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I recently did my taxes i feel somewhat uncomfortable with it HELP?

Ok so for past 2 years im not a rocket scientist when comes to taxes but i end up oweing IRS and this year was alot more.. Its not same tax rep but its from HR Block. What can i do make sure they arent screwing me because all during year with one tax form i withheld a certain number, my exemption was 0. They said with my 1099 i was struck with penalty "7" of whatever. Also my tax bracket went up 5% it just doesnt seem right what do i do.. I taxed HR Block 2 years straight i just felt like i got screwed both times!

5 Answers

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  • Anonymous
    7 years ago

    If you are a 1099 contractor, you have to pay your income taxes as well as self employment taxes (Social Security). From what you said I assume your made estimated tax payments but just a set amount each time rather a real estimate of what you were making. It is a difficult chore to estimate correctly if you are making different amounts all during the year. There is no way H & R would do anything to cost you more. They work to get you the best deal but apparently you need to make better estimates during the year.

  • Judy
    Lv 7
    7 years ago

    You had a 1099? For how much? And also a W-2? How much was that? Please add that info to your question, and someone can do a quick calculation. It's probably right, though.

    With a 1099, unless you make quarterly payments to the IRS, you'll probably owe even if you have tax withheld on a W-2 job also.

  • 7 years ago

    Nothing is withheld when you are a contractor so you need to make your own payments. You pay a 15.5% self employment tax and the state and federal taxes. If you owe 1k or more at tax time you are penalized for owing too much. You are supposed to make quarterly payments. Sounds like they were right because you do not know what you are doing.

  • Anonymous
    7 years ago

    Sounds like you really have no idea how the tax systems works, at all.

    I can't imagine your tax return would be that complicated to process. Mitt Romney needs an army of accountants to get to an optimal rate. You probably have a pretty simple return you can do yourself with a bit of effort. Then you'll understand what the situation is.

  • 7 years ago

    You do your taxes yourself, at home, so that you can know that they are being done right. You don't go to somewhere that you don't trust, and you certainly don't pay someone you don't trust to do something that you can do for free.

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