Posted byon April 13, 2011
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Last year was the first time that I made a significant amount of money from writing, freelancing, and my blog Frugal Confessions. What an exciting milestone in my life!
Even though I wholeheartedly have planned out the next 40 years of my life financially speaking, for some reason I never opened up a side account to stash away the taxes I would need to pay at the end of the year. I also did not pay my quarterly tax estimates.
Fortunately for me, we had enough tax deductions (home office, small business costs and deductions, charitable contributions, energy saving tax credit, student loan interest, mortgage interest and property tax deduction) to actually get a tax refund.
Because of the anxiety I felt leading up to filing my taxes, I have learned my lesson and have now opened up a separate account to stash away a percentage of my side income for tax payments. But the experience left me wondering: what if I had owed several thousand dollars and could not afford to pay it all at once?
In an effort to help struggling taxpayers, the IRS will be revamping its tax lien rules. The changes being made are the following:
For more information, check out the IRS press release.