Will you owe the IRS more money?
Every year, millions of people wonder if they will owe the IRS more money or receive a refund check. And of course, the only way to find out for sure is to file your final return. If you find that you owe the IRS more money it is not the end of the world. That being said, you do need to pay what you owe. Remember, this is not something the IRS is doing to you; it is something you did to yourself. If you owe the IRS additional money it is because you did not pay enough in taxes during the previous year. Instead of getting mad you should pay what you owe while learning from this experience so it does not happen to you again.
If you owe more money you have two options: pay it in full or opt for a payment plan (often times through the IRS). Which option works better for you? Simply put, if you can pay your entire liability in full you should do so. This way you don’t have to worry about applying for a payment plan, and of course, having interest tacked on top of what you already owe. If you don’t have the money on hand you may want to opt for a bank loan as opposed to dealing directly with the IRS. This may help you save on interest, but you won’t know for sure until you see what both options are offering.
As noted above, there is no way of knowing whether or not you will owe the IRS more money until you file your final return. Keep your fingers crossed that you will receive a refund. If this doesn’t work out and you owe additional taxes you need to consider how you will pay and then take care of it before the deadline.
