Fema Employment
Does IRS accept payment plans?
My husband switched jobs this year, and I graduated nursing school so we made about 40000.00 more this year than we did last year. We are looking at having to pay about 2500-3000 dollars in federal income tax. We should be able to come up with it by april, but if we can't is there any way we can split it into payments? Just looking for anyone who has any experience with this. I am also trying to brainstorm deductions and scouring the house for receipts and such. If anybody has any advice on overlooked deductions I would really appreciate it! Thanks so much!
Public Comments
- The IRS does have a payment plan . I know this from past experience, I too was in the same boat and they are more than whiling to work with you.
- When you file, write a check for as much as you can. Send in your return and the IRS will contact you will a payment plan. Remember though you will be charged interest on money owed, so the quicker you pay the less you owe. If you feel you will owe the IRS then you most likely will owe the state extra taxes.
- The IRS offers installment payment plan. You'll have to fill out Form 9465 and there is a setup fee of about $100. You could be better off paying the tax due with a low-interest credit card. As for deductions, you may be qualify for Lifetime Learning Credit. The credit equals 20% of tuition and fees up to $10,000, for a maximum annual credit of $2,000. There's also the student loan interest deduction if you paid any interest on your student loan.
- Two approaches are possible. No matter what, pay as much as you absolutely can by 4/15. Be absolutely sure you file your tax return on time. This will minimize the pain. Then, you can decide if you want a payment plan ($105 set up fee unless you set it up as direct deposit, penalties and interest still apply and you pay monthly) or a 120-day extension to pay (no fee, penalties and interest still apply and all are really doing is telling the computer to lay off for 120 days). If you opt for 120 days, wait for the IRS bill. (Some people know there are 3-4 bills, so they get the first bill, pay as much as they can, get the 2nd bill, pay as much as they can, etc. Only when they get the 3rd bill and can't pay it off do they call....)
- Try your best to pay it by April 15. If you can't, the IRS will grant an additional 120 days to pay. If you need the time, give them a call once you receive your balance due notice.
