Tax Day Around The Corner

America - you have two weeks from today to settle up with Uncle Sam...

Because April 15th falls on a Saturday this year, the deadline for filing your tax returns is Monday, April 17th. Residents who send their returns to the I.R.S. office in Boston will have one additional day, because Monday, April 17th is Patriots' Day.

For those who will owe the government, you have two extra days to look for the money. But Ray Hennessey, editor of SmartMoney.com, explains, there are some alternatives if you don't have the cash readily available.

The first alternative for tax payers who owe is to use their credit card to pay the government. But there is a risk.

"You have to be careful because the interest rates on these cards may be very high and you don't want to carry that big balance," warns Hennessey. "But if can and will to pay it off in a month or two, it's an easy, quick way to do it."

The second alternative is to borrow from the IRS.

"Their interest rate is only about seven percent, which is still high," Hennessey explains. "But if you are really stuck, and you make sure you file, you can pay in installments. It's like getting a loan from Uncle Sam."

The third alternative is to file an extension by April 17th. However, when you file an extension, you do have to send in a check with an estimate of how much you think you owe the government.

"As long as you file that extension, you're free and clear to wait a couple of months to [pay]," Hennessey says.

If you have any personal finance questions for Ray Hennessey, please email them to uttm@cbs.com.
by Jenn Eaker