I'm currently filing my 2023 taxes and it appears I'll end up owing around $5000-$6000 in federal taxes. It's not a complete surprise as I was informed by my new employer that it was a mistake on their side at the end of the year. I was hoping the amount would be less than $3000 but it is what it is.
I'm now debating whether or not to pay it in full or get on a payment plan. The reason for the payment plan is that I'm about begin my first home search in a few months. Paying the amount in full would require me to dip into my down payment/closing costs which I'd rather not do.
From my understanding, due to the amount owed being less than $10,000 the payment plan would have no minimum payments required as long as it's paid in full within 3 years which is the ideal route for me. My only concern is that when I begin talking with mortgage lenders in a few weeks/months, they may see the payment plan and either deny the loans or offer unfavorable rates. Any advice on what the best route would be?
Submitted January 10, 2024 at 09:12PM by DotabLAH https://ift.tt/2uPEdto
