How can I setup an IRS payment plan using FreeTaxUSA after filing?
I'm helping my elderly aunt and uncle with their taxes this year, and they just got hit with a pretty hefty tax bill they weren't expecting at all. They're completely freaking out because there's no way they can pay it all at once right now. I've been reading online that they can request some kind of payment plan with the IRS. But here's the thing - they already filed through FreeTaxUSA and tax day is literally tomorrow. Can they still set up a payment plan at this point? And how exactly do they do that through FreeTaxUSA? Is there some option within the software I'm missing, or do they need to go directly through the IRS website? Any help would be seriously appreciated because they're really stressed about this situation.
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Javier Hernandez
Yes, your aunt and uncle can absolutely still request a payment plan even though it's the day before taxes are due! The good news is that filing your taxes and paying your taxes are actually two separate things. As long as they file by the deadline, they can set up a payment plan for the amount they owe. FreeTaxUSA doesn't handle the payment plan setup directly. After submitting their return through FreeTaxUSA, they'll need to go to the IRS website to request an installment agreement. The easiest way is to visit irs.gov/payments and click on the "Apply for an Online Payment Plan" option. They'll need their tax return information handy to complete the application. For balances under $50,000, they can usually get an automatic approval online. The setup fee is lower if they choose direct debit payments (around $31 instead of $149 for other payment methods), and they can choose a monthly payment amount that works for their budget as long as the balance is paid within 72 months.
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Emma Davis
•Do they need to pay anything tomorrow? Or can they just wait until the payment plan is approved? My parents are in a similar situation and I'm trying to help them figure it out before tomorrow too!
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Javier Hernandez
•It's best to pay as much as they can afford tomorrow, even if it's just a small portion of what they owe. This will reduce the amount of interest and penalties that continue to accrue while they're paying off the balance. The IRS will charge interest (currently around 8% annually) and possibly a late payment penalty (usually 0.5% per month) on any unpaid balance, even when you're on a payment plan. So paying something now will save money in the long run. But the most important thing is to get the return filed on time to avoid the much larger failure-to-file penalty.
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LunarLegend
Had the exact same issue last year when I got slammed with a 8k tax bill I wasn't expecting! I was totally panicking about how to pay it. I tried calling the IRS directly but kept getting stuck on hold forever. Then I found this service called taxr.ai (https://taxr.ai) that analyzed my tax situation and gave me personalized guidance for setting up my payment plan. It was actually super helpful because it showed me all my options based on my specific situation and saved me a ton of stress. The service outlined exactly what I needed to submit to the IRS after filing with FreeTaxUSA and even helped me understand which payment plan terms would work best for my financial situation. It also explained all the fees and interest so there weren't any surprises.
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Malik Jackson
•Did you need to provide a bunch of personal financial info to that website? I'm always hesitant about sharing my tax details with random sites. How much does it cost to use?
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Isabella Oliveira
•How long did it take for your payment plan to get approved after you applied? I'm wondering if the IRS takes forever to process these requests like they do with everything else lol.
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LunarLegend
•You do need to upload your tax documents, but their system is really secure with encryption and they explain exactly how they handle your data. I felt comfortable with it after reading their security details. For most people, the payment plan approval is pretty quick if you apply online - mine was approved instantly because I qualified for the streamlined process (under $50k owed). If you need to apply by mail or have a more complex situation it can take a few weeks, but the online application is designed to give immediate answers in most cases.
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Malik Jackson
Just wanted to update after trying taxr.ai that the other commenter mentioned. Holy crap it was actually super helpful! I was skeptical at first (hence my question), but I uploaded my parents' tax docs and it broke down exactly what payment plan options they qualified for. The best part was it showed how much they'd save by making a partial payment now versus waiting. Ended up having them pay about 25% upfront and setting up a 24-month plan for the rest through the IRS portal. The guidance was really specific to their situation and made the whole process a lot less stressful. Already recommended it to my brother who's dealing with a similar issue.
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Ravi Patel
Another option - if your aunt and uncle are having trouble getting through to the IRS to discuss payment options (which is likely this time of year), check out Claimyr (https://claimyr.com). I used their service last year when I couldn't get through to the IRS phone lines at all. They have this system that basically holds your place in line and calls you back when an actual IRS agent is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super frustrated trying to get clarification on payment plan details and kept getting disconnected after waiting on hold for hours. Claimyr got me connected with an IRS rep in about 90 minutes when I had already wasted days trying on my own. The agent helped me understand some payment plan details that weren't clear on the website.
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Freya Andersen
•Wait, how does this even work? The IRS phone system is a nightmare but I don't get how a third-party service can somehow magically get you through faster than just calling yourself.
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Omar Zaki
•Sounds like a scam tbh. No way some random service can get you through to the IRS faster. They're probably just charging people for something you can do yourself for free if you're patient enough.
