Are you worried about getting the money to pay your taxes? The deadline is getting closer with few options available to make good on your tax liability. There is an extension to file the paperwork, but the IRS still wants it’s money on time. Tax time is a stressful time for many, as they try to come up with a cash advance or loans in order to make the payments.
Both the Earned Income Tax Credit and the Child Tax Credit offer much relief to middle and lower income households. These credits not only lower the amount owed, but become refundable when the credit is larger than the original liability. These tax credits were originally set up to help out the households struggling to pay their share of taxes. As somebody who appreciates the help, I also understand that I am lucky to qualify for both.
Those households without qualifying dependents will not receive the Child Tax Credit and may find themselves with a tax liability to pay come the middle of April. People who have too little withheld throughout the year end up getting the bill via filing taxes. Those who overpay, give the government a free loan throughout the year and the money is return after taxes are filed.
If a person does not file their taxes properly or on time, there are risks and/or consequences involved.
- Not filling out the forms properly may allow the government to keep some of the money you sent in. We don’t want that happening, now do we?
- Late forms or forms with mistakes can increase the chances of an audit.
- Taxable income is based on the adjusted gross income. Subtract exemptions and deductions to determine your taxable income. Leave something out and the IRS will tax you on it.
- Tax credits are usually more beneficial than deductions. If you qualify for a tax credit, it may behoove yo to go this route.
- Believe it or not, the IRS collect late fees as well. A payment deadline is just that, pay afterward and be subjected to a late fee.
- Be certain to include taxable income from retirement accounts, investments, profits form property sales and/or non-wage related. Back taxes do not go away.
Would you use a cash advance to pay your taxes?
Some folks may choose a cash advance in order to settle their IRS debt. it is not a cost effective approach to tax relief. The IRS is pretty good about setting up payments. Pay as much as you can on the first payment then work out a payment plan. The IRS calls this type of payment Installment Agreements. I am willing to bet that the interest charged by the IRS is less than a cash advance lender. There is no need to be afraid to owe the IRS as long as you are upfront and honest about your situation. The IRS understands that people have trouble, but it does take communication on the taxpayer’s part.
The IRS is no different than a creditor or cash advance lender, make arrangements prior to the due date. Most companies are willing to help work something out.
