Paying Your Taxes Out of Pocket? We Can Help.
The IRS expects that as many as 30 percent of taxpayers will have to pay their taxes out of pocket in 2018. In fact, people who will owe the IRS are expected to have an average bill of $5,294 according to the Consumer Advisors at MagnifyMoney. Should you find yourself in this situation, here are some options that we offer for you to consider.
Signature Loan from RBFCU
RBFCU offers signature loans that require no collateral. These loans are backed simply by your credit history, ability to repay and your signature promising to pay the loan back according to its terms. Since these loans require no collateral and come with a low, fixed rate, signature loans make it possible for you to borrow the money you need. Terms are flexible, and payoffs as long as 60 months are available.
RBFCU does not charge a cash advance fee. Once requested, the funds are deposited into your account in minutes. With cash ready to go, you can meet the April tax-filing deadline and avoid late fees and penalties. Simply request a cash advance via your online banking account, visit your local RBFCU branch or call our Member Service Center at 1-800-580-3300.
Line of Credit
A line of credit is available to RBFCU members, and it’s often used for unexpected expenses when you need a safety net in a financial emergency. Like a Signature Loan, it requires no collateral and the terms are based by your credit history and rating. Rates are typically slightly higher than those associated with a Signature Loan, and you pay only for the amount you borrowed plus interest based on the outstanding balance.
Installments with IRS
If you’re late paying the IRS, you are subject to penalties and interest on the owed amount. You can contact the IRS and set up an extended timeframe to pay off the balance. Short-term payment plans (120 days or less) don’t cost anything to set up and can be handled with automatic payments from your banking accounts, but accrued penalties and interest will apply until the balance is paid in full. Longer-term payments can be arranged, but set-up fees likely will be charged and accrued penalties and interest will apply until the balance is paid in full. If you find it necessary to make changes in the payment plan, the IRS could charge another fee. And, fees also are charged when you pay your taxes directly with a credit card. For information, please visit the IRS website regarding payment plans.
Which route is best to take? You can compare each by utilizing the “How long will it take to pay off my credit card balance?” calculator below.
How long will it take to pay off my credit card balance?
When considering these options, keep your credit limit in mind before deciding which is right for you. If you are in the market for other types of loans, these options could affect your debit-to-income ratio. Be strategic in your borrowing decisions.
This information is intended to provide general information and should not be considered tax advice. Please consult a tax professional for more information.
All loans are subject to credit approval. Certain terms and conditions apply. Rates and terms subject to change. Your APR will vary with the market based on the Prime Rate. Contact a member services representative or visit rbfcu.org for more details.