Help with a complicated Tax issue from 2017/2018

[Overnight]

While this will not provide immediate relief, here are the serious issues that need addressing ASAP..

This is assuming you are single, living alone...


…"
fixed rent $ 1,850.00

fixed car ins $ 180.00
fixed car payment $ 870.00

fixed internet/cable $ 100.00
variable cell $ 115.00

variable groceries $ 500.00
variable haircuts $ 40.00
variable gym $ 40.00
variable netflix $ 14.00
variable amazon prime $ 10.00

variable clothing $ 88.00

fixed furniture loan $ 65.00
…"

The most immediate change you can make is the food budget. $500 per month on groceries?

Ummm, based on what you've indicated is your situation, you're gonna' have to go into bachelor/college-student-in-a-dorm-room mode. That means cheep meals every day. Kraft Mac n Cheese it every day. Instant rice, etc. Sorry.

Drop Amazon Prime, Netflix, the gym.

You get $40 haircuts every month? No need for that.

Unless you need cellular data for your work, get rid of it. There are non-data plans out there for much less. Heck, even AT&T now has a minimal plan with sub 100MB data for $60 per month.

Furniture loan? Get rid of it and find some stuff at Goodwill.

Clothing, $88 per month? I can only assume you mean dry-cleaning, and even that does not = $88 per month.

Internet/cable? Assuming by cable you also get TV with it, drop the TV. Internet-only service should be cheeper, and you can find whatever you want to watch from TV on the Internet anyway if you know where to look.

The looming elephants in the room can't be resolved as quickly, I know, but they are the car payment/mileage and the rent.

fixed car ins $ 180.00
fixed car payment $ 870.00
avg vehicle mpg 16

Your payment is way too high, and that you have a payment means you have to pay collision damage on the insurance. The mileage is a dead giveaway. A new large pickup truck or SUV. Get rid of it and buy a cheapo clunker that is good on gas. A used Japanese compact will last forever and sips petrol fumes, relatively speaking.

fixed rent $ 1,850.00

And you should try to find a smaller place to live, or find some roommates to share the expenses.

 

[tiddlywinks]

While this will not provide immediate relief, here are the serious issues that need addressing ASAP..

@Overnight

This guy won't do any of that

He is a snowflake, that thinks he DESERVES tax forgiveness because he tried trading, and failed. And now, days before a deadline, for his first post he tells his story of woe to the ever well-connected, enlightened, the expert in all things money population of the anonymous forum affectionately known as ET.

 

[newwurldmn]

some of ya'll are seriously autistic or something. How many times to I have to post the minimum they will accept is 3600?
135k a year is a take home of 101k.
101k take home is about 8400 a month
after my bills and expenses, I realistically have at most about 2400 left over.

3600 is still almost half of my take home pay. of a decent paying job where im already considered a high earning individual in the US.

If anythign were to happen, lose my job, get sick, car accident, im not in a position to make payments to the IRS.

The amount owed is more than most peoples homes are worth and is accruing interest faster than im gonna b able to pay this off.

whats hard to understand that? I live in Austin, one of the higher cost of living cities in the US.

some of yall should take a long look in the mirror cause your kind of assholes. I know I screwed up and I'm looking for help. I only hope that nothing like this happens to you cause karma is a bitch

You may view your actions as a business but the irs does not. You took a shot to make millions and it didn’t work out.

Cut your expenses. Lots of people survive in Austin on 70k.

 

[baddaytrader]

While this will not provide immediate relief, here are the serious issues that need addressing ASAP..

This is assuming you are single, living alone...


…"
fixed rent $ 1,850.00

fixed car ins $ 180.00
fixed car payment $ 870.00

fixed internet/cable $ 100.00
variable cell $ 115.00

variable groceries $ 500.00
variable haircuts $ 40.00
variable gym $ 40.00
variable netflix $ 14.00
variable amazon prime $ 10.00

variable clothing $ 88.00

fixed furniture loan $ 65.00
…"

The most immediate change you can make is the food budget. $500 per month on groceries?

Ummm, based on what you've indicated is your situation, you're gonna' have to go into bachelor/college-student-in-a-dorm-room mode. That means cheep meals every day. Kraft Mac n Cheese it every day. Instant rice, etc. Sorry.

Drop Amazon Prime, Netflix, the gym.

You get $40 haircuts every month? No need for that.

Unless you need cellular data for your work, get rid of it. There are non-data plans out there for much less. Heck, even AT&T now has a minimal plan with sub 100MB data for $60 per month.

Furniture loan? Get rid of it and find some stuff at Goodwill.

Clothing, $88 per month? I can only assume you mean dry-cleaning, and even that does not = $88 per month.

Internet/cable? Assuming by cable you also get TV with it, drop the TV. Internet-only service should be cheeper, and you can find whatever you want to watch from TV on the Internet anyway if you know where to look.

The looming elephants in the room can't be resolved as quickly, I know, but they are the car payment/mileage and the rent.

fixed car ins $ 180.00
fixed car payment $ 870.00
avg vehicle mpg 16

Your payment is way too high, and that you have a payment means you have to pay collision damage on the insurance. The mileage is a dead giveaway. A new large pickup truck or SUV. Get rid of it and buy a cheapo clunker that is good on gas. A used Japanese compact will last forever and sips petrol fumes, relatively speaking.

fixed rent $ 1,850.00

And you should try to find a smaller place to live, or find some roommates to share the expenses.

