How to Pay Federal Taxes When Unemployed
Many times, a tax bill comes when a taxpayer can least afford it. If the tax bill that you have is too large, consider how you can arrange payment temporarily, until you can get back to work and earn income again. Always consider how you will make your way back to the job or investment sphere and earn back enough to get back on your feet.
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Instructions
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Try for a loan. Research different lending agencies to see what kind of lender you would stand the best chance with. You may have to try to "sell" your loan as an investment, and try various banks before you get what you need. Be persistent.
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Find a private loan. If you are universally rejected by "formal" lenders, see if a family member or other familiar person would be willing to make you a loan off-the-books to pay your federal income taxes. Many taxpayers understand the temporary dilemma that a tax bill puts on an individual, and they may see their way to helping you out. The advantage of an informal loan is less red tape; but if your benefactor is of the hard-nosed business variety, you may have to negotiate an agreed interest rate.
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Unlock all trust funds, mutual funds, etc. If you have an account that's been put away for special emergencies, the unpaid tax bill is the perfect reason to open it up. Find out if you have any "hidden resources" that would help you pay the tax bill.
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Get equity out of your home or other assets. For most taxpayers, the home is the largest asset. Yet another type of loan, a home equity loan, allows homeowners to borrow against the value of their properties. Take advantage of this opportunity, but be careful; exhausting home equity is a slippery slope and doesn't substitute for getting back into the game to get income.
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Get on an IRS payment schedule. Tax personnel from the federal government will generally help you find ways to pay long-term if you don't have the money for a tax bill up front. Working and communicating with the IRS is better than just paying a lot of penalties and fees later.
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