Find ways to get help with taxes, including federal and state
There are programs that provide people with help paying taxes, including state and federal income taxes, or addressing past due debt due to the IRS or a state. Most of these are not limited by income, so whether low or high income tax help is offered. Find details below on various programs, organizations and other resources that help with all types of taxes.
Many different types of programs exist. This will depend on what entity is owed the money, but some of the main categories are as follows.
- For assistance with state or federal income taxes, read below. Resources can help with local, state, and federal government obligations.
- Many homeowners need support as well. If you need assistance with paying real estate taxes or getting the amount reduced, we provide some ways to get help with property tax bills.
- Free preparation services are also arranged. Find how government sponsored assistance programs can provide you with free tax returns and answer questions on filing them.
- Millions of Americans that work gig jobs need tax help, including people that work part or full time as rideshare drivers for companies such as Lyft, Uber, or Doordash (and others). There is assistance for them too, and find Rideshare income tax filing help.
Assistance for state and federal government IRS tax debt
Even if the debt due for income taxes is small (less than $10,000), inaction can cost you much more over time due to accumulating penalties, interest, and enforcement actions that the IRS or your state will pursue. However if you owe less than $10K (which will generally be the case for a lower to moderate income household), this is one of the easiest tax situations to resolve yourself, with details below on how to get help with federal or state taxes for lesser dollar amounts due. By doing it yourself (DIY) you’ll save money avoiding unnecessary legal fees or private consultants.
- However, if you owe more than that ($10,000 plus), you should start to consider hiring a tax professional for guidance The point being the more money owed the harder a DIY approach is. These tax professionals (whether an individual or a company) can provide suggestions. Often they work on a contingency basis, so the client is not required to pay the professional unless they save you money. Find what to look for when hiring a tax professional.
IRS Payment Plans and/or Installment Agreements: For individuals who owe federal taxes but cannot pay the full amount upfront, the IRS offers Installment Agreements (as due many states). The goal here to provide the tax-payer some form of help (more time) while also helping the federal government improve their chances to collect the balance. An agreement will allow you to pay off your balance over time - typically monthly.
Note that the IRS needs to agree to this deal. A professional can help someone negotiate the terms and conditions, or the family can off course propose their own agreement. There are two main types of payment plans from the IRS.
- Short-term plans generally are for 120 days or fewer. These are free to set up - no fee, but penalties and interest still accrue.
- Long-term plans are the other option. These are more than 120 days. They also come with a setup fee (note it is often waived for low-income taxpayers. This options will provide flexibility and stop collection actions.
To apply, you can use the IRS’s Online Payment Agreement tool, call the IRS, or submit Form 9465.
State income tax payment plans are offered too. While in concept they are similar to the IRS, the fees, application process and timelines can all vary. Often low-income households get a lower rate or free set up though. Check with your state’s Department of Revenue for details, as each has different terms and thresholds.
Currently Not Collectible (CNC) Status is another form of income tax relief that the IRS offers for federal taxes, which is often an option for people on a limited or fixed income. If you truly cannot afford to pay anything, not even small monthly payments from the agreements listed above, taxpayers can apply to have their account placed in Currently Not Collectible (CNC) status. This status temporarily halts collection activity and protects you from levies, lawsuits or garnishments. While it is free to enter into a CNC, penalties and interest still accrue.
- To qualify for a CNC, you must show that your expenses exceed your income and you have no available assets to liquidate. This will often be the case for those on this website. While this is not a permanent solution, it offers breathing room during financial hardship and can be revisited annually.
Offer in Compromise (OIC) is a form of IRS debt settlement. If you are unable to pay your federal income tax debt in full (whether from a current or past year) and doing so would cause financial hardship, you may qualify for an Offer in Compromise (OIC). This is a settlement or debt forgiveness type program where the IRS agrees to accept less than the full amount owed. In this case, the government will agree to a deal in which the client pays off less than what they owe. This will require that you make a short term or lump sum payment plan to pay off the IRS at a reduced dollar amount
- Eligibility for this income tax settlement option is based on your income, expenses, number of family members, asset equity, and overall financial situation. If the IRS believes it is unlikely they can collect the full amount, they may agree to a reduced settlement. You can check your eligibility using the IRS’s Offer in Compromise Pre-Qualifier Tool online.
Bankruptcy often can get rid of IRS and/or state tax debt - in some cases. Although many people believe IRS debts are never dischargeable in bankruptcy, that’s not entirely true. Under certain conditions, in particular a lower income filer, they can eliminate some federal (and in rare cases, state) income tax debt through bankruptcy. However, the rules are complex and it is not guaranteed to work.
While using a bankruptcy lawyer for consultation is also best (even free legal aid) some of the main conditions in which tax debt can be discharged in bankruptcy include the following. This means any balance due will be completely wiped out.
- The taxes must be federal (or sometimes state) income taxes. Other types of taxes are generally not dischargeable.
- The tax debt must be at least 3 years old and been finalized too. So a recent unpaid federal or state tax bill can't be waived. The tax return must have been due at least three years before you file for bankruptcy (including extensions). If the IRS filed a “substitute return” on your behalf, it usually doesn’t count.
- There must be no fraud on the return or attempt or (or case of tax evasion). If the IRS can prove you willfully tried to avoid paying, the debt is not dischargeable.
Note even if your tax debt isn’t dischargeable, Chapter 13 bankruptcy filing (which many lower income people do anyway) can still be useful. It lets you stretch payments of a state or IRS debt out over years, potentially reduce penalties and interest. In addition it will stop aggressive collection actions like wage garnishments or levies during the repayment period.
Not currently collectible: This is a government program where the IRS will voluntarily agree not to pursue or collect on the tax debt for a period of time. The time-frame for the deal varies, but it can range from a year to much longer. This is an option if you are experiencing serious financial hardships and have no ability to pay your taxes.
Many nonprofit organizations and legal aid clinics offer free or low-cost help with tax issues, including balances that are due. Groups like the Low-Income Taxpayer Clinics (LITCs) offer representation and advice for those facing IRS disputes. These legal resources are effective for low to moderate income households, specially for seniors, veterans, , and people with disabilities. These services may include help with filing, audit support, IRS negotiations and appeals. negotiation and more, and find a free legal aid lawyer in your area.
Free tax return software can help. The government created Volunteer Income Tax Assistance Program (VITA) can help pro-actively catch errors and also offers some audit protections from the IRS. Local community action agencies often administer the resource. It mainly supports senior citizens as well as more lower to moderate income households. Another beneficiary of the program is for immigrants who are filing for the first time
- The VITA Program will offer low and moderate income families free tax help, advice, preparation services and help in completing their annual returns. Click here to learn more on VITA free income tax preparation. The service is generally offered to families and individuals who cannot afford to pay for or prepare their own tax returns.
Correcting/amending a return within 3 years can help stop the IRS too. If you realize after filing your return that you made a mistake, maybe you forgot to include a deduction or included too many deductions, reported too little income, or used the wrong filing status you may be able to fix it before the IRS takes action. This can dramatically reduce or eliminate the amount the IRS believes you owe.
- You generally have three years from the original due date of the return to file an amendment for a refund with the IRS or to correct under reported income. But if your goal is to reduce debt before collection begins, you’ll want to act much faster.
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