an installment agreement.

If you haven't filed yet, step through the File section of TurboTax until you reach the screen How do you want to pay your federal taxes? Select the installment payment plan option, click Continue, and follow the onscreen instructions.

If you already filed, or you're unable to find this option in TurboTax, you can apply for a payment plan at the IRS Payment Plans and Installment Agreements web page (make sure you've filed your return before applying through their site).

State Payment Plans

Most states offer some kind of installment payment plan as well, although the procedure varies from state to state.

The easiest way to obtain the info you need is to simply search the internet using the phrase <state> tax payment plan (for example, New Jersey tax payment plan or Illinois tax payment plan). You can also try contacting your state Department of Revenue for details.

topic I am a part-time independent contractor who made more than $400 but cannot afford tax payment. I only made $5000 this year, and I am unemployed now. What should I do? in Get your taxes done using TurboTax

I am a part-time independent contractor who made more than $400 but cannot afford tax payment. I only made $5000 this year, and I am unemployed now. What should I do?

The first thing you should do is to accurately and timely...