- March 16, 2017
- Posted by: Alyssa Plumb
- Category: News
How to pay taxes? Use a personal loan
Tax season can either be really great for you or really bad depending on how much money you made and what kind of deductions and credits you qualify for. The average American ends up paying about $8,500 a year in taxes, though that can vary wildly depending on how much money you made during the year. If you owe money, then you can get a personal loan to help pay it to the IRS and pay the personal loan off in monthly payments instead of a huge chunk of change all at once.
Will I owe or get money back?
Whether or not you end up owing money when you file your taxes is dependent on how much money you have been having withdrawn from your check for taxes. When people get a tax refund during tax season, it isn’t because they are somehow off the hook from having to pay taxes. It is because they had enough money withdrawn throughout the year on their regular checks that they don’t have to pay anything. Instead, they get a refund. A lot of people qualify for refunds because of the withholdings throughout the year.
The problem comes for people who either were doing contract work to earn money or who didn’t withhold any money throughout the year. If you didn’t withhold enough money (say you maxed out your deductions so you wouldn’t have to withhold on your checks), then you will owe your taxes still. For people who are contractors, nobody withholds any money from your check, so you end up paying all your taxes at the end of the year instead.
The other problem for contractors is that you end up pay 15% of everything you made for social security tax. When you work at a company, they pay half and you pay half to help lighten the load. However, contractors don’t get that luxury and end up having to pay the entire 15%. This can really increase how much money you have to pay in taxes.
Get a personal loan to help you out
While it can be extremely overwhelming to get your tax bill and realize you have to come up with a huge chunk of change quickly, there are options available to you. You can apply for a personal loan online in a matter of minutes and have the money funded to your bank account as early as the next business day. You can then file and pay for your taxes.
The important thing is that you make sure to pay your taxes. People get put in prison for tax evasion all the time. It’s can’t be filed away under “bankruptcy,” and you can’t get away with skipping out on your payments. The government takes taxes very seriously, and so should you. Make sure you get it paid immediately to avoid any problems.