I’ve made $23,000 in mostly cash over the past two years. I tried filing last year and was told I owed more than I had left, so I didn’t, and missed my stimulus. Help?

[9a12e7ad117b]

I can’t pay what I don’t have.  Revenue does not equal income.  Can I still get my stimulus from last year?  I am struggling to scrape together enough money to start a small business, and the stimulus checks would cover most of my start-up costs.

[KrisD15]

The only way to get any missing Stimulus payments is by filing a Federal tax return (or an amended return if you already filed a 1040) 

When you file, the tax owed would be subtracted from the credit (missing stimulus payment) so you might not get a refund and might end up owing a tax payment. 

HOWEVER, you should not ignore filing. You can always ask for a payment plan. Interest accumulates, so you're best to get things in motion to square-up your tax situation. 

If you are earning cash as a Self-Employed Taxpayer, you need to pay your FICA (Social Security) tax on that income. 

[9a12e7ad117b]

Thank you for your detailed response!

I do have another hurdle to clear, though.  In the past when I've tried to file my taxes, the software I used (H&R Block) gave me an astronomical figure.  In 2019 I earned about $20,000 and my tax bill came out to $6,000 by their system.  Needless to say, I didn't file because I knew that had to be wrong.  FICA tax is only about 8%, and I would be fine with a $1,500 bill.  How can I make sure that my tax filer interprets my financial statements correctly?

[MayaD]

The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

On top of your Self employment tax you have to pay the income tax. Tax Bracket Calculator

A great tool to use to see how your tax is calculated is the Income Tax Calculator 2021