![]() This cookie is set by Google and is used to distinguish users. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors. The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. ![]() These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit Score.Analytical cookies are used to understand how visitors interact with the website. This column was provided to The Associated Press by the personal finance website NerdWallet. “If you owe taxes, it’s better to pay as much as you can, as soon as you can.” “The IRS is probably the most powerful and relentless collection agency you can ever encounter,” Stern says. The IRS can even seize and sell your property. If you owe and don’t pay, the IRS can seize your bank accounts or garnish your wages and other income until all of the unpaid taxes, penalties and interest are collected, Stern says. The IRS has automated processes that match up forms like W- to tax returns, and if something is missing it can quickly result in a computer-generated discrepancy notice or an audit, Stern says. ![]() You also could charge a tax bill to a credit card or consider getting a personal loan to pay what you owe, Stern says. The IRS has payment plans that allow you to pay your bill over time. The IRS can come after you years or decades later. In addition, there is no statute of limitations on audits when you fail to file. But failing to file carries much higher penalties than failing to pay, says CPA Neal Stern, a member of the American Institute of CPAs’ Financial Literacy Commission. If you can’t pay your tax bill, it can be tempting not to file a return. Be careful, however, because the fees can make these loans as expensive as payday loans, and trap you in a similar cycle of debt if you come to rely on them. If you’re employed, you can ask your employer for a paycheck advance or emergency loan.Īnother option if you’re employed: payday advance apps such as Earnin, Dave or Brigit.These typically incur double-digit interest rates, but high-cost loans typically have triple-digit rates. If you have a credit card, consider a cash advance.If you can’t pay a loan, ask the lender about forbearance and other hardship options.If you need help paying bills, start by checking 211.org, a clearinghouse of government and charitable resources.These alternatives may not be as quick or convenient, but they’re often better for your financial health: Car title loans put your vehicle at risk of being seized for nonpayment. High-cost loans make it easy to slip into a cycle of debt, where you can’t make the payments and are forced to borrow again. That means paying thousands of dollars out of pocket if you get sick or injured, but at least you won’t face the kind of five- or six-figure bills that could bankrupt you.Īmong the most expensive ways to borrow are payday loans, car title loans and loans that don’t require a credit check. You also can lower premiums by opting for a high-deductible plan. Premiums have been lowered for most people this year and coverage can be free for many, including people who get unemployment benefits this year.Īn analysis by the nonpartisan health care think tank KFF found that the number of people who qualify for subsidies increased 20% as a result of the American Rescue Plan Act passed in March, and 4 out of 10 uninsured people would qualify for a free or nearly free plan. If you don’t have access to health insurance through work, check the Affordable Care Act exchanges at. You may be healthy now, but you’re just one bad accident or illness away from catastrophic medical bills. That could prevent having to cash out the whole account. For example, if you’re leaving your job you could roll your 401(k) balance into an IRA and take only what you need from the IRA. If you can’t avoid a costly withdrawal, you can minimize the damage by taking out only what you need and leaving the rest to grow. If you have a Roth IRA, you can withdraw an amount equal to your contributions without owing taxes or penalties. If you’re still employed, you could borrow from your 401(k) or halt retirement plan contributions temporarily to free up money.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |