How to Pay Your Taxes on Time without Penalties

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By grouch
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Time is running out.

Another tax year is here and almost gone. April 15th is the deadline for all taxes to be filed. All penalties start on the next day. An extension to file your taxes does not buy you any time to pay because the interest starts on the 16th if your taxes are filed or not. If you can’t pay it off in full then paying some is better then nothing because the fees and interest will be lower.

Difficulty: Moderate

Instructions

Things You'll Need:

Knowledge of your accounts
Payment mailed by April 15th

Step 1

Plastic is not always the answer but can be helpful.

Paying with a Credit Card

I am usually against credit cards all together but if times call for it, and used properly this can really bail you out. If you have to use plastic, stick to one card instead of splitting up the balance between a few. You can not write credit card dept off that was used to pay tax depts. So keep to a simple plan, choose the lowest interest card and pay down as much as you can with in that first month.
Step 2

Many different accounts can build up a line of credit over the years.

Paying with a Cash Advance

You can use a cash advance offered on most accounts including checking, debit, and credit. Just be aware of the fees and how long you have to pay it off before interest starts. This method could buy you 30 days in the long run if you have the right type of account and have been a good standing customer for a length of time.
Step 3

Home is were you hang your hat and hide your money.

Paying with a Home Equity Loan

Your house at times is your biggest asset. Sure it looks nice and you have a safe warm shelter but in the long run it is sheltering an investment. Taking out a loan on your house, even a second mortgage can save you a lot of money in the end. Most loans have the first payment due around 60 days later and on top of it the interest you pay if any can be tax deductable.