My Dad Checks In As Tax Day Approaches

The following conversation took place on the phone. Mike was in Virginia, Logan was in NYC. Logan wrote it down verbatim as she got in the office, so it’s not exact, but it’s close.

Mike Sachon: Have you done your taxes?

Logan Sachon: What do you think?

Mike: That’s what I was scared of. I’d hoped you’d done them. You’re running out of time, girl.

Logan: I’m going to file an extension.

Mike: Right. But you know that you still have to pay on time right? The extension is just for filing.

Logan: Well, right. But the fees on paying late are way less than if you don’t file an extension.*

*Fee for not filing/including not filing an extension: 5% of balance owed each month up to 25%, so, if I owe $2,000, which is a nice, round, hopeful number, my penalty would be at minimum $100 and at most $500, plus the original $2,000 that I owe, PLUS the fee for not paying, PLUS interest. This is a lot of money.

Fee for not paying: .5% of balance owed each month until paid off in full. So, on a $2,000 tax bill, that would be $10 a month until I paid, which doesn’t seem terrible to me, but is obviously not ideal. 

Interest: In addition, the IRS also charges interest on unpaid taxes, currently 3% a year (not bad). On $2,000, that would be $60 a year, which comes out to 16 cents a day, which comes out to, I don’t care about this at all. 

Mike: Well, write a check for what you can.

Logan: Um, what makes you think I have any money to pay my taxes?

Mike: That’s just sad. That makes me sad.

Logan: It’s fine. IT’S FINE. It’s fine. It’ll work out. It’ll be fine.

Mike: Okay. You’re not going to listen to me anyway, but send what money you can. Look up all the fees, it’s not worth it not to pay.

Logan: Right. Let’s talk about you. Have you done your taxes?

Mike: Of course not. I always do them the night before.

 

Mike Sachon is Logan’s dad, among other things.

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10 Comments / Post A Comment

probs (#296)

I’ve only filed twice, but I’ve had pretty easy cases so I’ve never had any trouble filing on time. My parents are always years behind on their taxes and I hate paperwork, so I was always too scared to file taxes back when I was below the income cutoff for mandatory filing (hopefully that’s actually a thing), even though I would’ve gotten all of my money back in the refund since I was earning so little.

When I finally got a big boy job and moved to DC and had to file, I was surprised at how easy it was. 3 w-2s, filing in two states, my fourmoney dollars or bankto interest or whatever, basic deduction, easy peasy. This year I only had to file in one state and had one job, so it was even easier.

Wrangling a bunch of 1099s and complicated deductions seems like a different beast altogether, and plus taxes are just scary and weird. I get why people put them off.

@probs I have also had really easy cases, but I’m buying a house this year so I think next year will be super complicated. But I’ll probably (hopefully) still do them fairly early in the year just to get it done.

probs (#296)

@backstagebethy that sounds wise. I’m normally a procrastinator, but taxes freak me out enough to get them done early. Good luck with the house, that is rad!

Anne (#33)

@backstagebethy I bought a house this year with money that I withdrew from my Roth-IRA ($10,000 tax free!) and by selling some stock. I had the cost basis for the stock ready to roll, so it was really just a piece of cake. TurboTax even! Next year I’m hoping will be the first year that I actually get cash back instead if having to pay in. Nice.

emmy (#324)

These posts stress me out. Oh my god. Stop spending money.

Rebecca (#306)

@emmy Logan documenting her fiscal life also stresses me out. Logan, please get better at this for…my heart’s sake? (I could also not read these posts but then there would be even less money for Logan. It is a conundrum.)

i’m just trying to give a voice to my people. but: i stress me out too.

Mike Dang (#2)

@emmy Imagine how much it stresses me out! I am trying to help her see the light. The great thing is that you get to see how it goes, live, as it happens here.

neener (#242)

also, your dad was kind of hot!

Anne (#33)

Yikes. Be a grownup. If you can’t and are doing a bunch of 1099 work, you should be paying your taxes quarterly. Just do it. It’s nice.

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