What to Do If You Can't Afford to Pay Your Tax Bill on Time

Sponsored

For many Americans, tax season can be a headache for a number of reasons. Gathering relevant documents to prepare for an accurate filing is only half the battle. Actually paying your tax bill can be burdensome for many, especially if that bill turns out to be higher than expected.

What should a person do if their tax bill is more than they can afford?

First of all, do not ignore it! Penalties can be severe and it accrues interest. The IRS calculates underpayment penalties based on how much you owe and how late you are in paying. Penalties typically range from 0.5 percent to 25 percent of the amount due

If you cannot find the cash or credit from short-term borrowing like on a credit card, consider a payment plan with the IRS. There are several options depending on the amount of tax due and the terms you need to pay it off. 

This tax advice is brought to you by our partner Jackson Hewitt.

Preparing your taxes? Here are more tips:

Tax Prep 2022: What You Need to File Your Own Taxes

Answering Your Crypto Questions for the 2022 Tax Return

Here's What to Do if You Miss the Tax Day Deadline

More In Business

Scaling Prefab with AI: Dextall CEO Aurimas Sabulis Tackles Housing Crisis

Aurimas Sabulis, CEO of Dextall, unveils how AI‑driven prefabricated façades slash design time by 80%, labor by 87%, and accelerate affordable housing delivery.

Home Prices Continue to Rise Despite Declining Sales

U.S. home sales slowed to their weakest pace in nearly 14 years, with rising mortgage rates and affordability concerns affecting market activity.

Jobs Report Underwhelms as Job Growth Stalls

Mark Hamrick of Bankrate helps make sense of the jobs report despite inflation but warns that uncertainty around tariffs could disrupt growth.

Star Trek plans Lego sets for the franchise’s 60th anniversary

Not many franchises have fueled society’s timeless fascination with the boundless possibilities of a utopian future like “Star Trek.”

Robinhood joins new band of companies calling the S&P 500 their home

Online broker Robinhood Markets will join the S&P 500 index Online broker Robinhood Markets will join the S&P 500 index as its stock rides higher on a cryptocurrency wave.

How you too can become a Hollywood insider at a test screening

Anyone can sign up to attend a test screening before a movie is completed.

Big Business This Week: Why does the Fed’s independence matter?

Trump wants interest rates to plummet to make borrowing cheaper and boost growth. Fed chair Jerome Powell and his allies say not so fast, they need to bala

LSD shows promise for reducing anxiety in drugmaker’s midstage study

A midstage study of the psychedelic drug LSD showed positive results for easing symptoms in people with generalized anxiety disorder.

Crunch Fitness President On Navigating Fitness with AI and the GLP‑1 Revolution

Crunch Fitness President Chequan Lewis talks how gyms are adapting to GLP‑1 weight‑loss drugs, integrating AI-powered workouts and embracing new fitness trends.

BetMGM’s Bold Playbook: CEO on Betting Season, App Upgrades & Industry Expansion

Adam Greenblatt, BetMGM CEO, shares insights on football betting forecasts, the booming sports wagering industry, and the game‑changing enhancements to the app.

Load More