Can I set up a payment plan for my taxes?

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

How do I set up a payment plan in TurboTax if I haven’t filed yet?

If you haven't filed yet:

Note: If your TurboTax navigation looks different from what’s described here, learn more.

Can I set up an IRS payment plan if I already filed my taxes?

If you have already filed, or you can't find this option in TurboTax, you can apply for a payment plan (Form 9465).

To set up an IRS payment plan after filing your taxes:

Make sure you've filed your return before applying through their site.

Is there a difference between a TurboTax payment plan vs. IRS direct installment agreement?

If you owe between $200 and $6,000, you can apply for a File Now, Pay Later loan in TurboTax. There’s no credit score impact to see if you qualify. Your federal balance due will be paid with your loan, there are no fees or upfront payments required, and you’ll pay your loan back in either 3, 6, or 9 monthly installments.

If you decide not to continue with the File Now, Pay Later loan, don’t qualify, or owe more than $6,000, TurboTax will guide you to the IRS website to set up a payment plan.

See this page for complete qualifications and frequently asked questions about File Now, Pay Later.

How long does it take for the IRS to approve a payment plan submitted via TurboTax on the IRS website?

Once you submit your online application on the IRS website, you'll receive immediate notification whether your payment plan was approved.

If you aren’t eligible to apply for a payment plan online, you can complete Form 9465 and mail in your forms, or apply by phone by calling 800-829-1040. Processing times for mailed applications can take up to 90 days.

Are payment plans only available for federal taxes?

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.

How much will the IRS accept for payment plans?

There's no set amount that the IRS will accept for a payment plan. You can set up a payment plan ranging from below $10,000 to over $50,000, but how you apply for the plan can depend on your balance due.

The IRS offers two payment options based on your balance due and ability to pay. Short-term plans give you up to 180 days to pay balances under $100,000. Long-term installment agreements allow for manageable payment plans over several years for balances under $50,000.

Interest and penalties will accrue until the balance is paid in full for both payment options.

See this article for more info on application qualifications for an IRS payment plan.

Are there fees for setting up a payment plan for your taxes?

If you can pay off your balance within 180 days, it won't cost you anything to set up an installment plan.

If you can't pay off your balance within 180 days, setting up a direct debit payment plan online will cost $22, or $107 if the plan is set up by phone or mail. If you're not using direct debit, then setting up the plan online will cost $69, or $178 if the plan is set up by phone or mail.

If you're a lower-income taxpayer, you may be able to reduce these fees.