It’s not always easy to manage your taxes. You can find them difficult to handle, especially if you manage to get behind on paying them. When you’re having problems with your taxes, claiming available tax relief can help you to relieve the pressure so that you can breathe again. Tax relief is any program or scheme that allows you to reduce the amount of tax that you owe, which could include property taxes, income tax, and other types of tax that you are required to pay. This article is designed to give you tax relief help so that you can deal with any problems you are having with your taxes.
Tax Relief When You Owe the IRS
There are a few ways you could seek tax relief when you owe the IRS. What you decide to do might depend on whether you need more time to pay your bill or you’re unable to pay it at all. When you’re looking for more time to pay your bill, a payment plan could be the solution that works for you.
The IRS offers short-term payment plans of 120 days or less, or long-term payment plans, which last more than 120 days. With a short-term payment plan, you can owe a maximum of $100,000 and it is free to apply, with the option of paying through automatic withdrawals from your checking account, by check, money order, or by credit or debit card. Long-term payment plans can be for up to $50,000, with fees of up to $225 to apply, depending on how you choose to pay and which method you use to apply. The cheapest method is to apply on the IRS website.
If you choose tax relief via a payment plan, interest and penalties for late payment will still accrue until you have paid off what you owe.
Another option when you owe taxes to the IRS is an offer in compromise. Using this option, you can pay less than you owe if you can’t pay your taxes or if paying your bill will mean you experience financial hardship. This option is not as easily accessible, with only around half of requests accepted, but getting professional help with tax relief can help you. You will need to fill out IRS Form 656-B and pay a non-refundable $205 fee and initial payment.
Finally, you can ask to have your account marked as Currently Not Collectible. This indicates that you can’t pay your taxes or your living expenses. It is a temporary solution, and you will have your finances reviewed each year to see if your income has improved. It also only puts your tax on hold. It doesn’t make it go away, and the IRS might file a tax lien.
Tax Relief on State Taxes
If you are struggling with state taxes, there may also be tax relief help available for you. Many states handle tax relief in a similar way to the IRS, but each state has different rules and tax relief processes. When you use tax relief experts to help you, you can navigate the options available in your state. If you want to find out more information, you can check your state’s website.
Tax Relief on Property Taxes
Some people may be able to get tax relief help with their property taxes. For example, in New York, property tax relief is automatically applied for those who meet the criteria. Most states offer property tax relief based on homestead exemptions, providing relief for homeowners who claim their primary residence in that state. Some states might have property tax relief programs based on other factors, such as the age or the income of the homeowner. If you want to claim tax relief on your property tax, you should look at your state’s website to find out what is available.
Tax Relief for Expatriates
Another type of tax relief that is available is tax relief for expatriates. American citizens living and earning money outside of the US still have an obligation to pay tax in the country. However, they have a tax relief of $105,900, which they can apply for through the Foreign Earned Income Exclusion. This means that they only need to pay for any money that they earn above the exempt amount.
There are various forms of tax relief that you can benefit from, both before you find yourself struggling to pay your bills and when you start experiencing problems. With help from tax relief experts, you can address your issues.