IRS installment agreement subsequent years

[Math_Rocks]

Last year, we owed $2800. This was the first time that we owed and we felt so stupid. Set up an installment agreement for $100 a month, changed our exemptions so more would be taken out and swore we would never be in the same spot again. Guess what? We owe $2200 this year! The Making Work Pay credit went away and DS turned 17 so that accounts for $1800 of the money owed but we are demoralized. And it looks like we cannot ask for another installment agreement because we are still paying on the first one. What can we do? 

If you are following another thread of mine, you know that we are considering bankruptcy for a lot of reasons. If we file, I know the taxes will get rolled in. But, if we don't file, I need to know what we are going to do about taxes. Anyone else out there run into this problem?

[fused]

Moving to General Credit Topics forum.

[Booner72]

Are you sure you can't roll into a new payment??  Back in the early 00's I was owing for a few years in a row and was able to just continue a payment plan. 

So when the kid turns 17, you can't write them off anymore?

[rckstrscott]

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@Math_Rocks wrote:

Last year, we owed $2800. This was the first time that we owed and we felt so stupid. Set up an installment agreement for $100 a month, changed our exemptions so more would be taken out and swore we would never be in the same spot again. Guess what? We owe $2200 this year! The Making Work Pay credit went away and DS turned 17 so that accounts for $1800 of the money owed but we are demoralized. And it looks like we cannot ask for another installment agreement because we are still paying on the first one. What can we do? 

If you are following another thread of mine, you know that we are considering bankruptcy for a lot of reasons. If we file, I know the taxes will get rolled in. But, if we don't file, I need to know what we are going to do about taxes. Anyone else out there run into this problem?

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you can def. roll it into the installment agreement as long as you haven't missed a payment..

you need to consult a tax attorney and I think you need to consider hiring someone to manage your taxes and give you proper advice going forward.. take if from a guy who just sent 11k to the IRS and 3k to Illinios

-scott

[Math_Rocks]

You can still claim a 17 year old as a dependent but there is some credit that goes away when they turn 17.

[Booner72]

Did they put a tax lien on you when you initially owed the 2800?

[Math_Rocks]

No, but we were proactive, filing an installment agreement request with our taxes that year.

[Anonymous]

I hope I will be able to roll into a new installment agreement as well. Honestly in both cases it was lack of foresight on my part and not increasing my withholding, but it's not like we waste money and we're living pretty tight as it is. We have no kids to write off, but the reason we owed in 2011 was not taking into account that we had received a first-time homebuyer's credit which of course was one time only. Next time 'round we got hit for $3,000. But then, we started going to school full time, and that was going to be a big tax break, but ended up dropping courses because work got hectic. Didn't think about changing withholding, and guess what? $3,000 again. Now going back to school full time and sticking with it at all costs, because honestly we can't afford to have withholding increased by $150 / month. In case you're wondering why school doesn't cost, using GI Bill. Just hope we can pull out of this and roll together once. If not, we'll lose the house and the car if they garnish wages.

[GiveJoy]

You should be able to have an installment agreement for many years. We have an installment agreement set up for 2006, 2007, 2008, 2010, and 2011. We have paid off the first three years and are working on the last two now. All the years we owe back taxes are rolled into the same installment agreement so we have been paying $170 month and as our balance gets lower we negotiate a lower monthly payment, so at one point we were paying almost $300 a month towards our back taxes. Also, for our 2012 taxes we got a refund and that was applied to our back taxes instead of coming to us.

I would keep calling and trying until you can get all your back taxes in the same installment agreement.