How to Pay Off Tax Debt Faster 

Tax season is in full swing. Unfortunately, not every one gets big payouts from the government that they can splurge or invest with. Some taxpayers actually owe money to the local and federal government every year. These amounts can really get out of hand – especially when you tack on penalties and fees. With little time to repay it all before more money or harsher penalties are applied, it can get downright stressful to deal with. Fortunately, there are ways you can pay them down faster.

Use a Short-Term Loan

If you have a tax debt that’s past due, you want to get it paid right away to avoid further action from the government. A payroll advance or online short-term installment loan can get you out of a bind. It’s easy to apply for, is approved in seconds, and could get you as much as $1250 in your account within one business day. This allows you to pay the taxes in full up front (or at least a large chunk of it) and repay the loan in monthly installments without fear of additional fees and penalties.

Ask to Have Fees and Interest Eliminated or Reduced

If you have a sizeable tax debt that seems to have multiplied due to fees and interest you can ask the government to cut you a break. If you were dealing with unforeseen circumstances, have had a dramatic income change since filing, or have some other legitimate and verifiable reason for your lateness in paying they may be willing to eliminate or reduce the penalties.

Get a Side Hustle or Part-Time Gig

You may not like the idea of having to get another job just to foot a tax bill, but it’s a lot better than what could happen if you continue to not pay. You can find a side hustle doing something you enjoy or are skilled at to bring in extra income or apply for part-time positions in your area. Just make sure that every cent you earn from this second income source goes towards your tax debt to get it paid off faster.

Ask for Help

For taxpayers who owe more than $10,000 to the IRS or state, there is help available to you. There are service providers who will review your information and determine if you’re eligible for programs that help to lower your tax bill. They can also work on your behalf to negotiate with the government to get the costs reduced and work out a repayment plan that is more convenient for you to afford. If you do qualify for an installment plan, however, you’ll want to make sure you’re paying on time as you may not be shown the same leniency in the future. 

If income tax season gets you all stressed out because of the amount you’re going to owe (or the amount you already owe) the last thing you want to do is ignore the problem as it will only get worse and cost more. The best way to get ahead of the situation is to use the above-mentioned ideas to get that bill lowered enough to fit in your budget.

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