Ours did not file ours either. He was a full blown accountant.

My first CPA is serving a 20 year jail sentence for embezzlement. My current CPA firm is awesome.

You are likely over the median income for Texas so you would be in a chapter 13 case with payments of 5 years, the nice thing is your plan payment would likely be significantly lower than all your debt servicing.

My partner and I ended up with a rather large tax bill (for us anyway) of approximately $18k.

The way I was understanding the IRS website was that even if you file for an extension, that doesn’t extend when your amount is due. You need to pay by the deadline to avoid late fees and penalties.

https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return

Yes tax preparers can be bad but they should still be capable of efiling for you. So the fact that he does not file for them yet “helps” them makes me think it’s a ghost preparer

Sometimes you get bad accountants. My husband hired one to do ours the first year we were married and we owed sooo much money. We took it to another accountant who said, "well yeah, they didn't do any of your deductions..." She charged us half of what the other guy had and we owed less than 1/10th of what the other person had told us. It was absolutely infuriating but a lesson learned.

I paid $300 to hire an accountant to do my taxes. It was not substantially more expensive than going with TurboTax. And saved me thousands.

It honestly sounds like your accountant is either shady, or incompetent. Hire a CPA to sort it out for you, and they should probably check into the last few years as well.

A good CPA will be able to do your taxes in 15 mins and is typically cheaper than a chain also.

Be aware an extension does not mean you get an extension on when you need to pay your taxes, you still need to make an estimate and pay by tax day. The extension is only for filing the return.

Would that really add up to 25k or even 20k though?

that is subsidized healthcare, the cost you see isn't the real cost. When someone does not qualify, they pay the real cost. Healthcare.gov is for poor people and the rest of us pay for it, you are now in the rest of us category.

BTW, get a real accountant that can do your taxes for you as others have said.

It's even less for them. When you consider the standard deduction they are paying ~50% of tax on their taxable income. Obviously something is wrong or information is missing.

Edit: mentioned husband in the comments

I just switched to this for this year from turbo tax and my god I can’t believe I’ve used TurboTax all these years..

Plug everything into TurboTax and see what comes up

I use this and the URL sounds like such a scam everyone I mention it to (who almost always are using TurboTax) raises an eyebrow at me.

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What if they got a 1099 for debt forgiveness?

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I just posted about this, but didn’t read your post. Your provided great detail! Good stuff

"The rates are about the same as most 6 month CDs" where if you don't mind sharing?

No we immigrated a little later in life and between putting out kids to school and owning a small home we did not learn about roth ira and 401k until later down the road. I am filing an extension to get things sorted though so hopefully it give us some time to get it together. thanks you again

It could be because ACA overpayment of subsidy. Would double check the reason. Also, not sure if penalty is involved, and state taxes.

Just move everything into Ally no penalty CD. You can have up to 40CDs at Ally so break them evenly into 40 so if you need money just break one and keep doing that.