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Thursday, February 12, 2009

About Credit / Debt Management: Should You Pay Taxes With a Credit Card?

About.com    Credit / Debt Management
In the Spotlight | More Topics |
  from LaToya Irby
One thing that's worse than filing income taxes, is paying income taxes. The economic slump will make paying taxes harder for many taxpayers. So hard, that charging income taxes might be the only option.

 
In the Spotlight
Pros and Cons of Charging Income Taxes
One obvious benefit of paying your taxes by credit card is that you no longer owe the IRS. On the other hand, you now owe the credit card company. These days, owing the IRS might sound more attractive. Read more about the benefits and drawbacks of paying taxes by credit card.

 
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You May Owe Taxes on Cancelled Debt
If you had debt forgiven in 2008, your ex-creditor may have sent you a Form 1099-C for Cancellation of Debt. Unfortunately, the government counts cancelled debt as income and wants you to include it on your tax return. You could end up owing taxes on the cancelled debt.

 
5 Smart Ways to Spend a Tax Refund
Getting a tax refund is always nice, but keep in mind it means you had too much income tax withheld from your paychecks. Usually, there's a temptation to splurge a tax refund. But I have a feeling no one's up to doing that this tax season. Here are a list of smart ways to spend your tax refund.

 
 
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