I end up owing so much tax. Trying to remain positive, yet none of my coworkers have to pay that much

[madeline023]

Living in Los Angeles, since 2022 I worked a bunch of jobs, 1099 apps and temp gigs agencies. No health insurance either. I made like 28k from the 1099 apps doing catering work and about 2-3k from W-2 agencies that didn't withhold any tax. 2023, I wasn't doing financially well so I didn't pay or filed taxes.

I did file a few days ago. Federal for 2022 ended up 6.3k. State tax 1.8k. I filed my 2023 taxes hoping for a return since I did very little 1099. I worked on-call banquet server for a bunch of hotels. Started making some decent money.

So yeah I did my 2023 just to realize again I will owe because they didn't keep as much tax out even though I did my W-4 correctly. I owe about 2.7k for Federal and 2.4k for State tax for 2023.

Not sure how I will pay all of that. I made 50k for 2022 and 60k for 2023 but that's barely any good in Los Angeles. I work 2 jobs so I guess I have to continue working 12-15 hours a day to contribute one of my paychecks to taxes. I was so hoping to quit the second job since I don't make much. With having to pay so much tax, I wish I entered school and not having to work non-stop random gigs.

My coworkers had refunds or had to pay very little back. I guess since they live with their families, they don't have to work as many jobs and complicate things.

 

[angelhart83]

@madeline023 If you’re a 1099 employee you’re supposed to be withholding your own taxes/paying them quarterly. There’s free banks that will do this for you (Found is the one I know of).

You can get on a payment plan with the IRS. You’ll need to give them a call/email.

Good luck.

 

[madeline023]

@angelhart83 Ah I didn't know. Yeah I decided not to do more 1099 and complicate it further. Plus the apps I used to use don't have much of work.

I'm planning to set up a plan but it makes me feel awful how long it will take for me to repay that. Should have gone to school indeed.

 

[ashish0849]

@madeline023 If you’re in LA, the good news is that you have access to some of the most affordable schools and extensive state services. So make your payments, work whatever hours you need to, but also check out what training options the Department of Labor has/recommends that might interest you and what financial aid may be available to you to take community college classes as a returning student. You don’t have to take them on while you’re working your way out of tax debt, but it might be helpful to have a path to higher income to look forward to when you’re done.

Did you use a reputable tax service to file? States typically have volunteers to help people with low income file taxes (VITA programs) and if you had 1099 income, you likely owe self-employment tax and penalties as well.

And PLEASE look into health insurance options because if you get sick and can’t work without treatment, your life will get much, much heavier.