There are options that you can choose to pay what you owe over time so that you won't be financially strapped. The IRS offers an installment plan where you can pay monthly or at your own schedule. Once you file your tax returns for 2020 and 2021, you will not have them hanging over your head and will be able to look forward and be able to resolve this situation. Once you do file, you will know what you owe. It may not be as bad as you are imagining.
Here is a link to the 2020 tax return so that you can file that year. You may have a refund coming to you when you file for that year. Be sure to check if you received the first, second and third economic stimulus payments. The first two can be requested by the 2020 tax return and the third is found in the 2021 tax return.
What if I can't pay?
1. File your taxes by April 18
You are allowed to file your taxes without paying the tax you owe. If you send your tax return on time, you will avoid paying extra for filing late.
2. Pay some of the tax you owe
If you can afford to pay some, send it by April 18. The penalty for not paying your taxes depends on the total tax you owe. If you pay some now, the penalty will be smaller later.
You can make a partial payment with TurboTax. In the File section, select I will mail a check. If you choose to pay with your bank account or credit card, TurboTax will charge the total tax due.
3. Call the IRS and your state tax office
They will work with you to plan how to pay the rest of your tax. If you file your taxes before you call, the IRS might give you extra time or offer an installment plan.
Different ways to apply for an IRS installment plan
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