AICCCA Offers Last-Minute Tax Tips for Those Who Owe
Fairfax, VA (PRWEB) April 08, 2014 -- Tax day is one short week away. Now is the time for those consumers who have put off looking at their 2013 taxes because they will owe to sit down and determine exactly how much money they will need for the April 15 deadline. For those consumers who owe more than they can pay, it is also time to figure out how they will cover the cost.
“We always encourage consumers to plan ahead, but for those who did not, a plan is still needed,” said David Jones, president, Association of Independent Consumer Counseling Agencies. “Consumers need to explore all their options and choose what is right for their situation.”
To help, AICCCA offers the following tips:
Generate extra cash. Consider a part-time job. Also, check into any opportunities for over-time or extra hours at your current place of employment. Hold a garage sale or take advantage of online auction sites for larger items, like boats and ATVs. Target the monies earned for your tax bill.
Look at borrowing options. If you are still short and find you must borrow the tax money, be sure to compare interest rates and terms to find the option that is right for you. Of the available options, be advised that you will pay interest on a bank loan, a processing fee and interest on an IRS installment plan and convenience fees plus interest to credit card companies.
Be sure to file on time or get an extension. If you need more time to file, the IRS does accept extensions on filing through April 15. However, keep in mind that a filing extension is not a payment extension and you will likely have to make at least a partial payment on April 15.
Lower the number of deductions you claim. If you consistently owe income taxes, lower the number of withholdings you are claiming or have your employer take an additional amount in taxes if you already claim zero on your W4. Depending on the amount you owe, a penalty could also be assessed for underpaying.
AICCCA: Founded in 1993, Association of Independent Consumer Credit Counseling Agencies is a national membership organization established to promote quality and professional delivery of credit counseling services. AICCCA and its members are focused on financial education, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, annually counsel millions of consumers nationwide and provide debt management services to consumers with excessive unsecured debt. To contact an AICCCA member agency, call (866) 703-TRUSTAICCCA (866-703-8787) or visit http://www.aiccca.org.
Shari Bedker, Association of Independent Consumer Credit Counseling Agencies (AICCCA), http://www.aiccca.org, +1 (703) 934-6118, [email protected]
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