Owe big taxes this year. Have a question

[kdog36]

I dont have the $$ to just grab and pay.

2 options.

1. pay back IRS thru payments?

2. Go to LOCAL bank and draw $$ out and pay them back at prob 8-10% interest (but at least its not IRS)

Opinions on what is better option?

[Wasted Memory]

Do you have to pay interest to the IRS? If not, this is a no brainer I would think. Unless the payments to the IRS will be more than you can afford.

[Cnasty]

Depends on which interest rate is lower. i would think the IRS option is.

Also adjust your W4s with you and your wife's employer to single or married withdrawl at single rate so i properly takes taxes so you won't owe in the future or very small amount.

Complete the IRS W4 calculator to guide you.

[kdog36]

thanks:

Yeah the interest will be the decider unless it just outrageous

W4. yep I need to update mine for sure

[kdog36]

Do you have to pay interest to the IRS? If not, this is a no brainer I would think. Unless the payments to the IRS will be more than you can afford.

I would assume there is interest. Even so I bet it is less than 8% but heck knowing its the GOV. it may be 40%

[wdoupis]

I am not filing until the late day. I am dreading this

[Wasted Memory]

Do you have to pay interest to the IRS? If not, this is a no brainer I would think. Unless the payments to the IRS will be more than you can afford.

I would assume there is interest. Even so I bet it is less than 8% but heck knowing its the GOV. it may be 40%

I honestly had no idea so I had to Google it. Looks like it's the federal short term rate + 3%. Not going to lie. Lost interest at that point and didn't look to see what the short term federal rate was on unsecured loans.

[packsyd2284]

I did the payment plan last year and they collected zero interest (the IRS)

[Cnasty]

I am not filing until the late day. I am dreading this

Yup, its my norm now. I got it to a science to owe a minimal amount versus them taking too much in my paycheck to get a refund. I prefer no refund and more money to offer them a free loan.

i used to always look forward to a refund before i started adulting.

[Uuaww]

I am not filing until the late day. I am dreading this

Yup, its my norm now. I got it to a science to owe a minimal amount versus them taking too much in my paycheck to get a refund. I prefer no refund and more money to offer them a free loan.

i used to always look forward to a refund before i started adulting.

I get max withheld and still don't get a lot back b/c of rental property I own being untaxed until I file... It's gonna be even worse if me and the GF get married as she is a minister and doesn't pay taxes until the end of the year...