<prompt> Human: Last year I worked full-time. Somehow, TurboTax is saying I owe 983.00 in federal taxes. I dont even know how. I had two jobs:Job 1: Jan-AugTaxable: 43,000 Fed Tax: 5,260.57 When I put this job into TT on its own, I had a 900 RETURN.Job 2: Aug-DecTaxable: 21,800 Fed Tax: 3,150 When I put this one in, it calculated it then for me to owe 983. That means it ate up the 900 RETURN from the previous job, and then adds another 900 that I would owe.The math to me doesnt add up.Anyway, lets just say that for shits and giggles that TurboTax is accurate and I owe. As of early January, I have been unemployed and in school. I have literally zero means of paying. I am using my military educational benefits to go to school and to survive on, which is non-taxable income. By law, that cant be subject to penalization. I have no job, nor the time for a job. What are my options? How does the IRS possibly expect me to pay with no taxable income?EDIT: Yes, I put in ALL information from my W-2s. The finally result is the same. Saying I still owe nearly 1k.  <response>: No matter what, file the federal return on time, even if you cant send any payment when you file.Assuming you e-file your federal return, you should expect to receive your first balance due notice CP014 in the third week of May.The balance due on the notice generally has your unpaid tax, plus assessments of penalties and interest. The most common penalties are the Failure To File FTF and Failure To Pay FTP. The IRS interest rate is currently 4 per year, compounded daily on the unpaid tax and penalties. The interest rate can be increased or decreased on a quarterly basis. The FTP accrues until the tax liability is paid at 0.5 of the tax per month or part of a month.If your financial circumstances havent improved when you receive the notice, call 1-800-829-1040 M - F 7am - 7pm local time and speak with a representative. They will ask some verification questions and research your federal tax account. Let the CSR know you are unable to pay the balance due because of a financial hardship; you are unable to pay in full or make monthly payments and also pay your basic living expenses.The CSR should then assign the account to a Currently Not Collectible CNC status. This status will prevent most enforced collections actions, such as wage or bank levy and a Notice of Federal Tax Lien. This status will not prevent the accruals of the FTP or interest, nor will it prevent future refund offsets to the balance due. The CNC hardship status is subject to automatic review annually, and you will receive annual reminder notices with an updated payoff calculation. While you are in the CNC status, you should make voluntary payments whenever possible.When your finances are on firmer footing, you can request a formal payment plan to get the balance due paid in full.Your state tax agency may or may not have a similar hardship status. 