ADVICE FOR CONSUMERS FACING A BIG TAX BILL
GREENSBORO, NC-You've spent the better part of the weekend calculating your federal income taxes and now the moment of truth has arrived. Do you owe personal income taxes or are you getting a refund? If you are one of the millions of Americans who still owe Uncle Sam a lot of money, don't despair. Help is available at CCCS.
"Our credit counselors would be happy to analyze your finances and make recommendations," said Kelly Gill, housing and education coordinator at CCCS, a nonprofit, community service organization that provides confidential counseling, debt management and education programs to financially troubled consumers. "We can help you develop an emergency budget and go over your credit options which may include an Internal Revenue Service installment plan."
Depending on the size of your tax bill, you may be able to save up enough money before tax day, Apr. 15, to pay your taxes in full. If not, you need to familiarize yourself with the credit options available to taxpayers so you can compare interest rates and terms.
CCCS offers these money management tips for consumers who may have taxes due at filing.
Figure out your taxes now. Taxpayers who owe a lot of money need to know now so they can develop a payment plan. Set aside time soon to calculate your taxes or to have your taxes reviewed by a tax professional.
Set weekly savings targets. If you owe tax money, examine your budget and see if you can squeeze out money for taxes. Start by eliminating expensive meals, vacations and other discretionary expenses. Afterwards, search out ways to pay for necessities like food, utilities and clothes less expensively. Refrain from big-ticket purchases like a car or a big-screen television.
Moonlight. Inquire about overtime opportunities. Take a second job until your tax bill is paid. Hold a garage sale and sell that bicycle or couch that has been taking up space.
Research your credit options. Those options include a bank loan, an IRS installment plan and an IRS approved credit card. You'll pay interest on a bank loan, a processing fee and interest on an IRS installment plan and convenience fees plus interest to American Express, Discover and MasterCard - the approved IRS credit card companies.
Determine how you will pay off the loan. You can make a bad situation worse by falling behind on your tax loan payments. Make sure that you can live with the terms before you sign. Otherwise, you could incur penalties and late fees.
Always file. Don't compound your problems by missing the Apr. 15 tax-filing deadline. If you do, you may be subject to a "failure to file" penalty and a "failure to pay" penalty.
Change federal withholding. Many people with large tax bills simply didn't withhold enough from their paychecks during the year. Still others sold stock and failed to budget for the capital gains tax. Correct both scenarios and avoid similar problems next year.
See a credit-counseling professional for help. Treat your tax shortfall as a wake up call to get your finances in order. CCCS of Greensboro would be happy to review your finances. To schedule a confidential appointment, call 373-8882 in Greensboro, 889-6108 in High Point, or 1-888-755-2227 elsewhere.
If you owe taxes, get to work now so you can put those taxes behind you as soon as possible. They are not going to go away on their own. For help with money management or budgeting, contact CCCS. CCCS is a nonprofit, community service organization that provides confidential counseling, guidance, debt management and education programs to financially troubled consumers. CCCS of Greater Greensboro is a member of the National Foundation for Credit Counseling and a division of Family Service of the Piedmont. It has offices in Greensboro, High Point, Asheboro, Burlington, Lexington and Wentworth. To schedule an appointment with a counselor please contact us at 373-8882 or 1-888-755-2227. We also provide services online at www.thedebtdoc.com. 
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