Overdue taxes, freaking out
October 3, 2011 9:56 AM Subscribe
Help! I still haven't filed my taxes for 2010. Is there anything I can do?
I am a 23-year-old grad student that has had a rough year, and I never got around to filing my taxes for 2010. I know I'm going to have to do it at some point, but whenever I think about it I immediately start to stress out and my brain pushes it all out and shuts down. Even any mention of taxes in the news or on a TV show will start my heart racing. It's still on my phone's to-do list, all caps, telling me I'm 168 days overdue (AHH)
I know I should just look it up, but it seems like such a daunting task. I was wondering if you guys could help calm me down, tell me I won't go to prison, and sort of guide me through the process of filing taxes extremely, extremely late. I did my own taxes for the first time last year (for 2009) and it was pretty painless, but I was an undergrad then and not receiving much income. In 2010 as a graduate student I received a stipend for a teaching assistant position as well as a research assistant salary. I'm not even exactly sure how taxes work, if I'd get a refund or if I'd have to pay more (pretty sure that stipend was untaxed?)
Any help would be greatly appreciated. It took all of my being to even admit to myself that I still had to do this and write up this question.
I am a 23-year-old grad student that has had a rough year, and I never got around to filing my taxes for 2010. I know I'm going to have to do it at some point, but whenever I think about it I immediately start to stress out and my brain pushes it all out and shuts down. Even any mention of taxes in the news or on a TV show will start my heart racing. It's still on my phone's to-do list, all caps, telling me I'm 168 days overdue (AHH)
I know I should just look it up, but it seems like such a daunting task. I was wondering if you guys could help calm me down, tell me I won't go to prison, and sort of guide me through the process of filing taxes extremely, extremely late. I did my own taxes for the first time last year (for 2009) and it was pretty painless, but I was an undergrad then and not receiving much income. In 2010 as a graduate student I received a stipend for a teaching assistant position as well as a research assistant salary. I'm not even exactly sure how taxes work, if I'd get a refund or if I'd have to pay more (pretty sure that stipend was untaxed?)
Any help would be greatly appreciated. It took all of my being to even admit to myself that I still had to do this and write up this question.
If you're really stressing out that much, I would strongly, strongly recommend that you go to an H&R Block or similar retail accounting place and ask them to do your taxes; they'll walk you through the whole thing. You will pay a fine; your mistake will cost you. You will not go to jail. The IRS is quite used to your situation, and will not accuse you of anything and other than short-term financial pain, there will be no lasting repercussions, as long as you get it dealt with.
posted by Tomorrowful at 9:59 AM on October 3, 2011 [1 favorite]
posted by Tomorrowful at 9:59 AM on October 3, 2011 [1 favorite]
I'm guessing you're in the US and if so seriously, you'll only pay a fine if you owe money, and it won't even be a big fine. Just do it or, as Tomorrowful suggests, get someone else to do it. The worst thing that could POSSIBLY happen is you'll owe some money.
People do this all the time! I have done it myself! I don't recommend it! Just get it over with; you will feel SO MUCH BETTER.
posted by mskyle at 10:05 AM on October 3, 2011
People do this all the time! I have done it myself! I don't recommend it! Just get it over with; you will feel SO MUCH BETTER.
posted by mskyle at 10:05 AM on October 3, 2011
As a young grad student, your taxes are almost certainly a piece of cake to do. Don't stress it - the IRS will be happy to take your money, even if it's a few months late.
Do you have several hundred bucks? Collect your paystubs and medical and school receipts, go to a CPA, hand everything to them. Should cost $500 or less - probably much less.
Do you not have several hundred bucks? Buy Turbotax 2010 for cheap (you can buy and download it from Amazon) and every night, give yourself a goal to complete five steps. You'll make steady progress and probably be done in a week.
posted by zippy at 10:07 AM on October 3, 2011
Do you have several hundred bucks? Collect your paystubs and medical and school receipts, go to a CPA, hand everything to them. Should cost $500 or less - probably much less.
