I have been real bad.I havent done my taxes in 2 years.
My first year I was self-employed and didnt make much, my second year I was W2 and 1099.
But my question is this? Will I break even because I have alot of write offs or will I owe alot for not filing?
2007-03-09 11:35:24 · 5 answers · asked by dirtdiva 2 in Business & Finance ➔ Taxes ➔ United States
Ok... sorry I only work part time in 04 I made $30k 1099
in 05 I made $16k W2 $12k 1099
2007-03-10 03:33:53 · update #1
Without knowing ALL of the facts and figures, there's NO way to tell. You could have little or no tax liability, or you could have a massive tax bill.
2007-03-09 23:04:06 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It does not matter how much you made. If you were self employed and did not file you hould be concerned. You are not doing yourself any favor by not filing your taxes. The biggest disadvantage to not filing are the penalties the IRS will assess. You will be charged interest and penalties from the day that your taxes were due and believe me these fees and interest can add up. The best thing to do is to talk to a tax attorney and then have the firm file your past due returns and come clean with the IRS. The penalties for coming clean will be alot less than never filing in the first place. Not filing can be constituted by the IRS as fraud. The bottom line? The IRS will eventually catch you even if you do not file.
2007-03-09 11:42:48 · answer #2 · answered by Gman 4 · 2⤊ 1⤋
Without knowing more details nobody can answer your question. You will owe because of the self-employment income. What you should know is that filing your taxes late is the worst mistake. The failure to file penalty is 5%/month up to 25% of the tax due.
2007-03-12 07:47:41 · answer #3 · answered by richard3770 1 · 0⤊ 0⤋
Steven F is right. If you earned more than $433 in self-employment income you will have to pay a flat 15.3% in Self-Employment Tax, plus whatever your regular income tax is. Are you sure your write-offs are all deductible against that year's income? If you bought capital assets, you may not be able to deduct the whole cost in the year of purchase.
Get yourself to a CPA and ask them to help you.
2007-03-09 14:05:52 · answer #4 · answered by skip 6 · 0⤊ 0⤋
You did not include a single number in your question. How can anyone even GUESS what your taxes should have been? The penalties for not filing are based on the amount owed. I'm sure you owe something, but have no clue how much.
2007-03-09 11:54:35 · answer #5 · answered by STEVEN F 7 · 3⤊ 1⤋