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Do you find whole premise of this tax refund site is a bit unsettling?
Have you claimed everyone but the dog as a deduction yet you still owe Uncle Sam?
Is your hard earned money already earmarked for pesky necessities (like food)?
If so, you aren’t alone. Our survey found that more than one third (34%) of those who expect to owe do not know how they will pay.
If you find yourself owing taxes and are not sure how you will pay, consider the following:
Start saving. Look for simple ways to reduce your daily expenses. For example, by brown bagging your lunch, you may be able to save as much as $100 a week.
File on time. The penalty for not filing on time is generally 5 percent of the balance due per month. The IRS recommends filing your taxes even if you are unable to pay. If you truly can’t get it done by April 17, file an extension.
Pay on time. The interest charged on late payments is determined every three months. During the last several years the interest rate has ranged from a high of 9 percent to a low of 4 percent.
Get Help. There are many institutions – including the government – who will loan you the money for a price. To request a payment plan, complete Form 9465, Installment Agreement Request, and attach it to the front of your income tax return.
Finally, don’t compound the problem. If you are tempted to pay your taxes with a credit card, consider the true cost of credit. The last thing you want to do is roll your tax bill into a revolving credit card balance that you will be paying on this time next year.
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