IRS Payment Plan Affordability Calculator
Determine if an IRS installment agreement fits your budget.
Affordability Analysis
Disposable Income:$ 1500
Required Payment:$ 528
Affordable:Yes
Payment must be within disposable income and meet IRS minimum.
Payment Plan Recommendation
Plan Type:Streamlined Installment Agreement
Duration:72 months
Setup Fee:$ 31
Low Income:Standard Fee
Guaranteed: debt ≤$10k, 3 years. Streamlined: debt ≤$50k, 6 years.
Cost Breakdown
Principal:$ 25000
Interest:$ 9481
Penalty:$ 3555
Total Paid:$ 38036
Monthly Payment:$ 528
Interest (~8%) and 0.25% failure-to-pay penalty continue during payment plan.
Short-Term Option
Duration:180 days
Payment:$ 4167/mo
Setup Fee:$0
Eligible:Yes
Short-term (180 days) has no setup fee but higher monthly payment.
IRS Minimum Check
IRS Minimum:$ 500
Meets:Yes
IRS requires minimum payment based on debt amount. Failure to meet may reject plan.
Payment Plan Key Points
- Interest (~8%) continues during plan
- Failure-to-pay penalty: 0.25%/mo
- Guaranteed: ≤$10k, 3 years
- Streamlined: ≤$50k, 6 years
- Setup fee: $31 online, $107 phone
- Low income: fee waived
- Short-term: 180 days, no fee
- Apply via IRS Online Payment Agreement
- Miss payments: plan default
- Consider offer in compromise