| Should I pay taxes or credit card debt? |
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| Should I pay taxes or credit card debt? |
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eoliver89
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 11 Jan 2012
Location: Wilmington, NC
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| Should I pay taxes or credit card debt? |
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Hi everyone! I'm new to the forums and need some advice.
So I prepared my tax returns for this year (I haven't sent them to the IRS yet) and I owe $3000 dollars this year.
I currently have $3000 dollars in credit card debt. All the accounts are closed and not gaining interest, but are still hurting my credit because I am not making payments towards them.
I have $3000 dollars right now to pay off either the taxes or debit.
I was thinking about paying the debt off now to help my credit and to get the creditors off my back. However, if I do that I will have to ask the IRS to extend my payment by 120 days (I need time to save up an additional $3000), which we allow me to pay the $3000 dollars I owe them by mid August of this year without any penalty or fees.
Is this a good idea? Opinions please!
Thanks!
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Wed Jan 11, 2012 12:13 am |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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Wrong. You WILL pay late payment penalties regardless of any extension UNLESS you've already paid at least 90% of your taxes before the normal filing deadline.
Ref: http://www.irs.gov/publications/p17/ch01.html
Now, whether you prefer to pay the late penalties OR the credit card interest .... that's a different decision. But it's not a matter of just $3000, be aware of that.
~Tim~
Eye Candy : Why Whimsy
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Wed Jan 11, 2012 6:12 am |
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