ahmedshahzadawan
Returning Member

Installment plan with efile extension

Where exactly on TurboTax online I can apply for installment plan with  efile for extension? I am not able to find installment option when i select file for extension link under Tools
Rachel_W
Expert Alumni

Get your taxes done using TurboTax

You cannot apply for an installment plan with an extension.  You can apply for an installment plan when you file the actual tax return.  The IRS won't approve an installment plan if your return is on extension and not actually filed.

ahmedshahzadawan
Returning Member

Get your taxes done using TurboTax

during file an extension i put USD 9000 tax due I owe and then pay half amount now and later when file return in October i pay remaining amount. Is that amount subject to interest and penality? pls advise
Rachel_W
Expert Alumni

Get your taxes done using TurboTax

Any balance due when you actually file your return will be subject to interest and penalty.  The interest and penalty is based on your actual tax liability, not the estimate you use on your extension.
ahmedshahzadawan
Returning Member

Get your taxes done using TurboTax

that mean my total actual tax liability is 9000 and in file to extension i pay 4500 so the interest and penalty will be based on remaining 4500 m correct?
Rachel_W
Expert Alumni

Get your taxes done using TurboTax

Not necessarily.  If when you file your return and your balance due is $4,500, then yes.  But if when you actually file your return your balance due turns out to be different, the interest and penalties will be based on that amount.