Destroying Debt: Beating Taxes | brokeGIRLrich
Destroying debt is something that is constant. It’s not a one-and-done type of problem. If you’ve tackled paying off your debt, that is a huge milestone and you should be proud of your hard work. However, experience has shown us just how quickly we can slide back down the slippery debt slope. Good habits are easier to follow once we’ve dedicated ourselves to them as part of our lifestyle, but there are financial problems we all of sudden can face that make us feel like we are left back at square one.
Taxes can have a huge impact on our budget and send our finances spiraling. If you are already battling debt, it can be discouraging to have hundreds or thousands of dollars tacked on to the total. Even if you’re not deep in debt, taxes are still pretty demoralizing. So, what’s the solution? How can you beat taxes? There are actually a few solutions to choose from if you think you’ll be facing tax problems come April.
Connecting with a tax debt relief company can help you understand what option is best for you. You can find help through several resources online. Community Tax is a tax debt relief company that allows you to set up a free consultation just by filling out a simple form through its website. Among the debt relief solutions offered, these types of professionals can help with an offer in compromise. This type of contract with the IRS basically means that you are asking for leniency from the government to pay less in taxes.
Of course with this offer in compromise, there are qualifications you must meet and terms you must comply with, as with any type of contract, but it provides an opportunity to stay on top of your debt. The IRS requires documentation and you have to fill out some paperwork, so the application process can take some time. It’s best not to wait until the last minute to get information about this option. Taking initiative will help you keep on top of your debt and battle it before it becomes a bigger problem.
Even if the offer in compromise is not the right fit for you, you can still discuss setting up a payment that can more closely align with your current financial situation. You destroy debt by fighting it head on, not waiting for it to suffocate you until you feel helpless.
I feature debt profiles on my blog to not only share stories of success from real people who have endured money struggles, but also to let you know that you are not alone in the challenges you face on your way to your own financial goals.
It’s not easy to predict every curveball life throws at us, but the better prepared we are, the easier we find a way to manage. If you have dedicated this year to creating a brighter financial future, I’m rooting for you! Take a peek at my money bucket list. Hopefully, it will inspire you to create your own. Remember to reward yourself along the way and know there will be setbacks, but you can beat your taxes and ultimately, destroy your debt.
I feature debt profiles on my blog to not only share stories of success from real people who have endured money struggles, but also to let you know that you are not alone in the challenges you face on your way to your own financial goals.
It’s not easy to predict every curveball life throws at us, but the better prepared we are, the easier we find a way to manage. If you have dedicated this year to creating a brighter financial future, I’m rooting for you! Take a peek at my money bucket list. Hopefully, it will inspire you to create your own. Remember to reward yourself along the way and know there will be setbacks, but you can beat your taxes and ultimately, destroy your debt.
I hate paying self-employment taxes on my side hustle income. It sucks! But that’s part of it and taking taxes into account for your earnings is important.
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I have a friend who is working online for almost 5 years now and when I asked her if she’s voluntarily paying her tax and surprisingly she said she didn’t pay her tax!
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Yikes – I hope that doesn’t come back to bite her in the butt.
The last thing you want is to be in trouble with the IRS. The only thing worse is if you have payment arrangements with them and don’t keep it up. I would have to think now with the budget cuts and reduced staff there it would be even worse if you ran afoul of them and was in their tax recovery/penalty system.
LeisureFreak Tommy recently posted…5 Non Financial Signs you are ready to Retire
I recently found out I owe the IRS a couple grand from a few years ago. Talk about stressful! Fortunately I was able to set up a very reasonable payment plan with a very low interest rate, but I still hope to pay that puppy off as soon as possible.
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Ugh, that’s lousy. I’m glad that the interest rates are at least reasonable.
I’m glad that you included those success stories. It’s good to see that there have been people that have gone through financial struggles and came out on top.
I agree that it was a great idea including a link to the success stories. Tax Debt is a pain in the neck but it is possible to resolve it and there are options to resolve them. Thank you for sharing, great article.
Learning about the Community tax relief plan is something quite new and sounds somewhat familiar to the investment forums that my father talked to me about. It seems like he himself is also having trouble with debt and that’s why the both of us are finding help in tackling our debts. So far, my issue would be is to lower the debt on the owed taxes that the my wife showed me last night.
Doing taxes is something that I’m not good at and need help getting ready for this year. There are so many things that go into this though and its hard to know where to start. This helped though and I hope that we can get this figured out soon.
Last year we owed about $2,000 in taxes and it definitely was a huge blow to our efforts to get out of debt! I didn’t know that there are options for compromise with the IRS. If we end up owing again this year, I’ll definitely be looking at that option! Thanks for the info!
A tax relief debt is something that has me wanting to do for my cousin. Her situation is somewhat difficult because of all the debt that she’s in. Somehow there was a charge that she didn’t know about and that charge has been building up to $5,000.00
Ugh, that must have been a massive charge! She might be able to call the company and explain her situation. Sometimes they will give you a bit of a break and work out a repayment system.
Getting out of debt can be tough but handling it with a plan and knowing how much you need to pay can make it that much easier. Thanks for sharing!
Great post! Definitely some great advice and tips to keep in mind. Thanks for sharing!
Awesome post! Also hiring a professional to help with your taxes can be very beneficial by helping you save a lot of time and stress!
if you are unable to pay your tax debt settlement within the next ten years, or the specified collection stature, then the IRS is given the get-go to claim your properties and assets as payment to your debts.Definitely great advice to keep in mind .Thank you for sharing the post.
Very useful information here. Also, you make an especially solid point – avoiding debt will only cause it to grow and create more problems for you in the future. Even if you take care of it little by little, it’s still something.
Taxes and debt with high interest. These really break all your efforts in managing your finances effectively if you are already struggling with debt. I agree with you on tax debt relief and also recommend debt consolidation when necessary.
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