Are you in tax debt?
If you are, you’re not alone. The IRS is the most feared government agency in the United States, and that’s because they have the power to foreclose on your house, garnish your wages, and even put a lien on your bank account.
Not paying your taxes can be a very costly mistake. In addition to facing penalties and interest, you could also face criminal charges for tax evasion or fraud. However, finding enough money in your budget is possible with the right approach, even if it means cutting back on some luxuries.
Here are several strategies that could help you get the funds and avoid the consequences of falling behind on them:
Start a side hustle.
If you’ve got a skill, an idea, or something else that you can use to create a side hustle around your regular job, this might be the best way to earn extra cash!
But always establish that you have the time and energy to do it! It may take up some of your evenings and weekends. Also, ensure that what you’re putting up for sale is worth selling—don’t expect people to pay for something that’s not worth paying for.
Ask colleagues or families for leads.
If possible, ask people if they know anyone who could use help with various tasks such as yard work or pet care. It may seem like an unlikely source at first glance, but once word gets out about how much extra cash is involved in these endeavors, everyone will suddenly have someone who needs help around town! Make sure that whatever service(s) offered is affordable enough so everyone can benefit from them without feeling taken advantage of later down the line when taxes are due again next year!
Set some rules for yourself about the schedule and where these side hustles are appropriate. You don’t want to be working on them during work hours or after-work hours so much that it interferes with or takes away from your responsibilities at work—that’s not fair on your employer or yourself!
Do freelance work.
If you have a skill that someone else needs, whether it’s writing, editing, or data entry, you may be able to find work online as a freelancer. If you have a valuable skill or talent that others value and will pay for, then monetize it and take advantage of it.
Freelance jobs are often the best way to generate extra income during tax season because they don’t require a lot of time commitment, and there’s no need to quit your day job just yet (unless you want to).
If you have writing or content creation skills, this could be for someone’s blog or website.
If you’re good with numbers and spreadsheets, consider offering your services as an accountant or data entry specialist.
If graphics designing is your expertise, see if there are any websites or blogs that need help with their logos or graphics design.
Look online.
Many websites allow freelancers to advertise their services and search for new opportunities (such as Upwork). Check out these sites before heading out into the real world with an open mind and an eye for opportunity!
The possibilities are endless! Just make sure whatever job offer comes your way will actually be profitable enough so that when it comes time to settle your IRS tax debt at the end of the year (or quarter), there’ll still be money left over after paying all those expenses like mortgage or utility bills or etcetera.
The extra cash you earn from freelancing duties will eventually be your tax settlement funding or your start-up payment for your chosen tax debt relief agency.
Start a temporary spending ban.
Let’s say you find yourself in a tough situation where you need to scrounge money for taxes; starting a short-term spending ban may be worthwhile. What does this mean? Simply put, it means that for an allotted amount of time (typically a period of one month), you will not spend any money on unnecessary items and instead rely on the things that are already in your possession.
Buy and resell used items.
One of the most convenient routes to make a profit conserving is by reselling used items. The idea here is that you purchase items at a low price, possibly at a yard sale or flea market, then sell them for more on eBay or any online selling platforms available.
Additionally, you can make use of social networking websites like Facebook Marketplace to sell your unwanted stuff online.
If you’re not sure what to market, start scanning your house for anything that’s in good condition but doesn’t get much use anymore. If something has been left unattended for more than six months and no one in your family wants it, consider selling it on eBay or Craigslist (or another site).
If you’re not looking for a quick buck but want to make some extra dollars over a more extended period of time, consider starting your yard sale.
Through this financial tip, you can slowly begin your tax bill payment may be by negotiating with the IRS through their Installment Agreement program.
Time to use coupons wisely.
You can save money by using coupons. Using your coupons on things you need is good, but it’s even better if you use them on things that cost more than the coupon value and still save money.
The best way to get started is to buy groceries using coupons. Once you’ve done that, try making meals from grocery items purchased with vouchers.
This will help reduce your tax liability by lowering the amount of income taxes withheld from your paycheck each week or month because there’s less money in it already!
Borrow money from a friend or relative.
You can ask for a short-term loan, a long-term loan, or even a microloan. It’s your call!
If you’re at an impasse and need some help fast, it’s definitely worth considering asking someone you trust to lend you some cash until your next paycheck comes in.
Of course, this is only an option if the person who might lend you money will agree. But if they do (and are willing), it may be the easiest and fastest way for you to get what you need without having to pay back hundreds of dollars in interest on banking or credit cards or other forms of loans that can hurt your budget when they come due later on down the road.
If you can acquire a reasonable amount of help from someone, you can obtain tax debt relief by applying for the Offer in Compromise program.
The Offer in Compromise program is designed to help people who cannot pay their federal tax liabilities. The program is available to taxpayers who cannot pay the full amount of their tax debt because of financial hardship. If accepted, the IRS will settle your debt for less than the total amount owed.
Unsubscribe to unnecessary subscriptions.
You might be surprised to come to know that there are probably a few things in your life that you’re paying for that are simply not worth it. You can unsubscribe to unnecessary subscriptions, reduce your cable bill, cancel your gym membership, and even cancel your subscription to streaming services.
- You can temporarily put off the renewal of your gym membership and start going for a walk or jogging around the neighborhood or in parks.
- Instead of buying every meal in restaurants or food stalls, consider preparing your healthy foods from home. You are not only saving some greenbacks but also getting aware of what you consume for your body.
Your monthly subscriptions to some comforts can be added to your agreed monthly share of your Installment Agreement plan.
Use these tips to generate funds to pay your taxes and start your tax debt relief journey.
Taxes are an unavoidable part of life. As long as we continue to live in a society where taxes are required, we must pay them. The cheering news is that there are plenty of ways to raise money to pay your IRS tax debt—and they don’t involve taking out loans or using credit cards! You can easily find extra cash by selling old clothes, shoes, and other items you don’t use anymore, starting a side hustle like dog walking or babysitting, doing freelance work on Fiverr (or even full-time!), cutting back on unnecessary expenses like cable TV subscriptions and gym memberships, borrowing money from acquaintances or family members…the possibilities are endless!
If all else fails, we at Tax Fresh Start Initiative save your day by dealing with your IRS back taxes! We are your trusted tax debt relief professionals who will keep you from the IRS’s aggressive approach and ensure you get the tax assistance you deserve.
We are your go-to tax debt relief agency in negotiating a payment plan that works for you through Offer in Compromise, Installment Agreement, or Penalty Abatement.
Schedule your FREE tax consultation and let our solutions-centered experts assess your situation!
