First off--HI Y'ALL!

Secondly, I input all my numbers into one of those nifty online tax filing websites. Well, it tells me that I owe $218. So do all the other ones. I figured out WHY. What my question is though, how do I pay it? I was told that you only have to file every three years and that I could actually file last year's and this year's taxes next year and the numbers may even out so that I won't owe. I've changed my W4 so that the IRS is now taking more so that I have less of a chance of owing next year.

If you file electronically you can pay by credit card. If you file manually, send a check.

I understand that. I was also told there is a way to make payments. I don't have that kind of money just floating around. Can I file next year?

I suppose I phrased my question wrong, I'm not asking what type of currency to use to pay it. I'm asking can I make payments or can I file next year to balance out owing money? I claimed 3 and for some reason out of $2500 made at that job he took $54 in taxes. I had previously always claimed 3 and never owed. I always got around $400 back. Mind you, I owe money for one month of employment at this place.

I don't know if they will accept payments for such a small amount.

When you are living paycheck to paycheck $200+ is NOT a small amount.

How about filing next year?

I think I will just call a tax professional and ask what to do.

Its not what YOU feel is a small amount, its what the IRS feels is a small amount.

As far as I know, you have to file every year you have earned income. But hopefully one of our tax experts will weigh in here.

Yes the IRS accepts payments. You can get that set up and then make the payments as you go. If your not working with a tax professional you can call or write the IRS to find out how much to send and how long it will last. Here is one such publication with the link in it to set it up.

Payment Options Available for Those Who Can?t Pay in Full

You need to file every year. If you don't pay the taxes you owe by the April deadline, you will have to pay a penalty/interest.
Setting up an installment plan with the IRS costs at least $43 so it's not really worth it for $218 owed (It would be cheaper to pay a penalty).
http://www.irs.gov/individuals/article/0, id=243335,00.html
You have until April to pay the amount owed. Try to pay as much as you can to void the penalty.

Okay. I will have to read that more throoughly. Is there a minimum amount to pay each month or do they work with you? Also, do you know about waiting until next year to file?

Quote:

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Originally Posted by ChihuahuaMomma

Okay. I will have to read that more throoughly. Is there a minimum amount to pay each month or do they work with you? Also, do you know about waiting til next year to file??

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Yes they will work with you but penalties etc still apply. Here is the form.

http://www.irs.gov/pub/irs-pdf/f9465.pdf

Just remember that they have to agree to it before it becomes a contract for payment. They will send you a letter confiming acceptance and then you make your payments from there.

The minimum per month is $25 as far as I know. But you need to take the fee into account. Which in your case is almost 2% of the amount you know.
If you wait to file until next year you have to pay a penalty for late filing and late paying.

Who ever told you that you could file every 3 years lied. You have to file every year.

I meant the fee is almost 25% (not 2%) of the amount you owe.

Actually, only two payments were allowed. $3.95 fee each. And there was no extension needing to be filed or penalties.
Thanks guys.