M32, using anonymous account be shame. I’ll try and summarize, but I started a business (in U.S.) in the beginning of 2021 and have yet to file taxes of any kind. Taxes are up to date prior to that when I worked a W-2.
In 2021, which I’m most concerned about, my 50% of the profit was around 40k. I really had no idea how to address taxes going into this as a first time business owner and I didn’t save much. I was married until this year when I went through a divorce so I don’t think I can file as joint anymore. In addition to that, to get things off the ground, I missed some card payments which hurt my credit so I don’t think I have much of an option there as far as putting it all on a credit card. I do think based on my limited knowledge there will be lots of opportunities for write offs, given that I drove all over the place to meet clients, worked out of home office and used personal phone for work. I probably have around 10k in savings that I plan on putting towards this tax fiasco.
Admittedly, I’ve avoided addressing this out of fear for what I might find out but I can’t put it off any longer. So without making me feel like too much of a piece of shit, how do I start digging myself out of this hole? What do people do when they don’t have the money to pay the back taxes they owe? Are payment plans a thing? TIA
You find out the facts from a reputable source, that is not read it, a reputable source is a CPA or another type of text preparation person. Tax season will start in late January so from a timing point of view you need to do this today or wait until late April if you try to do it during the tax season the person will be so rushed that it will be difficult