Life As Last-Minute Taxpayers Know It

Tax Tips

Inquiring minds want to know: What does the taxpayer who waits till April to file their taxes? Don’t know where you stand amongst the crowd of last-minute tax filers? Then just look here.

Infographic by Column Five Media

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Comments (6) Leave your comment

  1. Aleta, it’s unbelievable to me that your husband would be filing self-employment income on Schedule C of the form 1040 without paying self-employment tax on Schedule E of the form 1040, and that this would get by the IRS. I think you’ve left something out of the story.

  2. Dear sir,

    When my (self employed) friends tax guy died, I started doing his taxes with turbo tax. I thought I was doing a very proficient job (I separated, calculated everything) and bought Turbo Tax and followed all the questions.

    I did this for 4 or 5 years; thought everything was ok.

    Eventually his health became an issue; (had a defibulator put in, etc) and went to apply for disability (He had paid into for 50 years I think) and was denied due to the lack of credits (since I had been using TT. Doesn’t do any good to ask now, what did I do wrong.

    I was shocked to find out that he didn’t have enough credits and it was since I had been doing his taxes. I am devastated. Can we somehow go back and re-do the taxes by a professional? Can he somehow still get disability at all?!?

    I am devastated as I think I obviously did not know what I was doing and now it appears my fault that he is lacking the credits. He REALLY does need the disability now (he collects $724 in his social security) but I feel I should do something as I am probably to blame for this.

    I know you are probably busy, but any help is greatly appreciated.

    Many thanks and joy to you!

    Aleta

  3. I’ll tell you why I wait until the last minute to pay my taxes – because I owe the IRS money. Why should I pay them 1 minute early?

  4. Hi Josh,

    Aleta here again.

    I was just reading some comments by Tiffiny Smith on the main page. She was advising someone:

    First, since you are no longer an employee, you’ll need to pay your own income and Social Security taxes. Most taxpayers with self-employment income make quarterly estimated tax payments based on the amount of income the business earns.

    Self-employed taxpayers also need to pay self-employment Social Security and Medicare taxes by filing Schedule SE. The rate is 15.3% of your self-employment earnings. But you get to deduct half of those taxes on your 1040 as an adjustment to income.

    Just wondering, if your deductions were more/about the same as your earnings, how would you know that you had to pay in the self-employment ssi and medicar taxes? Please don’t get me wrong; I am just trying to understand how I could have used the tax software for so many years and not been aware of, or had seen the place to enter what was necessary to pay into ssi & medicare? Just trying to understand how I missed such an important thing (or perhaps I didn’t understand when I did see it)

    Do mean to yak a cha, just worried that I didn’t see this, or understand it, and that it totally escaped me. I love Turbo Tax & hope I get this person out of this mess that he is in because of my stupidity!

    Joy to you!

    Aleta

  5. Inquiring minds want to know: What does the taxpayer who waits till April to file their taxes?

    FYI (You didn’t finish this sentence!) You might want to read that incomplete sentence & have someone change it =)

    I LOVE Turbo Tax! But somehow (since my tax guy died 5 years ago & I started using Turbo Tax) I somehow did not put enough credits into Social Security so disability would be possible. After paying into Social Security for 52 years, needless to say, there was disappointment that I somehow missed this area (?!) How could I have missed that? I am disappointed and embarrassed that having recommended Turbo Tax to everyone – including the lady at WallMart the other night – that I >SOMEHOWFREE< services in the past and the FREE extentions, etc.How wonderful is that!!?? I have (and will) recommended TT as much as I can (but with a careful notation if the person is in business for themselves like us)

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