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The IRS is Hard to Pay

March 8th, 2013 at 10:34 am

How is my attempt to go "checkless" going? Not so hot.

I easily paid the state online this week, but when I went to pay the IRS I could not figure out how to. Not without crazy fees anyway. Ugh! You think I would know, but most my clients get refunds. OR are older and would not pay online. Though our state often requires it, so I knew the state was easy peasy.

I could have set the payment up when I e-filed. Mental note for next time...

I gave up and wrote a check. *sigh*

On a whim, I checked all the checks I wrote this year. I am already up to FOUR. (& it is barely March).

--2 checks for passports (no other option)
--1 check for repairman (no other option)
--1 check to IRS (Just easiest and cheapest)

I could easily see using no other checks for the rest of the year. Will see!

Property taxes are due in about a month, but I will probably just pay them next week - after payday. I have taken to paying those online with a $1.50 convenience fee. Our mail SUCKS, and this beats it getting lost in the mail. I have had online bill pay for well over a decade and so mostly stopped buying stamps a decade ago. Spending $3/year to make sure it gets there on time, is worthwhile to me. & does avoid the hassle of stamps and checks. & yes, I will probably start paying the property taxes all up front, so it would only be $1.50 per year. I considered it last December, BUT with AMT up in the air, it was possible I would not have gotten a tax deduction for the extra payment. This year I will reconsider, as our cash coffers are replenished, and I know the extra payment will be tax-deductible. (& interest rates suck. Pre-paying $2,000 will cost me about $5 in interest over 4 months. Yeah, whatever).

Surprisingly, I have never paid our entire property tax bill at once. Interest rates were too high last we both worked and were flush with cash. I wouldn't have thrown away that interest. These days I am leaning more towards simplicity - pay it once per year and be done.

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Other than that, I am just watching the pot boil. The spread between our investments (cash/mutual funds) and our mortgage balance is about $2,000. It is very possible we will cross over this month - more investments than debt. !! I think that is as good as debt free. Obviously it means more the more on the other side we get.

I just think that reaching that milestone is awesome. Next, the goal will be to "keep it that way." Big Grin

2 Responses to “The IRS is Hard to Pay”

  1. rob62521 Says:

    We pay our property taxes all at once so in case we would forget...no penalty.

  2. scfr Says:

    Y'all are doing great. (Yes, after 5-1/2 years of living in Texas I have starting using "y'all.")

    I wish I could remember when we hit the crossover point (I probably mentioned it in an old blog post), but I think we were in our late 30's, so our households are on a similar trajectory ... and we have the "advantage" of not having children. (Financial "advantage" ONLY I must stress ... lest anyone reading this think I feel anyone's dear children are a "disadvantage.")

    I don't like paying convenience fees so I have a bias towards writing checks, but I've started paying our vehicle license renewal on-line even tho I have to pay a fee. Not only do we get our new tags much more quickly, the system also automatically checks & verifies that we are meeting the state's insurance requirements so I don't have to mail in proof of that. In the past I've said "I refuse to pay fees" but I also know to keep an open mind. Now I say "I refuse to pay fees unless there is a clear advantage for ME."

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