Tax administrators say that most Americans pay a little more than they owe on their taxes, which is about $2,500 a year.
But that is only a small fraction of the federal government’s $1.2 trillion budget.
If you have a credit card balance, a mortgage, a car or other property, you could be paying taxes on that, too.
And if you have cash on hand, your tax bills could be about $400 to $800 a year, according to the IRS.
A credit card could be a tax-free asset, said James Hensley, the director of the IRS’ credit card and personal finance division.
The IRS doesn’t collect a fee to process a credit or debit card, he said.
Taxpayers have to be honest with their bank, which will assess taxes based on the information in the credit card statement.
“That’s why they call it a credit report,” said Hens, who works with the agency’s Credit Card Counseling and Services Division.
If your bank isn’t honest with you, you might not know about the account you opened, or the taxes that went toward it.
You’ll need to file a tax return for each year you have an outstanding balance.
And, if you do have an account, the IRS will review your financial information to see if it is accurate.
The agency will send you an IRS Form 1099, which has the IRS’s name, address, Social Security number and other information.
Tax experts said they didn’t want to say what’s on the forms, but they would say the tax code is simple, and it doesn’t require a lot of thinking.
“The average taxpayer doesn’t have to think about the taxes they owe,” said Larry J. Schram, the senior tax adviser at the Tax Foundation.
“It’s very straightforward.”
What to do if you owe taxes What to expect when you file a return Taxpayers who owe taxes could have trouble keeping up with the paperwork they have to fill out.
The Taxpayer Bill of Rights explains how to keep your tax bill and books straight by making sure your taxes are correct.
But the IRS does provide tips on what to do in cases when you do owe taxes.
For instance, if your taxes were paid before April 1, you may have to pay back the full amount you owe, the tax collector’s office said.
If the IRS determines that your taxes have changed, it may ask you to pay the new amount, or it may offer to pay you back any portion that is over $10,000.
“You may need to take out a loan or take out another asset to meet your new payment obligations,” the IRS said in a news release.
The statement also noted that “the IRS does not accept credit card refunds or credit insurance claims.”
For that reason, it doesn’ t recommend that you file for bankruptcy.
If that doesn’t happen, the agency recommends filing for bankruptcy to pay off your debts, get an order of protection or get other financial help.
The tax code isn’t perfect, but there are ways to pay less tax if you don’t need to.
Here are some ways you can make sure you’re paying less: You’re not in arrears on your taxes.
Some people pay more than their fair share.
Taxpayer advocates say it’s possible to avoid paying a large amount of taxes if you file your tax return with a late return, a slip or error.
If this happens, you can still file a timely return and get the money you owe.
If it doesn`t happen, you’ll have to try again.
You can also pay the full tax owed, or to reduce your tax liability, if the IRS requires you to do so.
You may have a smaller tax bill if you’re a self-employed person, but that’s up to the individual taxpayer.
If he or she has more than one business, you have to file jointly and report all business income, even if it’s not your main business.
The Internal Revenue Service says you should also keep your taxes as low as possible if you`re a single person, if: You`re not married and you have no dependents.
You`ve been married for more than five years.
If a spouse is filing jointly, you must report income from each joint business separately.
If one of you has more employees, you should pay all the employees the same rate.
If both of you are married, you will be taxed separately on each employee’s wages and income.
For more information, see the IRS`s Tax Guide for Taxpayers.