What Should I Do if I Can’t Afford to Pay My Taxes?

Tax season can be stressful for various people including accountants and taxpayers. The best-case scenario is that you paid the correct amount of taxes throughout the past year and owe no money. You may also have paid more than you should have, meaning the government will reimburse you. If you paid too few taxes, however, you will owe the government and have to pay the amount in full. Depending on your employment status or financial situation you may not have the means to pay your taxes. If you can’t afford to pay your taxes contact a Rockland County criminal and municipal attorney for more information on your options.

Who Has to File Taxes?

Not every citizen has to file a tax return. Some people do not have an income and some simply do not qualify. Qualifications are dependent on multiple factors including your filing status, age, and income. If you’re unsure whether or not to file a tax return, the below guidelines are standard to determine who is required to file.

For those filing with a single status:

• Under the age of 65 must make at least $14,850
• 65 years of age or older must make at least $15,700

For those with a married status filing jointly:

• If both people are under the age of 65 they must make at least $27,700
• If one spouse is under the age of 65 and one spouse is 65 or older they must make at least $29,200
• If both people are 65 years of age or older they must make at least $30,700

For those with a married status but filing separately:

• Under the age of 65 must make at least $5
• 65 years of age or older must make at least $5

For the head of household filing:

• Under the age of 65 must make at least $20,800
• 65 years of age or older must make at least $22,650

For a widow or widower:

• Under the age of 65 must make at least $27,700
• 65 years of age or older must make at least $29,200

What if I Can’t Afford to Pay?

If you can’t afford to pay your taxes you should inform the IRS of your situation. They are willing to work with you especially if you filed on time and are being open and honest. There are payment plans that you can work out to pay the total sum over a period of time determined by the IRS.

You can even have your total amount owed reduced via an offer in compromise. You are compromising by agreeing to pay a lesser amount as your full payment.

Never ignore a payment deadline if you cannot pay as you will begin to accumulate penalties and fees against your total, increasing the amount of money you owe. Contact the IRS to inform them of your financial situation and work together to resolve the issue.