Due to my situation, this is the cheapest place I can find to live. I had a shitty ex girlfrined a few years ago who made some bogus statements that got me in some serious elgal trouble. almost no one will rent to me over it. My rent was 2600 a month, it took me 4 months to find the place I am in now after applying to rent at least 15-20 different properties and I had to sign a 2 year agreement. rent cant budge.

netflix/gym/haircuts... that stuff is unrealistic to get rid of. Who in their right mind that earns my level of income should be expected they cant take care of their health or have not have a 14$ service for entertainment. its unreasonable to not have these services.

My vehicle payment is a bit high, but its underwater. Remember I lost over 1.5 million bucks. 870 a month for a car payment is not high.

500 on groceries is after making cut backs. Even the IRS allows for 780 a month on groceries. groceries includes all food/carry out/ cleaning supplies/ etc

I work remote most of the time. I cant get rid of or reduce the internet/cable cost. the internet/cable bundle is cheaper than regular internet after you take into consideration the bandwidth I need.

It is highly unreasonable to sell my fucking furniture which is modest in the first place to go buy something else. I don't know if you have ever purchased furniture before, but you will not get anywhere near what it cost to purchase new.

the estimates I gave on my expenses are all reasonable and already cut down significantly. Fuck, last three years I was making 20-40k a month on average. Now I'm stuck at 11,250.

 

[abc1234]

I have one simple question.

Why didn't you pay your approximate 2017 balance (and 2018 estimated payment) on the April 15 deadline?

I know you filed an extension but you should know that it does not mean the payment deadline is pushed back too. You were essentially trading with a loan from the IRS from April 15th until 0.

If you did your homework on your taxes you would not be in this mess and would have likely received a $100K+ refund from your 2018 estimated payments. You had a business, but running it poorly f'ed you twice.

 

[baddaytrader]

You may view your actions as a business but the irs does not. You took a shot to make millions and it didn’t work out.

Cut your expenses. Lots of people survive in Austin on 70k.

your making the assumption that my situation is similar or the same as these other people. It is not. Im being forced to pay back money my savings earned, but lost my entire savings before I could pay back. it kind of logically doesnt make sense. I didn't buy a house, didnt go on some extravagant trip. didnt get into some super risky investment. The assets i was in had crazy volatility that was very irregular. if i was a bank Id be bailed out. If I was a business id write it off. If I were living in PR I wouldnt have the tax bill in the first place.

Im not asking ya'll to critique how I got here. I'm not asking for lectures on I need to sell my furniture and cancel a netflix membership. I am asking for reference on someone who can help with the tax collection to get a more reasonable payment / bill.

 

[baddaytrader]

I have one simple question.

Why didn't you pay your approximate 2017 balance (and 2018 estimated payment) on the April 15 deadline?

I know you filed an extension but you should know that it does not mean the payment deadline is pushed back too. You were essentially trading with a loan from the IRS from April 15th until 0.

If you did your homework on your taxes you would not be in this mess and would have likely received a $100K+ refund from your 2018 estimated payments. You had a business, but running it poorly f'ed you twice.

Yes, you are correct and I even stated I know I fucked up and where I fucked up. that doesnt matter now and giving more thought to it wont fix anything. I need someone who can help with the IRS/tax problem.

 

[baddaytrader]

I have one simple question.

Why didn't you pay your approximate 2017 balance (and 2018 estimated payment) on the April 15 deadline?

I know you filed an extension but you should know that it does not mean the payment deadline is pushed back too. You were essentially trading with a loan from the IRS from April 15th until 0.

If you did your homework on your taxes you would not be in this mess and would have likely received a $100K+ refund from your 2018 estimated payments. You had a business, but running it poorly f'ed you twice.

the stupid thing is the way I see it, if you want to call it a business as I treated it then the IRS should treat it as such as well, which would likely fix my problem. If the IRS doesn't want to call it a business then they should look at it in a realistic way, I my brokerage account earned some money which was never withdrawn then the whole account was wiped out losing everything, there should be a way to have that tax debt forgiven and not go into servitude for multiple years with the hope my income will change. I have 0 incentive to work my ass off to be honest and its in the best interest of everyone to write it down.

call me delusional, I dont know, but I dont see this ever getting better without a miracle of an income stream which I have no disposable income to develop or the IRS writing the tax debt down which I dont know how to approach which is why I posted this thread.

 

[baddaytrader]

@Overnight

This guy won't do any of that

He is a snowflake, that thinks he DESERVES tax forgiveness because he tried trading, and failed. And now, days before a deadline, for his first post he tells his story of woe to the ever well-connected, enlightened, the expert in all things money population of the anonymous forum affectionately known as ET.

tried trading. if you want to call ti trading then that has certain tax implications, which would fix my problem. The IRS isn't letting me call it trading, they are calling it an investment. They want me to both pay the income from investment and restrict my loss to 3k when the investment went -100%.

Yall are focusing on how i got here which is irrelevant. I'm trying to be realistic and asking for help with the tax issue. Not asking for help on how to rebudget and sell my furniture. To ask someone in my position to get a roommate is unreasonable. to ask me to move is unrealistic. to ask me to budget down beyond the minimum i posted is unrealistic, not to mention that budget still isn't even enough for life events or the credit on accounts I still need to pay back for things like CPAs and Lawyers and expenses to my consulting, etc. To be realistic youd need to pay this back for around 7 years. Thats almost twice as long with less disposable income as the regular college student. if you dont have any sort of help as far as forms I can file, services i can hire, professionals to engage, then your just trolling.

 

[bjw]

Not asking for help on how to rebudget and sell my furniture.

well, you were kind of asking for it when you supplied us with your budget down to your netflix sub. you don't need to respond to everyone here you know.
if you really don't want to discuss anything else than a CPA reference, try ignoring everyone talking about other issues.