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No. of Recommendations: 15
We do not have a monthly paycheck but are paid by the job. Our annual income is not preset.

So, you seem to be saying you are self-employed.

How do you recommend we pay this amount?

Well, if I could turn on the time machine, I would have recommended that you set aside 25% - 35% of your 2009 income to make estimated tax payments, and then you wouldn't have this issue. Since I can't turn on the time machine, I would highly recommend that you start doing that right now for your 2010 income, so that you don't run into this issue again.

Please note - if you haven't made estimated tax payments, not only do you owe taxes - you very likely owe penalties and interest. That's just throwing your money away.

If you can't afford to set aside your income in order to make estimated tax payments, then you are living above your means.

Borrow from IRA,life insurance or take a loan? What order is advisable?

Well, you can't borrow from an IRA, so that's out. Whether you should borrow from life insurance, credit cards, or take another type of loan depends on the terms. You also might want to look into a payment plan with the IRS, and see how the terms compare with your other options.

AJ
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