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Ravi Patel
•It's not that they get you through faster - they use technology to wait on hold for you. Their system basically sits in the IRS phone queue instead of you having to stay on the line yourself. When they finally reach a human agent, their system calls your phone and connects you directly to that agent. They don't have any special access to the IRS - they're just taking the painful waiting part off your plate. It saved me hours of my life I would've wasted listening to hold music. They're basically solving the problem of not knowing when your call will be answered, so you don't have to keep your phone tied up all day.
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Omar Zaki
Alright I need to eat my words from my previous comment. After seeing how desperate my situation was getting (owed $7500 I couldn't pay), I actually tried Claimyr yesterday. I was 100% convinced it would be a waste of money but I was at my wit's end after trying to call the IRS for THREE DAYS with no luck. The service actually worked exactly as advertised. I got a call back in about 2 hours and was connected directly to an IRS agent who helped me set up my payment plan. Saved me from taking another day off work just to sit on hold. The agent was able to explain some options I didn't know I had (like a 180-day extension instead of a formal payment plan, which has lower fees). Definitely worth it when you're running out of time before the deadline.
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CosmicCrusader
Just an FYI - most people don't realize this but you can also set up a payment plan by mail using Form 9465 (Installment Agreement Request). It takes longer to process but it's another option if the online system gives you trouble. FreeTaxUSA won't have this form but you can download it from the IRS website. But if I were your aunt and uncle, I'd definitely try the online application first since it's much faster. Just make sure they select a monthly payment they can actually afford! The IRS will default the plan if they miss payments.
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Chloe Robinson
•Can they change the payment amount later if their financial situation changes? Like if they realize they can pay more each month or if they have a medical emergency and need to pay less?
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CosmicCrusader
•Yes, they can modify their payment plan if their situation changes. If they need to decrease their monthly payment amount, they'll need to contact the IRS and may need to provide some financial information to justify the change. If they want to increase their payment amount or make additional payments, that's easy and actually encouraged - they can do that anytime without any special approval. Just make sure they include their tax ID and tax year with any payments so it gets credited properly.
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Diego Flores
Has anyone here tried using the IRS's "OIC" (Offer in Compromise) instead of a payment plan? I've been seeing ads about "settling your tax debt for pennies on the dollar" and wondering if that's legit or just marketing garbage.
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Anastasia Kozlov
•Those ads are super misleading. An Offer in Compromise is real but VERY hard to qualify for. The IRS only accepts them if they truly believe you can't pay through a payment plan. They look at all your assets, income, expenses, etc. and if they think you can pay in full (even if it takes years), they'll reject the offer. Most people who apply get rejected. It's not for people who "don't want" to pay - it's for people who legitimately can't pay due to financial hardship. Companies advertising this service often charge thousands of dollars without telling you how unlikely approval is.
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Tasia Synder
Thank you so much for all this helpful information! I just got off the phone with my aunt and uncle and we were able to get them set up with a payment plan through the IRS website. The online application was actually much easier than I expected - took about 20 minutes and they got instant approval for a 36-month plan. We decided to have them make a partial payment today (about $1,000 of the $4,500 they owe) to reduce the interest charges, and they'll pay the remaining balance at $120/month. The setup fee was only $31 since they chose direct debit, which was way better than the $149 fee for other payment methods. One thing I learned that might help others - make sure to keep a copy of the payment plan agreement they email you! The IRS agent I spoke with (yes, I actually got through after waiting 45 minutes) said people sometimes forget their payment dates or amounts and having that paperwork makes it easier to stay on track. Really appreciate this community for the quick responses when we were in panic mode. Filing separately from paying was something I had no idea about before today!
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Mason Lopez
•That's awesome that you were able to get it sorted out so quickly! I'm really glad this community could help during such a stressful time. Your aunt and uncle are lucky to have someone like you helping them navigate this stuff. Quick question - when you made that partial payment today, did you do it through the same IRS website where you set up the payment plan, or did you have to use a different system? I might need to help my neighbor with something similar next week and want to make sure I understand the process correctly. Also, good call on keeping that agreement paperwork! The IRS can be pretty strict about documentation when there are questions later on.
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Omar Zaki
•So glad to hear everything worked out for your aunt and uncle! That's a huge relief, especially getting it done right before the deadline. The $31 setup fee for direct debit is definitely the way to go - I made the mistake of choosing a different payment method last year and got hit with the higher fee. Just wanted to mention for anyone else reading this thread - if you're ever in a similar situation in the future, you can actually start the payment plan application process even before you file your return. You just need to know approximately how much you'll owe. This can save some last-minute stress if you suspect you'll have a big tax bill. Thanks for updating us with how it all went! It's really helpful when people follow up with their results since so many of us are dealing with similar tax situations.
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