What My $11,000 Tax Bill Taught Me

By Rachel, Financial Specialist & Coaching Manager 

In 2020, I took AJ’s Heal Your Relationship with Money course—and I don’t say this lightly—it changed the entire trajectory of my life. It cracked something open in me. I started looking at money not just as math or spreadsheets but as something deeply personal, emotional, and connected to my sense of self-worth. You can read more about that part of my journey here.

After the course, I made a big leap. I made a career change and started working part-time at a recruiting firm as a 1099 contractor. I was still acting in NYC, and by the end of 2021, I had officially joined the Beyond the Green team (full circle moment!), also as a contractor. Plus, I had a few other side gigs— if there’s one thing I know how to do, it’s work many jobs at once 😂

By 2022, all of my income came from contract work. No taxes withheld, no employer to handle that for me—just me, my bank account, and a Google Drive folder of invoices. I was working with an accountant by then, so for 2022, we estimated what my taxes would be, and I paid that amount quarterly.

Here’s where things went sideways.

I was only saving the estimated amount we had discussed at the beginning of the year. But the thing is—I ended up making way more than either of us expected. (Which is a win! But also... a wake-up call.) I didn’t increase my savings or re-evaluate what I should be setting aside, and then, life got busy. I moved across the country with my partner, settled into a new city, got a dog, and when tax season rolled around in early 2023, I got the news:

I owed $11,000 to the IRS.

I was stunned.
Like—full body freeze, can't breathe, do-I-even-open-my-email-again—kind of stunned.

And then came the emotions:
Shame.
Embarrassment.
Self-doubt.

How could I let this happen?
I’m a budget coach, for crying out loud.
What will my clients think of me? Am I a fraud?

I really sat in it for a while. And I needed to. You can’t skip over the shame—you just have to move through it. But eventually, the voice of fear got quieter and the voice of truth got louder. And the truth was this:

I knew how to make a plan.
I had the tools.
I wasn’t alone.

So I got to work. Here’s exactly what I did:

Step 1: I paid what I could upfront.
Even though it wasn’t the full amount, I wanted to chip away at it immediately. That felt empowering. 

Step 2: I worked with my accountant to set up an IRS payment plan.
You can totally do this yourself on the IRS website—it’s simple and accessible. But having my accountant help gave me peace of mind and took some of the stress off my plate.

Step 3: I opened a 0% interest credit card.
Tax debt has interest, so I moved as much of the debt as I could onto a new, 0% interest card. This lowered how much I’d pay in interest while I worked on the total balance. 

Step 4: I created a sustainable payment plan.
I didn’t go into “throw everything at this” mode. That’s a fast track to burnout. I built a monthly payment I could realistically stick to while still saving, investing, and living my life.

Step 5: I refinanced to another 0% card.
After the first credit card 0% intro period ended, I applied for another 0% balance transfer card card to continue avoiding interest. (This takes planning and good calendar alerts, but it’s possible—and legal!) Read - everything you need to know about balance transfer cards.

Step 6: I adjusted my tax savings process going forward.
Now, I save based on actual income as it comes in, not just the estimates. I check in with my accountant at least twice a year, not just annually. I also run my numbers every month to stay on top of what I need to set aside.

Two years later, I’m still paying off that credit card.
But I feel amazing.
Not because I’m done— because I took control.

That tax bill taught me so much:
→ How to communicate proactively with my accountant
→ How to adjust and take ownership of my income
→ How to plan ahead as a full-time 1099 contractor
→ How to show myself grace when I make mistakes

The biggest lesson of all?
Budget coaches are human, too.

We don’t get a free pass just because this is our job—we still make mistakes. And sometimes, that’s the exact experience that deepens our ability to support others. I am a better coach today because I walked through this.

So if you’re reading this and feeling overwhelmed by a tax bill or financial curveball, I just want to say: You’re not broken. You’re not behind. And you are definitely not alone. You’ve got this. And if you need help, we’re right here.

With love (and taxes),
Rachel 💚