My wife became ill about 2 years ago an could not work. We used credit cards and loans to pay bills ect. Now we owe this money and are paying them off. But now since we both work and are both making more money i have a feeling we will owe money when income tax time comes. Are there any programs that could help us, we are trying to get rid of debt but at the same time we will owe the irs. How do you handle this?
Whatever you do, DO NOT go through a debt consolidator-you will get ripped off beyond belief! I would contact each creditor and see what kind of deal you could make directly with them to maybe lower interest or eliminate it and just pay a principal amount to pay it down faster. As for taxes, you need to be sure you’re set up correctly for deductions on your paycheck otherwise you will owe. What bills you are paying doesn’t have anything to do with that, you need to have the right amounts coming out of your check to cover your tax liability. Maybe contact a tax professional for advice but in any case good luck, glad your wife is okay…
Your work should be automatically deducting what you owe the government from your paycheck. Check with your human resource department to make sure this is happening. If you think you will owe more than they are taking, you can have them deduct an additional amount every pay period.
you need to consolidate all your plastic into a once a month payment and manage your debit account. pay the overdraft protection fee so you don’t get nailed for bounced checks.
You should work through the estimated income tax form to determine if you are going to have enough withholding. If not, you can change your Forms W-4 now and take care of it. If you end up owing IRS a relatively small amount and can pay it off over three years there you would automatically be entitled to an installment agreement.