Paying your personal income taxes is an annual obligation, and major financial responsibility. Preparing for them independently doesn’t have to be expensive, time-consuming, or unnecessarily complicated. Access to information and useful resources will simplify the decision-making process.
What You Should Know
There are multiple taxing authority you could owe money after the end of the year – if you have underpaid your state and local taxes, you could owe them money too. Fortunately, you may be able to consolidate your tax debt with an unsecured personal loan and pay all of the taxing authorities in full.
Depending on the dollar amount of your taxes, and your eligibility to participate, you may be able to negotiate a payment plan with the respective taxing authority that provides you an opportunity to pay off your tax debt with monthly payments. An option that could help you avoid unwanted wage garnishments, and costly long-term consequences such as debt collections, and tax liens.
Entering into a repayment agreement with a taxing authority after you file your taxes could potentially complicate your future borrowing needs – limiting your ability to consolidate your debt, lower your total monthly expenses, and better prepare you for future tax obligations.
An unnecessary complication you may be able to avoid with an unsecured personal loan.