Is paying my taxes in installments a bad idea?
April 10, 2012 10:38 AM Subscribe
I have a bigger tax bill than I expected, and I'm wavering between putting it all on a credit card and using the IRS installment plan. Have you put your taxes on a credit card? Have you paid through an installment agreement?
posted by ablazingsaddle to Work & Money (21 answers total) 5 users marked this as a favorite
I owe a fair amount in taxes this year (less than $1,000, bigger than a bread box) and I can't pay it without draining my savings. I'd consider doing that, but I work on a TV show that just wrapped for the season and money is going to be tight for a few months.
A lot of people have suggested putting it all on a credit card, but I'm already sliding into credit card debt and I'd like to buy a car in the next couple years and I don't want to wreck my credit before doing so. However, a lot of the verbiage on TurboTax about the IRS installment plan really freaked me out. (i.e., you must prove that you can't pay your taxes, etc., etc.)
On the plus side, it's not that much money, and I can pay it off in a few months.
Has anyone here payed their taxes through an installment agreement with the IRS?