I owe the IRS 10K...wow!

[sudofdisk]

What is the name of your state (only U.S. law)? Colorado

It is a long story but due to separation from my wife, losing her and her 5 children from a previous marriage as dependents, a substantial raise and two nice bonuses I now owe the IRS just over 10k for last year.

Obviously I am changing my withholding and I will have to pay them the money, I assume with interest and penalties, but I have always received a refund in the past and so I have no idea what is in store for me. Between child support alimony and my own living expenses I was already on a budget, taking home less pay each month is going to be difficult but doable. But that isn't going to leave much for me to work with when it comes to paying back the Feds.

My plan now is to file and talk to them about setting up a payment plan, but was coming here in case there is something I can do to help myself out. I am not looking to get out of paying just something to ease the pain or a game plan of how I should handle the situation.


Thanks!

 

[TinkerBelleLuvr]

When setting up a payment plan, make sure that it is realistic. And yes, you might have to cut out some "nice to have's" in your life. I believe the most they'll let you stretch it out is 3 years.

 

[irsos]

What is the name of your state (only U.S. law)? Colorado

It is a long story but due to separation from my wife, losing her and her 5 children from a previous marriage as dependents, a substantial raise and two nice bonuses I now owe the IRS just over 10k for last year.

Obviously I am changing my withholding and I will have to pay them the money, I assume with interest and penalties, but I have always received a refund in the past and so I have no idea what is in store for me. Between child support alimony and my own living expenses I was already on a budget, taking home less pay each month is going to be difficult but doable. But that isn't going to leave much for me to work with when it comes to paying back the Feds.

My plan now is to file and talk to them about setting up a payment plan, but was coming here in case there is something I can do to help myself out. I am not looking to get out of paying just something to ease the pain or a game plan of how I should handle the situation.


Thanks!

File your return, paying what you can. Include Form 9465 to request an installment agreement IF you can make payments of about $200 per month or more. If you cannot make payments in that amount, you will need to wait until you get your first bill. You can then call them to setup an agreement. Be cautioned however, they will be wanting some detailed information related to your income and living expenses. Go to: Installment Agreements for more information.

 

[LdiJ]

What is the name of your state (only U.S. law)? Colorado

It is a long story but due to separation from my wife, losing her and her 5 children from a previous marriage as dependents, a substantial raise and two nice bonuses I now owe the IRS just over 10k for last year.

Obviously I am changing my withholding and I will have to pay them the money, I assume with interest and penalties, but I have always received a refund in the past and so I have no idea what is in store for me. Between child support alimony and my own living expenses I was already on a budget, taking home less pay each month is going to be difficult but doable. But that isn't going to leave much for me to work with when it comes to paying back the Feds.

My plan now is to file and talk to them about setting up a payment plan, but was coming here in case there is something I can do to help myself out. I am not looking to get out of paying just something to ease the pain or a game plan of how I should handle the situation.


Thanks!

You got good answers from the others, however if you are paying court ordered alimony(or an agreement including alimony that was signed off on by the judge) you do realize that alimony is tax deductible to you and taxable income to your ex?