Any suggestion on how to pay off 20k in taxes would be gratefully accepted.
2006-11-29 05:45:07 · 7 answers · asked by isis 4 in Business & Finance ➔ Taxes ➔ United States
We actually have been overpaying our taxes so as to not get in this situation....however we were givven very bad advice to take out money from our 401k to buy a car and a downpayment for a house. Unfortunatly due to a privious bankruptcy we were turned down for the house and had leftover $ tahat we are being heavily taxed on.
2006-12-01 12:53:04 · update #1
Sadly to say, if you only pay the miniumum, it will take about 30 years to pay off the debt. No joke. The interest never ends so you are never getting ahead.
I suggest you pay more than the minimum, (more like 2-3 times) or say $200 or $300 if min is $100
Otherwise, determine what interest rate you are being charged, and see if you can take on eof your credit card accounts and pay it off (If the rate is lower). I have a card that I transferred $10k to at 1.99% from a 6.99% and I'm saving tons on the interest alone. I have about $50K in debt right now, and will be paid off in 4 years.
You really need to sit down and do a good budger, see what interest rates you are paying on everything, from the car to the house to the credit cards (and tax bill) and see what you have.
If you need to, refinance the house and take cash out to pay off the debt, then at leastyou can write off the interest of your mortgage.
Good Luck
2006-11-29 05:54:34 · answer #1 · answered by Jen 5 · 0⤊ 0⤋
Steven F is right. The only thing that I would add is for you to look into a partial pay offer in compromise. Look at IRS Form 656 and the instructions. See link below. Not available with FTB, but may be with the IRS. The FTB is never going away, but the payments to FTB are deductible on your federal income taxes.
2006-11-29 19:22:04 · answer #2 · answered by mattapan26 7 · 0⤊ 0⤋
If you can' refinance though a home equity loan, you have 2 options. One is to cut expenses somewhere to free up money to make larger payments. The other is to get another job to generate more money to make larger payments.
2006-11-29 18:09:35 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
If the taxes are more than 3 years old you might consider bankruptcy.
2006-11-30 10:43:30 · answer #4 · answered by woodluvto 2 · 0⤊ 1⤋
Their interest rates are high and you'd be better off with a Home Equity loan to pay them off.
2006-11-29 15:13:42 · answer #5 · answered by LC 2 · 0⤊ 0⤋
Maybe you should just have paid all of your taxes when they were due in the first place.
Try a debt consolidator or tax clinic.
2006-11-29 13:48:49 · answer #6 · answered by quatrapiller 6 · 0⤊ 1⤋
what the hell did you do?
2006-11-29 13:48:16 · answer #7 · answered by Yue J 3 · 0⤊ 1⤋