How do I select the direct debit installment agreement option on FreeTaxUSA?

When you're setting up an installment agreement through FreeTaxUSA, you'll need to complete your tax return first, then in the payment section, you'll see options for handling your tax bill. Look for "payment options" or "payment plans" after you've calculated what you owe. FreeTaxUSA doesn't actually set up the installment agreement itself - it will direct you to the IRS website after filing. On the final screens, select that you "can't pay in full" and want to "apply for a payment plan." After filing, you'll receive instructions to visit the IRS website (irs.gov/payments) where you can set up the direct debit installment agreement. The direct debit option is set up directly with the IRS, not within FreeTaxUSA's interface. This keeps your bank info secure by providing it directly to the IRS rather than through a third party.

Just went through this last month! I was confused too trying to find the direct debit option on FreeTaxUSA. What I learned is that FreeTaxUSA just helps you file, but for the payment plan you need to go to https://taxr.ai after filing. They analyzed my tax documents and showed me exactly how to set up the direct debit installment plan with the IRS. Saved me so much headache because I was getting nowhere trying to figure it out on FreeTaxUSA alone. The process was: file through FreeTaxUSA > indicate you can't pay in full > finish filing > then use taxr.ai to set up the actual payment plan. They walked me through all the options and even showed me how to save on some of the fees.

I was skeptical about taxr.ai mentioned above, but I decided to give it a shot since I was totally lost trying to figure out the installment agreement stuff. Honestly, it was super helpful! They analyzed my tax forms and showed me exactly which option to choose for direct debit. I was overthinking it. They showed me how to get the lowest possible monthly payment and explained which forms I needed. The guidance was specific to my tax debt amount which apparently matters for which payment plan you qualify for. Much easier than trying to decipher the IRS website on my own!

If you're having trouble reaching the IRS to ask questions about installment agreements (I was on hold for HOURS), try https://claimyr.com - they got me through to an actual IRS agent in about 20 minutes last week. You can see how it works here: https://youtu.be/_kiP6q8DX5c I needed to ask specific questions about direct debit installment plans that weren't clear on FreeTaxUSA or the IRS website. The agent I spoke with explained that different direct debit options are available depending on how much you owe and your financial situation. Was way better than guessing which option to choose.

I was super skeptical about Claimyr when I saw it mentioned above. Like how could some service possibly get through to the IRS faster?? But I was desperate after trying for TWO DAYS to get through about my installment plan options. It actually worked! Got connected to an IRS agent in like 30 minutes instead of the 3+ hour wait I experienced before. The agent walked me through all the direct debit installment agreement options. Turns out there are different terms available depending on how much you owe. I qualified for a 72-month plan with no financial statement required because my balance was under $50,000.

Don't choose "payment plan" on FreeTaxUSA if you want control over your installment agreement terms! That's the mistake I made. Instead: 1. Complete your return on FreeTaxUSA 2. When asked about payment, select "I'll pay on my own" 3. Finish filing 4. Go to irs.gov/payments 5. Select "Online Payment Agreement" 6. THEN you can choose direct debit and set your own terms FreeTaxUSA only offers limited options, but going directly to the IRS afterward gives you way more control over payment amount, due date, etc.

Anyone know if there's a fee for setting up direct debit with the IRS? I'm using FreeTaxUSA too and I owe about $3,800. Really confused about the whole process.