The IRS website keeps failing to let me set up my payment plan. I began calling the IRS help line the moment it opened, but it keeps saying it’s busy and I should try later. Doesn’t even put me on hold.
Ah - sometimes the system won’t allow you to set it up until after April 15th, apparently. I was under an impression that I’d have to have a payment plan set up by the 15th or incur some additional penalties, but it’s just the case that you begin immediately accruing interest. As long as you’re filed, you’re good. Once you’re on a payment plan you do have to stick to it (I assume by equal payments, maybe you can vary them, we aren’t there yet.)
Thanksfully, I filed and was pretty close to net 0 between owing the state and getting a refund from the feds, which means +/- a 3 digit number. But last year, I owed the fed lots, like you are this year. I thought that the penalties were not very high, but i don’t recall exactly what they were.
My company uses a payroll processer (one of the big ones) and it is really really easy to change withholding online. Like, even I don’t have a problem doing so.
You may avoid the Underpayment of Estimated Tax by Individuals Penalty if:
Your filed tax return shows you owe less than $1,000 or
You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less. If your adjusted gross income (AGI) for 2023 was more than $150,000 ($75,000 if your filing status for 2024 is married filing separately), substitute 110% for 100%.
Got federal return maybe 6 weeks ago. Then got another 1099 for life policy surrender I forgot about. Couldn’t find the amended return online. Got a note from IRS saying no refund, although I was expecting 3K. Today, I got a check for 3K. Very confusing, but I deposited it right away. Wasn’t even direct deposit which original refund was.
not done with mine yet, going to file an extension, 'cause I had a side business for a couple of years that I’m still using to offset some income. it’s complicated enough that I pay a guy a couple of hundred each year to keep some records and know how to massage some of the rules. back-of-the-envelope calculation suggests I may owe about $1k.
The IRS still isn’t recording me as having a balance on their website despite accepting my return, so I’m still not allowed to set up a payment plan. Annoying.
I’ve endured a payment plan several times. The IRS is always very slow, both setting it up and acknowledging payments. It’s probably not going to get better soon.