Tax Bill Too High? Here’s How to Pay It Off Smartly
If you're filing your 2024 federal tax return and owe more than you can afford right now, you're not alone — and you have options. The IRS offers several payment plans to help taxpayers stay in good standing while paying off their balance over time. Key Deadlines to Remember: Tax filing deadline: April 15, 2025 Late filing penalty: 5% per month Interest: 0.5% per month, or 7% annually Filing your return on time — even if you can’t pay the full amount — helps you avoid the steepest penalties. And paying as much as you up front will reduce interest accumulation. Payment Plan Options: Short-Term Plan: For balances under $100,000 Up to 180 days to pay in full Long-Term Installment Plan: For balances under $50,000 Monthly payments for up to 10 years Direct Debit option available to avoid missed payments Additional Relief Options: Offer in Compromise: Settle for less than y...