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Would I be able to split what I owe into 2 payments

I owe $525. I need to split into 2 payments
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2 Replies
SabrinaD2
Expert Alumni

Would I be able to split what I owe into 2 payments

The IRS will let you pay off your federal tax debt in monthly payments through an installment agreement.

 

  1. If you haven't filed yet, go to File, and on the How do you want to pay your federal taxes? screen, select Request an IRS payment plan.
  2. If you already filed, or you can't find this option in TurboTax, you can apply for a payment plan (Form 9465) at the IRS Payment Plans and Installment Agreements website. Make sure you've filed your return before applying through their site.

Most states offer an installment payment plan as well, although the procedure varies from state to state. You can contact your state Department of Revenue for details.

Would I be able to split what I owe into 2 payments

If you can pay in less than 6 months, asking for an installment plan is kind of pointless.  You pay the same interest and penalties for late payment as if you just paid late and waited for a bill for interest.  Also, requesting a payment plan in Turbotax may result in a non-refundable application fee that you would avoid by applying directly on the IRS web site.

 

In Turbotax, select that you will "pay by mail".  This way, Turbotax will not make an automatic payment for you.  Then, go to www.irs.gov/payments and make the payment you desire.  When you have the rest of the funds, make the other payment.  You may be charged about 1% per month combined interest and penalties on the amount not paid by April 15. 

 

If you can't pay in 6 months, you can request an installment plan online.  You will still pay interest on the unpaid balance, but the penalty for late payment is reduced. 

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