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Warning: I ignored a client's late payment for 3 years and it just cost me $2,000
They finally paid up last week, but the bank fees and tax headache from that old income hitting now are brutal... anyone else get burned by chasing ancient invoices?
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ericking2mo ago
Read an article once about a freelancer who got a five year old check. They said the tax hit felt like a penalty for finally getting paid, which is just wrong. That sudden lump sum can really mess with your tax bracket for the year.
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campbell.nora2mo ago
Totally see what you mean, @ericking. It feels like the system is built for steady paychecks, not real life. Like when you finally sell an old car and suddenly owe taxes on that "income" the same year you get a bonus at work. It all piles up and punishes you for having one good month, even if the rest were lean. Makes you scared to actually collect money you're owed.
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avery_walker301mo ago
My tax guy says the bracket jump is usually way less than people fear.
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