16 Things to Do When You're Deep in Debt There are many strategies consumers can use to deal with their debt and get ahead. Geoff WilliamsandErica SandbergMarch 28, 2025 What Is the OASDI Tax? Almost everyone who earns money has to pay the OASDI tax, so familiarize yourself with it now...
One of the biggest reasons to file as soon as possible is to avoid tax fraud. Maryalene LaPonsieMarch 18, 2025 What to Do if You Can't Pay Your Taxes As long as you make some sort of effort to report and pay your taxes, you're not likely to get into criminal trouble. ...
According to the IRS, it may be an option if you absolutely can’t pay your tax debt or if doing so creates a financial hardship. But it's much harder to get the IRS to sign off on an offer in compromise than on a payment plan. The IRS typically accepts fewer than half the ...
If you're looking to tackle your federal tax bill another way, the IRS suggests sticking to an online tax payment method, such as Direct Pay or a credit/debit card, before resorting to mail. Still, a few more payment options, including same-day wire and cash, are available. Click on e...
If you're worried you won't be able to pay your tax debt, don't let that deter you from filing an accurate return on time. "The most important thing is to always file a truthful tax return. If you can't pay what you owe, there are options. However, if the return wasn't file...
How much do you currently pay each month toward debt? Can you temporarily trim a few budget items to put even extra toward debt? Any extra income—tax refund, side hustle, things like that—to put more toward debt? The 50/30/20 approach3simplifies budgeting: ...
Eliminate the highest-interest-rate debt first. Pay as much as you can over the minimum payment on your highest-rate debt, paying minimum payments on all other debts. When you pay off the highest interest debt, move on to your next-highest-rate debt. Save tax-deductible debt, such as st...
Using your tax refund to pay down debt (especially high-interest credit card debt) often reduces future interest charges, saving you more money. Beyond credit cards, making an extra payment on a mortgage, personal loan, or car loan can reduce the amount of interest you’ll pay over the ...
What to Do With Your Tax Refund If you end up getting a refund, how should you spend it? Experts agree that prioritizing savings and debt payments is the best choice. “The best thing to do with extra money is almost always to save it, invest it or use it to pay down debts. Howev...
Use any extra moneyto double up on payments toward a debt. This will help you pay the principal loan amount faster, so you will pay less interest in the long run. Use your tax refund, money earned from working overtime, birthday money, or any other unexpected money to pay more than th...