A lot of people do not budget and keep their taxes aside for payment when they file their returns. This leads to a situation where you owe the government money and are unable to pay. A common solution that many people seek is to get a fast and easy loan from many of the online lending companies which offer small loans. While this is definitely an option, you must take some time to explore other options.
Don’t be too eager to pay
In many cases, you may be eligible to receive an extension of a few months for payment. This can be enough time to save up the funds to pay the taxes. You can also use this time to explore even more options. Beyond this deadline, you will be charged a time-based penalty and an interest. Calculate and see how much this adds up to. Then compare it to the interest that you may need to pay if you take a loan. In most cases, a loan would cost you at least 20% interest. In most cases, it is more financially favourable to delay the payment of taxes.
Explore options to reduce the payable amount
If you can afford it, you must try to hire a professional service for filing your taxes. An experienced tax accountant would be able to find a few deductibles that you might miss and thus reduce the taxes that you owe. Make sure that you are using the right brackets for the most favourable rates. An accountant may also find deductibles missed in previous tax returns and make you eligible for a refund. This can significantly reduce your payable amount. Even if you cannot afford a personal accountant for filing your taxes, you can take measure to reduce your payable amount. You can use several tax filing online platforms which offer easy filing of taxes with all the deductibles laid out for you. Some of them also offer phone assistance included with their software licenses. If you are able to reduce your payable amount to a reasonable low amount, you can pay it off easily with a possible small extension.
Take a loan as a last option
Once you have exhausted your options, you can think of taking out a loan to cover your taxes. If you have an unmortgaged property, you can take out a secured loan for lower interest rates and easy approval. A small extension will help you complete the process on time. However, if you are right at the deadline of payment and have even exhausted your extension period option, you can take an unsecured loan from many of the online fast and easy loan options. These cost a bit in interest rates, but they don’t have many requirements and pretty much everyone with a stable job is approved to get a loan.
Conclusion
If you find yourself out of cash for filing taxes, you must first explore other options and turn to quick and easy loans as the last option. If you need to find lenders for quick loans, you can find many such lenders on Prontocash.com.au.
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