1 in 5 US taxpayers could owe the IRS money this year. If you don't have the money to pay, take a deep breath — there are things you can do. - NBCNewsBETTER
, the Government Accountability Office estimated that about 30 million people — 21 percent of U.S. taxpayers — would owe the IRS money this tax season because their employers didn’t withhold enough from their paychecks during the year.
“Most people are paying less tax in 2018, but their income tax withholdings didn't always match up with that decrease,” explained Alison Flores, principal tax research analyst at The Tax Institute at H&R Block. “Sometimes, the amount of tax an employer withheld decreased more than the actual tax liability decreased, and people are just now finding out about this under-withholding.”Maybe you have enough in savings to cover the higher tax bill. If not, don’t panic.
. They take Visa, Mastercard, Discover and American Express. Each company has a service fee, about 2 percent of the amount you’re charging . So, if you owe the IRS $2,000, you’d pay the payment processor about $40 to use your credit card. Keep in mind: If you can’t pay off that bill in full when it shows up on your credit card payment, you’ll be stuck paying interest. Right now, the average interest rate is 17.84 percent,If you qualify, you can charge the tax payment and potentially have up to 18 months to pay off the bill with no interest.
“Look at your total debt and if you can pay it down [the tax bill] by the time that introductory zero percent interest rate period ends, then that's actually a pretty smart move,” said Coombes. “Yes, you are paying that 2 percent processing fee, but you're paying off this loan with zero interest. So, that could be a great way to do it, if you have that option available to you.
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