Money from an inheritance, a gift, that freelance job you forgot about, or the sale of investment assets like stocks or cryptocurrency can feel like a nice bonus during the year, but nearly all sources of income are taxable—and they are reported to the IRS. 

Sure, everyone should try to keep on top of tax planning as part of their budgeting process, but earning extra income or receiving an unexpected windfall can make it challenging to correctly estimate your tab with the IRS. 

“You don’t have the option of calling the IRS up and crying poverty because they can figure out you have a house, you have securities, so you have to pay your taxes,” says Edward McCaffery, professor of law, economics, and political science at the University of Southern California’s Gould School of Law. 

It’s not uncommon for people to get a higher-than-expected tax bill, but financially mindful individuals have plenty of ways to cope. If you’ve been taken by surprise, here are things to watch out for as you mitigate your misfortune.

3 ways to pay for an unexpected tax bill

Discovering at the last minute that you owe additional taxes can be frustrating, but Jonathan Kessler, executive vice president and head of credit & cash management solutions at PNC Private Bank, suggests that you stop procrastinating and find the funds sooner rather than later. 

“You always know you’re going to have to pay taxes,” says Kessler. “Other than death, that’s the one certainty in life.” 

Kessler advises that you’ve got three options: pay with cash, liquidate investments, or use credit. We would add that anyone with complicated situations should work with a licensed tax professional to ensure all calculations and filings are accurate and submitted on time.

Pay with cash

If you have cash savings available, paying the IRS directly is the quickest and easiest strategy. Kessler says using cash reserves is not necessarily a bad idea, but it could drain your emergency fund or the money you count on for expenses—or might even be better deployed for unexpected business or investment opportunities. 

“It’s fine to use your cash to pay your tax bill, but you certainly want to maintain flexibility for other unexpected things or opportunities that come along,” he adds.

Liquate investments

Liquidating investment assets is another strategy for paying your additional taxes—although the sale of Bitcoin or stock could be why you owe additional taxes to the IRS in the first place. And that’s why you keep in mind the tax implications of liquidating investment assets to pay an impending tax bill. 

“Selling securities, well, that’s certainly an option,” says Kessler. “However, when you sell appreciated stock, guess what? You’re going to create another tax bill for next year.”

Even if this option means higher taxes next year, it also presents a great time to analyze your investment strategy. Look and see if you can sell off losing investments to avoid capital gains tax next year—and rebalance your portfolio while you’re at it. 

Read more from Fortune

Borrow money

Using a credit card is not a good option. However, opening a line of credit secured by an investment portfolio is an option for well-heeled individuals. It can save you from selling investment assets at inopportune market moments—or ending up with a capital gains tax bill next year.

“If you’re rich enough to borrow, you’re avoiding the need to pay taxes on the cash you use to live off of and assets that are growing at a faster rate than your debt is accruing,” says McCaffery.

With this kind of line of credit, interest is only paid on the amount drawn, much like a home equity line of credit (HELOC). Kessler warns that borrowing money from a line of credit is not always simple, although done right it can be financially beneficial. 

If your investments grow at a faster rate than the interest you’re charged, this strategy can be very appealing. But it also requires more attention from borrowers, as market volatility could mean adding collateral to back your line of credit. 

Before agreeing to any line of credit, talk with a financial professional about the potential benefits and risks, including how much control over your investments you might be handing over to a lender.

The takeaway

When it comes to paying taxes or accounting for other unexpected expenses, there is no one-size-fits-all solution. The method that makes sense financially for you one year could not be so smart the next.

If you have investment losses to harvest as tax benefits, this could be the perfect application. But it’s always worth considering whether recovery is in the cards for your portfolio, making a securities line of credit more promising. 

McCaffery coined the term “buy, borrow, die,” a concept that describes how the wealthy use the tax system to their advantage. He advises taxpayers to educate themselves on smarter financial strategies to cope with things like a higher-than-expected tax bill.  

Above all, consider talking to a professional for ongoing tax assistance. That can help you avoid unexpected expenses that disrupt your financial well-being in the first place.

More on personal finance:

• Americans trust AI more than a CPA to do their taxes, according to new research
• Why are mortgage rates still so high? There’s something more important than Fed policy at work
• Your tax refund could be in danger thanks to the ongoing shortage of accountants