As tax season is underway, many individuals are likely assessing their financial situation. Many Tennessee residents often hope that filing their taxes will result in receiving a refund. Unfortunately, not every case results in a refund, and some parties may be left owing money to the government. Those with credit card debt may wonder how they will pay for their owed taxes, and the idea of putting even that balance on a credit card may cross their mind.
It is true that individuals may have the ability to pay their taxes by using a credit card. However, this solution may not be the best for everyone, and in some cases, may not be a solution at all. While the pros of not owing the government money may seem more agreeable, the cons of the situation need to be addressed.
Because credit cards often come with high interest rates, paying taxes with a credit card could lead to an individual owing more money in the long run. Tax payers may also incur fees from the IRS for paying with a credit card, which again leads to more money owed. Looking into other options such as creating a payment plan through the IRS may be a more beneficial route.
Credit card debt can feel like a curse to parties who have a significant amount. They may not even be aware of other options available to help with financial issues other than simply using credit. Luckily, there are debt management options available for qualifying individuals, and information on Tennessee state laws could help residents understand what options may be open to them.
Source: thestreet.com, You Can Pay Your Taxes with a Credit Card. Should You?, Bill Hardekopf, March 10, 2014