Do You Owe Money on Your Taxes?

Last year, my husband and I were shocked and horrified to find out that we owed almost $1000.00! Every year prior, we had received a big refund check, so to find out we owed so much was devastating. A thousand bucks might not sound like a lot, but on our small fixed income it was a fortune. If you too have been devastated to hear you owe money this year, remember it's not the end of the world. Here are a few simple steps to keep Uncle Sam from crushing your spirit, as well as some tips for fixing the problem and coming up with the money.

Step One - If you did your taxes yourself, consider seeing a professional.

If you are not an experienced accountant, and you did your taxes yourself (even with a program like Turbo Tax), consider taking the information to a professional tax consultant/financial advisor to see if they can help. Explain the situation. These people know all the ins and outs of the system and may be able to help you think of legitimate deductions you had not included.

Step Two- Remember that you have until April 15^th.

Once you have the final figures on how much you owe, remember that you do not have to pay right away. Even though tax services like H&R Block will offer to help you eFile right at their office, you do not have to do this. You can wait until April 15^th to get together as much money as possible, which by all means you should.

Step Three- Make the next few weeks until April 15th about coming up with as much as possible.

Don't just immediately turn to credit as a means of paying your income tax debt. Try to gather as much as you possibly can to send to IRS, without tapping into credit cards or home equity. There are all sorts of ways you can make extra cash, which are discussed later in this article.

Step Four- Don't even consider lying!!!

Once you have the final figures on how much you owe, remember that you do not have to pay right away. You can wait until April 15th to get together as much money as possible, which by all means you should.

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