Has anyone ever owed a lot in taxes?

tanzer13

So we sold some stock this year and we know we are going to have to pay in quite a bit on our taxes.  We have never owed before and have no idea how that will work if we can not pay it all up front, which we would definitely not be able to.  How long do we have to pay it?  Is there any way we can pay a little a month or something?  Any insight on this would be awesome!  Thanks!

Isabella T.

Please, just a suggestion, never accept tax advice from a parenting message board.

Contact the IRS.

 

DevonPow

Definitely call the IRS to find out and maybe they can/will set up a payment plan.

We owe a lot every year (due to stock sales) but we pay estimated taxes quarterly in advance of filing.

Sulla

Isabella's right. But that said, I swear I'm a real person and the answer is yes, you can do a payment plan and pay it off slowly. I've done it. Consult a tax advisor and/or the IRS to get the details.

A&Amommy

We owe $4100 this year, YUCK!  I don't know about a payment plan. . .we just have it e-filed to be automaticaaly pulled from our checking on 4/15.  The sale of stock should not create THAT much of a tax liability unless it was from a qualified (retirement) plan.  Taxes on the gains are probably not that significant, it is when you are pulling from a retirement plan and having to pay income taxes, and the penalty for early distribution.  Was this the case?  In many cases I think people dig themselves into a deeper whole, you may have to take another distribution, or take a loan out to pay the taxes. . .ugggg.  I don't know that the government is all that lenient with getting their money.

Rebekah1021

I'm pretty sure that the taxes are technically due on april 15th, but you can file an extension. I would talk to an accountant or the IRS to see how you can do this w/o penalities.

We sold stock last year, but we also had some investments that took a crash so it balanced it out for us.

tanzer13

Wow, really??  That was harsh.......  I am not asking for advice anyways, just if anyone else has been through this, since we never have, so that I know what we are looking 'forward' to.  And FWIW I do have a tax person going over everything for us right now, the same lady that does our taxes for us every year, I was just trying to be prepared for what she was going to tell me.  Wow, sorry I asked.

DesignerMama

We owed a shitton in taxes last year and are still paying.?There is a fee, and you'll continue to pay penalties and interest, but?was super easy to set up a payment plan!

It was completely automated with the state -- I just had to decide on a monthly amount. They automatically accepted it and set us up on auto-withdrawal.

For federal, I had to talk to someone and we get a "bill" every month, but it only took like 10 minutes total to set up both.??

LanaM

Rebekah1021:

I'm pretty sure that the taxes are technically due on april 15th, but you can file an extension. I would talk to an accountant or the IRS to see how you can do this w/o penalities.

We sold stock last year, but we also had some investments that took a crash so it balanced it out for us.

When filing an extension, you have to make sure there is no tax liability and everything is paid by 4/15, otherwise they will kill you with penalties. The extention is for when you may not have all the docs, not to delay payment of the tax liability.

We'll owe a lot this year too... I know it, just don't know how much for sure yet. I am waiting until 4/15 to do my taxes   I hate doing them.

I don't know if there is a payment plan without any interest/penalties, please call the IRS to find out for sure.