Loading ...Fear Cost Me Money
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NCN is writing his 33 ways to save money and reduce debt; this is inspired by his day 11 post.
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There isn’t a lot I know about taxes, I like to keep it as simple as possible because I am a simple person.
One thing I do know is that if you owe on taxes, don’t hide from it.
About 8 years ago I was throwing papers at night as a self-contractor and enjoying the fact that I got a nice paycheck. The only very steep downside was that taxes were not taken out. I tried to get some understanding on how it worked with the other carriers, but I just didn’t understand. Instead, I took my taxes to the (well-known) tax place and had them do it. I had itemized mileage and gas receipts, but those were discarded, as they felt I would owe more. Later though and a little too late, I found out that all those receipts could have been used.
In the end I owed a huge amount. It scared me to death because I didn’t have that money up front to give. Instead, I didn’t pay. I let it sit until I got letters threatening me that my full-time jobs paycheck could be garnished and other legally scary stuff.
I finally swallowed my fear and called up the big bad wolf to see what the IRS could work with me. To my utter amazement they were able to set me up on monthly payments that, 1) I could manage in my budget and 2) wouldn’t involve legal action against me.
If only I had confronted my fears and called a year before, I would have saved myself the interest and penalties and had my bill paid off earlier.
