Maryland Tax Payment Plan - Tax Group Center

Maryland tax payment planDo you owe taxes in Maryland? It’s important to know that you face serious penalties if you don’t get current with owed state taxes, but you do have some resources available for paying back what you owe as part of a settlement plan. The need to pay state taxes in Maryland is particularly pressing because being late on taxes could impact your ability to get or renew your driver’s license. 

Let’s get all of your questions about a Maryland tax payment plan answered!

Can You Set Up a Payment Plan for Maryland Taxes?

Yes, it’s possible to arrange for a payment plan for taxes in Maryland if you’re having trouble paying the full amount owed. 

Keep in mind that you should still file a return even if you know you cannot pay the full amount that’s due. The state will send you an income tax notice informing you of the remaining balance due. All tax payments in Maryland are handled through the office of the Comptroller of Maryland.

How Do You Set Up a Payment Arrangement?

Do you anticipate needing a Maryland tax payment plan? It’s recommended that you pay as much as possible when you submit your tax return. What’s more, you should also continue to make payments while you wait for your return to be processed. 

The IRS will send a Personal Income Tax Balance Due Notice to you when your return is processed. You have the option to indicate your preferred payment term on that notice before mailing it back using the provided envelope if you’re unable to pay the full balance.

How Do You Apply?

You can apply for a Maryland state tax payment plan by indicating that you need a payment plan when responding to your state tax bill. Most taxpayers will be asked to repay the full balance that is owed within 24 months, but it may be possible to extend a payment plan if you can prove financial hardship.

Who’s Eligible?

Every taxpayer is eligible to set up a payment plan for Maryland taxes. The general qualification is having a state tax liability that is beyond your means at the moment. The Comptroller of Maryland’s office will evaluate your case if you require an extended payment plan.

What Are the Requirements/Conditions?

Short-term repayment plans are relatively easy to obtain in Maryland. 

Longer payment plans are available, but you’ll need to go through a more complicated process to be granted one. The Maryland Comptroller’s office generally looks at factors that impact your ability to pay when evaluating your application for a longer repayment plan. The Collection Information Statement (Form MD 433-A) used during the evaluation process requires you to list details regarding your assets and income. Businesses use a similar form called Form MD 433-B. 

In cases where hardship can be proven, extended payment plans in Maryland can last up to 99 months.

What’s the Process?

You’ll need to indicate that you’re unable to make a payment in full when responding to your state tax bill. The Maryland Comptroller’s office is likely to grant you a 24-month window for a Maryland tax payment plan. If you need more time, you’ll need to complete Form MD 433-A. 

You may be asked to submit a down payment when setting up your Maryland tax payment agreement. In addition, you’ll have the opportunity to set up recurring payments to ensure that a missed payment doesn’t result in the cancellation of your payment plan.

How Can Tax Group Center Help?

You may still have questions regarding how to set up a payment plan for Maryland taxes. Handling the process correctly from the start is the best way to boost the likelihood of being granted a plan, and the team at Tax Group Center helps people solve problems with state taxes every day. Our tax professionals, lawyers, and CPAs can get you on the path to a Maryland tax payment plan, as well as answer your questions regarding things like interest and liens. Reach out today for your consultation!