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L Dietz CPA
L Dietz CPA, Accountant
Category: Tax
Satisfied Customers: 31
Experience:  Tax accountant with 27 years experience.
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I have been unemployed for since October 2010 and have been

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I have been unemployed for since October 2010 and have been receiving weekly unemployment checks pretty regularly. My problem is that I had federal income tax taken out of my checks but live in California and there was no option to have state tax taken out. I also receive money from my ex-husband each month from his years in the armed forces while we were married that is not taxed. When I worked, I had $50 per month taken out of my check to offset this amount but now I am faced with having to pay federal income tax and state income tax on the money I have earned. The checks I get do not begin to meet my monthly basic bills so I have been living off of my savings as well and that has dwindled to very little. Is there any relief I can get at all because I KNOW I will owe to both state and federal. What does someone do that cannot find a job and cannot afford to pay the taxes that will be due? Please help!

L Dietz :

Hello and welcome to Just Answer. I have 20 plus years experience in all areas of US taxation including multi-state and international issues.

L Dietz :

There is a Form 9465 Installment Agreement that you can complete and submit with your tax return if you are unable to pay the full amount of taxes in with your tax return. You can download Form 9465 and its instructions from www.irs.gov. In general, the IRS will accept the plan if: 1) your tax liability is less than $10,000; 2) your repayment term is less than 2 years, and 3) you owe no other taxes. You will still be charged penalties and interest.

Customer:

Is there anything I can do for the state taxes or does this form cover both? I have done this one other time when I owed a lot to federal and it seemed to take FOREVER to pay. Thanks so much.

L Dietz :

Form 9465 is for the IRS only. I am not sure if California has a similar form. When you have income that does not have withholding, you are required to pay in estimated tax payments to both the IRS and the state-California--during the year to avoid not being able to pay with your tax return. You pay the IRS with Form 1040-ES, and you pay California with Form 540-ES. You can downlowd Form 1040-ES from www.irs.gov, and you can download Form 540-ES from the the California Franchise Tax Board (link provided above).

Customer:

Sounds like I have some problems now. Thank you for your help.

L Dietz :

Okay, it looks like California does have an installment agreement explained here. https://www.ftb.ca.gov/online/eia/

L Dietz :

It looks like you can file online or use FTB Form 3567.

L Dietz :

You are welcome. Do you have any other questions about this matter at this time?

Customer:

No other questions but I do appreciate your help. Have a pleasant day!

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