First Person: Raising Funds for My Tax Bill

As a self-employed woman, I've come across a common tax problem. Married people file their taxes jointly to save on the family's overall tax bill. But for many women who earn less than their husbands, this means that their income is taxed at a higher bracket than it otherwise would be. This made life difficult for me when I was working hard to get a small home based business off the ground. In the first year I might have received a tax credit since my income was so low; instead, I ended up with a tax bill. There are several ways I deal with tax day payments instead of owing money to the IRS.

Tax Refund

If your husband works for a company that withholds his taxes, you may very well be due for some tax refund. The refund may cancel out your tax bill. In my case, the refund did not wipe my debt but it cut it significantly. Once you do your taxes, you'll be able to see if the refund helped cut your tax bill.

Sell Jewelry

With the price of gold and silver soaring, you can raise money for your tax day payment by selling your jewelry. Though pawn shops will buy your gold and silver, they will typically pay a very low price. Visit a few coin stores or jewelry stores until you find one that offers you the best deal. You may find ads in local newspapers for stores that are looking to buy your jewelry. You can also look for a state mint (as we have here in Washington) which will offer you the best price.

Business Loans for Women

There are several government and non-profit, private programs that offer business loans to women. Small Business Administration Loans, known as SBA's, require that a company profile be presented with the loan application, but in return the loan process and qualifying requirements are simplified. Additional programs from the Women's Funding Network, American Association of University Women and Count-Me-In, each offer their own business loans and support to women entrepreneurs. Learn more about business loans for women.

Credit Card Promotional Rate Loan

If you have empty credit cards, call customer service or visit the account online to see if there are any promotional credit card offers at present. Even with a transaction fee of 3% to 5% a loan at 0% APR for 12 months (as is currently offered by the Discover Card) is a good deal. Though typically such offers are called balance transfers, it is now common practice for the funds to be deposited into your bank account for you to disperse at will.

Peer to Peer Loan

Another way to obtain a loan at reasonable terms is through websites like Peer Lending Network, Lending club or Prosper, which connect lenders with investors. In this case the lenders are not banks but people like you who have money they wish to invest. You can apply online and your loan interest will be determined based on your credit. Typically a 2% service charge is levied by the website, but this is lower than the customary 3% to 5% currently levied by credit card banks.

Personal Bank Loan

It's a good idea to visit your bank and see if you can obtain a personal loan. If you bank with a credit union you're likely to get the best rates and there will be no transaction fee added on. Personal loans, unlike credit card loans, are set to be paid within a fixed number of years, which raises the monthly payments but shortens the term of the loan and the total amount you will have to pay in the end.

Borrow from a 401K

If you or your spouse have a 401K (and if you can't raise your IRS payment any other way), you can borrow from the 401K. The brokerage will sell the different securities that you hold, typically a form of mutual funds. It may also be company stocks that are sold, depending on your plan. The interest on the loan will be high, but you'll be paying the interest to yourself (back into the 401K). For the same reason, your monthly payment will be higher than with credit card loans, and the payment will be automatically deducted from your paycheck.

More from this contributor:
Meet My Tax Doppelganger
Leveraging Credit Card Balance Transfer Offers
7 Credit Card Traps to Watch Out for