Do you not have several hundred bucks? Buy Turbotax 2010 for cheap (you can buy and download it from Amazon) and every night, give yourself a goal to complete five steps. You'll make steady progress and probably be done in a week.
posted by zippy at 10:07 AM on October 3, 2011
Just file your taxes using TaxAct or some other service that makes it brain-dead easy. The IRS will at some point review your return and send you a letter of deficiency if you owe fines. You write them a check for the fines (they will be minimal) and you don't have to think about it anymore.
posted by michaelh at 10:13 AM on October 3, 2011
posted by michaelh at 10:13 AM on October 3, 2011
Get tax software, I use H&R Block's TaxCut. It makes doing taxes extremely easy. Get the software, collect your documents (W2's, etc.), and you can have this finished today. When I was in grad school, I always got a refund, fwiw.
posted by Tooty McTootsalot at 10:13 AM on October 3, 2011
posted by Tooty McTootsalot at 10:13 AM on October 3, 2011
Assuming you're in the USA:
Filing late isn't a big deal. If you owe money, you'll pay a penalty. If you don't owe money, nothing happens other than that you are letting the government hold onto money that is rightfully yours.
In order to get past the procrastination and panic, make a to-do list featuring:
1) get turbotax
2) pull together your W-2s
3) do a rough pass through the entire process of filling out the fields in TurboTax (shouldn't take more than a couple hours). This will give you some idea of what side of the equation (owe/refund) you're on.
Once you have a rough idea of whether you owe tax or are due a refund, you can decide how much it's worth your time to get more money out of the government (deductions, expenses, etc). Or you could just file it and be done with it.
But you should start this ASAP, because if you owe money, your penalty will likely increase if you leave it unpaid.
posted by georgikeith at 10:16 AM on October 3, 2011
Filing late isn't a big deal. If you owe money, you'll pay a penalty. If you don't owe money, nothing happens other than that you are letting the government hold onto money that is rightfully yours.
In order to get past the procrastination and panic, make a to-do list featuring:
1) get turbotax
2) pull together your W-2s
3) do a rough pass through the entire process of filling out the fields in TurboTax (shouldn't take more than a couple hours). This will give you some idea of what side of the equation (owe/refund) you're on.
Once you have a rough idea of whether you owe tax or are due a refund, you can decide how much it's worth your time to get more money out of the government (deductions, expenses, etc). Or you could just file it and be done with it.
But you should start this ASAP, because if you owe money, your penalty will likely increase if you leave it unpaid.
posted by georgikeith at 10:16 AM on October 3, 2011
Totally not worth the amount of stress this is causing you. Decide that tomorrow evening you're going to get this taken care of. Get everything together, and call a couple CPAs. Drop your stuff off and let them deal with it. Chances are it will be super cheap since your return sounds uncomplicated. As far as I'm concerned, taxes are one of the things I am more than happy to pay someone else to stress over, especially something as affordable as an accountant.
posted by Nickel Pickle at 10:17 AM on October 3, 2011
posted by Nickel Pickle at 10:17 AM on October 3, 2011
(I'm also assuming that this is a question about taxes in the US)
tell me I won't go to prison
You're not going to go to prison. Worst case is you owe more than you can pay right now and you end up having to set up a payment plan. But basically you either owe tax money or you don't, and if you do owe all the IRS is going to want you to do is pay.
In 2010 as a graduate student I received a stipend for a teaching assistant position as well as a research assistant salary. I'm not even exactly sure how taxes work, if I'd get a refund or if I'd have to pay more
You should do your taxes for last year the same way you normally would (i.e. with turbo tax or whatever). If you don't file at all for 2010, eventually the IRS will file a substitute return for you. Basically that means they will use whatever information they have (like W2 forms and whatnot) to figure out how much you would have owed, plus tacking on any penalties and interest for not paying when it was due. You can still at any time file your own return, which you should do since you will have a better idea of what you can deduct and whatnot. So basically just file your return and pay what you owe (if anything). Here is the IRS FAQ page which says basically the same thing.
posted by burnmp3s at 10:17 AM on October 3, 2011
tell me I won't go to prison
You're not going to go to prison. Worst case is you owe more than you can pay right now and you end up having to set up a payment plan. But basically you either owe tax money or you don't, and if you do owe all the IRS is going to want you to do is pay.
