DSP The Immortal · @TheyCallMeDSP
8th Apr 2018 from TwitLonger
Got my 2017 taxes today and finally have full info on my Federal tax situation. Since many of you are concerned and have contributed to help, I feel the need to share the results. If you absolutely do not care, please skip this post.
First, the long explanation:
It’s pretty much exactly as I’d expected. I owe a bunch of money (over $4k) for my 2017 Federal taxes by April 17, because I made more money last year than I usually would have. This was greatly in part due to you guys, the viewers and fans, rallying and being super supportive at the end of the year, in order to get me over the State Business taxes hurdle I was facing in January. You absolutely did, but because I made more money than usual, I now owe the IRS about $4k more than I had paid.
In addition, my new tax attorney is charging me around $1k to file my taxes. This is as expected, as my previous attorney charged me about the same.
THE GOOD NEWS: I have raised enough money to pay both these 2017 back taxes and my tax attorney for his services. So I’m in the clear there.
THE BAD NEWS: In addition to everything above, I also now am expected to pay my “first estimated tax payment” for 2018 by April 17 in the amount of ANOTHER $4k. This, sadly, I don’t have. At all. All of my available funds are going to the 2017 taxes and tax attorney filing fees, which is exactly as I’d feared. I do not realistically see myself raising $4k in the next 9 days to pay this unless a miracle happens. So sadly, for now it looks like I’m stuck not paying - meaning I’ll begin to accrue late fees and penalties on this unpaid tax. I also have further payments due in June, September and December, which I hope to be able to afford with the money I raise between YouTube/Twitch/Patreon/Teespring and tips. So if things go well this year, I may be in the clear. But it absolutely SUCKS that I’m going to start off behind and owe these fees and penalties.
The worst part: so far, those State Business taxes I had to pay in January, plus the attorney fees I’ve already paid to resolve that situation, have cost me around $5k. If my OLD tax attorney had done his job, I would actually be in a completely fine place right now, and might have even had a bit of extra money. Instead, I find myself on the edge of a slippery slope of unpaid federal taxes that could cause me to lose my home in the coming year. OH YEAH: I also am supposed to be hearing from the State of Washington soon when they complete their assessment of how many unpaid Business taxes I owe, and that’s just another thing on top of everything. I’m really hoping they’ll put me on an extended instalment payback plan, but that is still uncertain.
TL;DR, here is the summary version:
Thanks to the help of the viewers, I’m able to pay my 2017 Federal taxes and the tax attorney in full. But I still owe $4k for my first Federal tax payment of 2018, and I have nothing to pay that with. So I’m starting the year way behind, and if things on Twitch/Youtube don’t improve over the course of the year, I’ll find myself in a terrible position where I can be forced to sell my house within a year. If a miracle happened and I somehow raised the $4k in 9 days, I would be in an incredibly better position and feel way more positive about things than I do now, since I wouldn’t be $4k behind on my taxes from the get-go and could just focus on the future. But I’m not really expecting said miracle to happen.
Thanks all for your time and I hope this clears things up.