I'm in the last stages of filing 2017 taxes. My wife and I have a huge tax bill this year due to a withdrawl from my wife's IRA. $ was used to help us pay cash for our retirement house. We will be using the payment plan option to pay our taxes, but I want to make sure I understand the mechanism using TurboTax before I file. I would like to e-file and pay a portion via check and set up the payment plan. Any insights on the process are helpful.
You can process an e-file payment through TurboTax and select a payment plan with the IRS by selecting the installment payment plan option, click Continue, and follow the onscreen instructions (Wait for the how do you want to pay your federal taxes? screen).
The link below will give you more information about installments:
The IRS will let you pay off your federal tax debt in monthly payments through an installment agreement.
If you already filed, or you're unable to find this option in TurboTax, you can apply for a payment plan at the IRS Payment Plans and Installment Agreements web page (make sure you've filed your return before applying through their site).
State Payment Plans
Most states offer some kind of installment payment plan as well, although the procedure varies from state to state.The easiest way to obtain the info you need is to simply search the internet using the phrase <state> tax payment plan(for example, New Jersey tax payment plan or Illinois tax payment plan). You can also try contacting your state Department of Revenue for details.
Hope this helps!