Hello, I withdrew money from my 401k last year and I understand that it is taxable. I'm going to owe over $2k. How can I file for extension and set up a payment plan?

I withdrew the money for hardship reasons, which is allowable. How do you set up a payment plan with the IRS?

259

Level 15

Feb 28, 2024 11:45:27 AM

An extension only is for filing the tax return. Any taxes owed are due and payable on 04/15/2024.

Go to this IRS website for an online payment plan application - https://www.irs.gov/payments/online-payment-agreement-application

Expert Alumni

Feb 28, 2024 11:48:52 AM

Filing for an extension does not give you extra time to pay. The clock starts ticking on the amount you owe, the day after tax day.

If you are unable to pay your taxes in full, you should still file by April 15th, but you can click here to apply for a payment plan from the IRS. When you get to the end of TurboTax, prior to hitting file, it will also give you the option to apply for one as well if you prefer to do it with your taxes.

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Hello, I withdrew money from my 401k last year and I understand that it is taxable. I'm going to owe over $2k. How can I file for extension and set up a payment plan?