In 2010 as a graduate student I received a stipend for a teaching assistant position as well as a research assistant salary. I'm not even exactly sure how taxes work, if I'd get a refund or if I'd have to pay more
You should do your taxes for last year the same way you normally would (i.e. with turbo tax or whatever). If you don't file at all for 2010, eventually the IRS will file a substitute return for you. Basically that means they will use whatever information they have (like W2 forms and whatnot) to figure out how much you would have owed, plus tacking on any penalties and interest for not paying when it was due. You can still at any time file your own return, which you should do since you will have a better idea of what you can deduct and whatnot. So basically just file your return and pay what you owe (if anything). Here is the IRS FAQ page which says basically the same thing.
posted by burnmp3s at 10:17 AM on October 3, 2011
I have nothing else to add that hasn't been stated.
I was in a similar state of panic as you at a similar point in my life. It was shockingly easy to address this by just doing my past taxes. Unless you are some sort of tax scofflaw owing the IRS millions of dollars they are actually usually just pleased as punch to take your money whenever you pay it and if you're in the weeds financially they'll happily put you on a payment plan.
This is easy, and pretty painless. Stop the worrying and focus on just getting the paperwork in as soon as possible. If you've got the cash to pay someone to do it then go that route since it will save you the headache. If not file via one of the software packages listed above.
posted by bitdamaged at 10:22 AM on October 3, 2011
I was in a similar state of panic as you at a similar point in my life. It was shockingly easy to address this by just doing my past taxes. Unless you are some sort of tax scofflaw owing the IRS millions of dollars they are actually usually just pleased as punch to take your money whenever you pay it and if you're in the weeds financially they'll happily put you on a payment plan.
This is easy, and pretty painless. Stop the worrying and focus on just getting the paperwork in as soon as possible. If you've got the cash to pay someone to do it then go that route since it will save you the headache. If not file via one of the software packages listed above.
posted by bitdamaged at 10:22 AM on October 3, 2011
+1 for buy 2010 TurboTax and DIY. I did this in the past (multiple years late for 2 tax years) and I paid a few hundred in fines and interest, and I owed, which was a pain. Based on your employment situation, you may even have money due back.
The IRS won't come throw you in jail. For the most part what I read when this situation occurs, who they go after are people with hundreds of thousands or millions in income, people hiding assets, people taking a public stand against taxes, and celebrities. Grad students without a pot to pass in are rather low on their radar.
Now, it's soon enough that you probably have all the paperwork you'll need, but be prepared to track that stuff down. If you've lost receiepts how I was advised was to do your best estimates as to what the numbers were. Act in good faith and you'll be fine.
So take a deep breath, have a glass of whatever drink calms you down (I like hot cocoa or a martini with a blue cheese olive), buy TurboTax 2010, and get it done in a timely manner.
And if you're still stressed, you can actually call the IRS and ask anonymous questions about the practicalities of this. If you're extra paranoid call from a public phone. They're happy to answer your questions and in my experience 9 out of 10 IRS personnel are non-judgmental: it's a practical matter and can be handled professionally and impersonally. If you get a jerk hang up and try again. I've talked to a lot of IRS on the phone in the last 3 years and I was way more stressed than you are now.
posted by artlung at 10:31 AM on October 3, 2011
The IRS won't come throw you in jail. For the most part what I read when this situation occurs, who they go after are people with hundreds of thousands or millions in income, people hiding assets, people taking a public stand against taxes, and celebrities. Grad students without a pot to pass in are rather low on their radar.
Now, it's soon enough that you probably have all the paperwork you'll need, but be prepared to track that stuff down. If you've lost receiepts how I was advised was to do your best estimates as to what the numbers were. Act in good faith and you'll be fine.
So take a deep breath, have a glass of whatever drink calms you down (I like hot cocoa or a martini with a blue cheese olive), buy TurboTax 2010, and get it done in a timely manner.
And if you're still stressed, you can actually call the IRS and ask anonymous questions about the practicalities of this. If you're extra paranoid call from a public phone. They're happy to answer your questions and in my experience 9 out of 10 IRS personnel are non-judgmental: it's a practical matter and can be handled professionally and impersonally. If you get a jerk hang up and try again. I've talked to a lot of IRS on the phone in the last 3 years and I was way more stressed than you are now.
posted by artlung at 10:31 AM on October 3, 2011
Oh honey. I just did my 2005 taxes.
posted by RJ Reynolds at 11:07 AM on October 3, 2011 [11 favorites]
posted by RJ Reynolds at 11:07 AM on October 3, 2011 [11 favorites]
Assuming you're in the US . . . your stress about this is probably the biggest hurdle you're facing. Worst case scenario is probably:
- nothing was withheld from your checks (it happens with stipends sometimes), so you have to pay those taxes
- you have to pay interest and/or penalties.
