Each year, millions of people in the U.S. file their taxes. While many get a refund, still others find out that they now must pay the IRS money. There are some steps that you can take if you owe to reduce your stress and anxiety. Here is a guide of what you can do if you must pay money to the IRS and get your home finances in order.
Before You File Taxes
If you worry you’re going to have to pay the IRS money, use an online calculator to estimate your taxes. You can also set aside money so that you have money to pay the IRS.
1. Check how long you have to pay the IRS
The deadline for paying your taxes is usually between April 15th and April 18th each year. How close is it until the deadline? Look at your finances, and see if you’ll be able to pay what you owe by then.
2. Set up a Payment Plan with the IRS
If you owe money, the IRS will usually allow you to set up a payment plan. Generally, even if you file an extension, you’re supposed to pay what you owe by April 15th. If you suspect that you may owe money, make sure to file early. This will give you time to file an extension plan and allow you to make arrangements.
You do not have to pay at the time you file, so file in advance. This will give you plenty of time to figure out if you owe money or not.
3. If you owe money, consider putting it on a credit card
If you owe a small amount, consider putting it on your credit card to pay it off. This will give you more time to pay and is especially helpful if you need money in an emergency since payment amounts are more flexible.
4. Consider taking out a small loan
If you do not owe a lot of money, consider taking out a small loan. Be sure to consider the repayment options and interest rates. Before you choose this option, attempt to make a payment plan with the IRS.
There are several different types of loans you can get. One option is a payday loan, as they are available for people with no credit, but they must be repaid fast. Another option is an installment loan, or general loan. These typically allow you an extended amount of time to pay back. An unorthodox option is to get a payroll advance online. This option will get you cash fast and has easy repayment terms.
Note: If you already must pay the IRS
If you already owe the IRS money, contact them for a payment plan. If they will not do a payment plan, consider the other options mentioned above. Make sure you pay attention to any letters you get in the mail; working with the IRS will stop the letters and calls. Please note the IRS does not usually call and anyone asking for IRS payment in gift cards is a scammer.
There are many different ways to work with the IRS if you must pay money for taxes. Remember, if you file early you don’t have to pay at the time of filing, and can pay on the final tax deadline. There are many different options for paying back the IRS, so do not panic. Take your time, research well, and choose the option that works best for you.