One of the most annoying things about taxes is that you usually don’t really have any idea of how much you need to pay until you receive the bill. If you aren’t lucky, then you could be in for a very nasty shock when you receive a very high bill! Hopefully, you will have been saving for your taxes throughout the year. If not, then you might find yourself in a very sticky situation indeed.
So, what are your options if you find that you need to be the tax man a sum of money that you can’t really afford at the minute? Here are a few tips that should be able to save you.
Try To Reduce It
It’s worth trying to see if you can reduce it. The sum you need to pay won’t be exactly set in stone and if you use an accountant, they will be able to help you bring it down if you are able to add on some more expenses. Business and work-related expenses are all tax deductible, so the more you have then the more you can reduce your final tax bill by. It’s worth thinking about any expenses that you might have missed. If you do think of any, let your accountant know and they will use them to reduce the final sum in the bill.
Use An IRS Resolution Service
It could also be worth contacting a service like the Tax Group Center. These are firms that work towards finding IRS resolutions and tax relief for those who have issues with their final tax bills. If you let them know your situation, then they will be able to see how they can help you.
Use Your Credit Card
Did you know that it’s also possible to pay your tax bill with a credit card? Even though this won’t help you reduce it or solve any issues that you might have with it, it does provide you with an opportunity to delay the payment. You will pay the bill with the card, and then the money won’t come out of your account until you need to pay your credit card bill. This could be a great option for those of you who can’t afford to pay your tax bill right now, but should have the funds to do so in another month or so.
Discuss Things With The Taxman
It’s also a good idea to speak to the taxman directly if you are going to struggle to pay your bill. If you explain your situation, then they could be open to you delaying payment. In some cases, they might even come up with a payment plan so you can pay off little by little each month. However, you should be aware that payment plans aren’t always an option, no matter how serious your situation may be.
It’s all too easy to end up panicking after receiving a tax bill that is a lot higher than expected. As you can see from this blog post, there are plenty of ways you can deal with it thankfully!