- if you can't afford to pay now, you set up a payment plan (with rates that are probably better than what you're paying on your credit cards).
That's it! No prison, no criminal implications (unless you are SERIOUSLY leaving something out), no need to freak out.
Like everyone has said: deep breath + get it filed. Go to a tax-prep place / CPA / accountant. If you don't have your paystubs, request copies - your department can refer you to the University office who can help you.
Here's an article from Slate about the writer's (pleasant!) experience owing money to the IRS: Why I Love the Taxman.
posted by Signed Sealed Delivered at 11:10 AM on October 3, 2011
- nothing was withheld from your checks (it happens with stipends sometimes), so you have to pay those taxes
- you have to pay interest and/or penalties.
- if you can't afford to pay now, you set up a payment plan (with rates that are probably better than what you're paying on your credit cards).
That's it! No prison, no criminal implications (unless you are SERIOUSLY leaving something out), no need to freak out.
Like everyone has said: deep breath + get it filed. Go to a tax-prep place / CPA / accountant. If you don't have your paystubs, request copies - your department can refer you to the University office who can help you.
Here's an article from Slate about the writer's (pleasant!) experience owing money to the IRS: Why I Love the Taxman.
posted by Signed Sealed Delivered at 11:10 AM on October 3, 2011
Look on irs.gov for the tax form for that year. Following the instructions will be a piece of cake compared to many other things you've done in grad school, they tell you what needs to go on each line of the form. If you don't want to figure out the late fees yourself you can send it in without that portion and the IRS will figure it out for you and send you a bill.
You could even get money back if you had taxes withheld. Maybe the IRS has your money that they haven't sent yet, and they are just waiting for you to file the forms.
Take that old to do item off of your list, and make a new one for today or tomorrow.
posted by yohko at 12:25 PM on October 3, 2011
You could even get money back if you had taxes withheld. Maybe the IRS has your money that they haven't sent yet, and they are just waiting for you to file the forms.
Take that old to do item off of your list, and make a new one for today or tomorrow.
posted by yohko at 12:25 PM on October 3, 2011
It's better if you've filed an extension, but, even if not, this is not a crisis. If you owe money, you will be charged more in interest and penalty the longer you wait. If you get money back, it's not a very big deal. Ask your friends if anybody is a tax preparer. Or, even better, buy a copy of Tax Cut or Turbo Tax for 2010. They go on sale after tax season subsides. It's better to know if have to pay the IRS, and to file, even if you can't pay right now.
Filing taxes late is a bad habit to get into, so don't be like me - get 'em done.
posted by theora55 at 3:23 PM on October 3, 2011
Filing taxes late is a bad habit to get into, so don't be like me - get 'em done.
posted by theora55 at 3:23 PM on October 3, 2011
Airing my own dirty laundry here — if the only problem is that you haven't filed, you have no problem. Due to a number of contributing factors, the husband and I were in a bad state of head-in-the-sand la la la I can't hear you! over the taxes for a number of years. (We'd paid, via standard payroll deduction, we just hadn't filed.)
I just asked him and we can't agree on how long we went before we finally got our act together, took the paperwork to our tax guy, and got up to date (he says "ten years!" but I don't think it was that long — six or seven, maybe). When we finally did, not only did we not go to prison for our tardiness or anything like that, we actually got a refund of several thousand dollars for having had too much withheld over the years.
As theora55 says, filing taxes late is a bad habit you don't want to get into. Get yourself current now and you'll be fine going forward.
posted by Lexica at 6:12 PM on October 3, 2011 [2 favorites]
I just asked him and we can't agree on how long we went before we finally got our act together, took the paperwork to our tax guy, and got up to date (he says "ten years!" but I don't think it was that long — six or seven, maybe). When we finally did, not only did we not go to prison for our tardiness or anything like that, we actually got a refund of several thousand dollars for having had too much withheld over the years.
As theora55 says, filing taxes late is a bad habit you don't want to get into. Get yourself current now and you'll be fine going forward.
posted by Lexica at 6:12 PM on October 3, 2011 [2 favorites]
This thread is closed to new comments.
posted by Jairus at 9:58 AM on October 3, 2011