The best part of tax season is planning how to spend your tax refund, but when a bill comes instead of a check many Americans grapple with how to pay the taxes they owe.

This year more than a quarter of taxpayers will owe money to the Internal Revenue Service and will have to take on debt to pay their tax bill, according to a Jan. 2024 Intuit Credit Karma survey.

After the tax filing deadline on Monday, April 15, the IRS will start assessing interest and penalties for millions of Americans, shortly after you will know if you are receiving money back or owing the government.

Because a tax bill can bleed your bank account dry, put you in debt and feel overwhelming, Reckon broke down a few ways for taxpayers to tackle their payments this tax season.

Do I have to pay the whole tax bill now?

While paying the entire bill at once will help eliminate the interest, there are options for taxpayers who can’t afford to take care of the full amount at the due date.

According to the IRS, taxpayers can apply for either a short-term and long-term payment plan to pay off their tax bill.

The short-term payment plan opens a window of 180 days or less for people to pay on a balance of $100,000 or less in combined tax, penalties and interest. The long-term payment plan provides taxpayers with the ability to pay on their bills longer than 180 days with an amount of $50,000 or less in combined tax, penalties and interest.

Those who file their taxes late and owe the IRS may be charged a failure-to-file penalty. The penalty is 5% of the tax owed for each month it is late.

Can I pay my taxes with my credit card?

For taxpayers who want to pay their bills with a credit card, the IRS accepts MasterCard, American Express, Visa or Discover cards.

Because the IRS only accepted about a third of short and long-term payment plans in 2022, many taxpayers lean on their credit cards to cover the bill. While this provides the taxpayer with more flexibility, the IRS will add a processing fee for all credit card payments.

Based on the type of tax bill and credit card payment method, there is a maximum number of credit card payments allowed, according to the IRS.

Can I pay my tax bill with a personal loan?

Many taxpayers choose to take out a personal loan to cover their tax bill, especially if they are strapped for cash and time.

The IRS’s short or long-term payment plan often offers quicker and unmanageable financing options, while a personal loan provides taxpayers with the flexibility to make payments on a longer timeline, lower interest rates for borrowers with good credit and ask for zero collateral.

Regardless of how a taxpayer intends to tackle their bill this season, they shouldn’t ignore the IRS’s attempts to collect the taxes owed. If an arrangement or payment plan isn’t solidified the IRS can garnish your wages, levy your bank account or issue a federal tax lien.