FOCUS: Tips on tax day if you can’t afford to pay now

Staff reports  |  State and federal individual income taxes are due today, a month after the regular deadline thanks to the pandemic.  But what do you do if you can’t afford to pay right now?  The S.C. Department of Revenue (SCDOR) says there are options:

First, the IRS advises, don’t panic. Both the IRS and the SCDOR offer payment plans that may be available to you.

Second, here’s what the agencies say not to do:

• Do not delay filing your return on time. Filing your return on time will reduce the amount of penalty and interest you will owe, which is added based on the amount of tax not paid by the due date (which is May 17 this year).
• Do not believe paying installments to the SCDOR and the IRS is your only choice. Weigh your options.
• Do not wait to begin paying your bill with an installment plan. Pay as much as you can by the due date so the interest charged on the balance going forward is lower.

Third, you may qualify for a payment plan with the SCDOR. If you want to request a payment plan agreement from the SCDOR, you must not have an active levy or garnishment with the agency, and you must first receive a notice.  There are several parts of an agreement that you must make with the agency.  For payment plan details and specific qualification information, visit the SCDOR’s website at dor.sc.gov/payplan. For information about payment plans with the IRS, visit IRS.gov.  

To prevent future tax bills, the agency says to determine what caused the bill, if unexpected. Consider adjusting your withholding or making or increasing quarterly estimated payments.

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