Even when most of us are expecting a tax refund, getting an unexpectedly high bill from the IRS is possible. Since we might be receiving an unpleasant surprise, thinking of convenient tax payment options to cover our balance is essential. This way, we’ll make sure we’re taking care of any possible debt with the IRS beforehand. If we don’t, we might find ourselves subject to different interests and fines.
Some of us might have enough in our savings to cover our IRS balance, yet there are other convenient tax payment options we can take advantage of. The most common one would be using our credit card to make the payment. If we don’t have one, though, applying for a credit card or personal loan can be another option. We can also ask for an installment plan with the IRS so we can cover our tax balance.
Use Your Credit Card
One of the most convenient tax payment options to cover our balance is using our credit card instead of cash. This gives us the opportunity to have some extra time to cover our balance. We all know credit cards can be really helpful yet dangerous if we’re not careful. If we decide to pay the IRS with our credit card, we must remember to pay the card’s bill entirely. Otherwise, we would start accruing interests and even late fees if we forget to pay on time.
Apply for A Credit Card with 0% Interest
If we have been thinking about getting a credit card, this might be the perfect time to apply. As we mentioned above, credit card payments can be quite convenient tax payment options as they give us some extra time to actually cover the given amount. Getting a card that offers an introductory 0% interest rate sounds too good to be true. However, some banks tend to have this kind of specials available every once in a while.
Get A Personal Loan
Another way to get funds and pay our tax balance is through a personal loan. Depending on our debt to the IRS is the type and amount of the loan we will ask for. We should also keep in mind that, if we don’t pay it on time, we will be subject to interests and some other fees. This is the opposite of what we want, so we must remain careful and consider our expenses.
Work an Installment Plan with the IRS
Last but not least, the IRS has many payment options and installment plans available for taxpayers. These installment plans are offered in order to help us avoid interest charges and monthly late fees. If we fail to file our taxes on time or pay the balance we owe by the due date, we are subject to such charges. Thus, the IRS designed payment plans for both individuals and businesses. You can see if you are eligible or not directly through their website.