Are you struggling to pay your New Jersey taxes in full? It’s important to know that you do have options for paying back what you owe over time using a NJ tax payment plan. It’s also important to understand what being approved for a payment plan does and doesn’t mean for any penalties or interest you’ve accrued. Learn about the tax payment plan New Jersey taxpayers can use to pay off their tax debts.
Can You Make Payments on New Jersey State Taxes?
Yes, New Jersey offers the option to make payments using plans that go up to 72 months. All plans are subject to approval from New Jersey’s Division of Taxation. Additionally, you may be able to defer tax payments or apply for hardship relief under certain conditions.
Can You Pay New Jersey State Taxes in Installments?
Yes, you can use a state of New Jersey tax payment plan to pay off taxes in installments. Your plan must include all unpaid tax balances. New Jersey’s Division of Taxation requires taxpayers to make monthly payments totaling at least $25.
What Are the Conditions of the New Jersey Tax Payment Plan?
Under a state of New Jersey tax payment plan, taxpayers have up to 72 months to pay off all unpaid balances. The Division of Taxation will continue to apply interest to your unpaid balance throughout the duration of your state of New Jersey tax payment plan. New Jersey also has something called a set-off program for taxpayers with tax installment agreements. The state can actually apply things like your tax refunds, property tax relief, or government benefits to your debt balance without asking your permission. This is one of the reasons why it is essential that you seek help for tax debt relief in New Jersey from a professional if you’re concerned that your unpaid taxes could leave you vulnerable to this stipulation.
Who’s Eligible for a New Jersey State Tax Payment Plan?
New Jersey provides tax installment agreements for both personal income tax and business taxes. All of your tax returns must be filed up through the date of your application. In general, New Jersey requires a taxpayer to owe $500 or more in state taxes to qualify for a payment plan.
What Is the Process for Arranging a Tax Payment Plan in New Jersey?
All payment plans must be approved by the Division of Taxation. Individuals must use something called the Payment Plan Request Form for Individual Income Taxes. When applying for a payment plan as a business, it’s necessary to file a form called the Responsible Person Acknowledgement and Judgment Authorization.
How Can Tax Group Center Help?
The reality is that the stakes can be high when you owe unpaid taxes in New Jersey. A taxpayer with an unpaid tax bill is subject to something called a Certificate of Debt (COD). This is New Jersey’s means for activating the collection process against you. Once initiated, a COD acts as a warrant that allows local authorities to conduct levy and lien enforcement. You could have your wages garnished if you fail to pay taxes on time without setting up a payment plan. New Jersey is also one of the states where failing to pay taxes could cause you to have your license or motor vehicle registration suspended. Tax Group Center is here to help you avoid the harsh penalties and headaches that could be fixed with intervention. We’ll help you through the process of applying for and setting up a NJ tax payment plan. Our team of tax professionals, accountants, and lawyers has been helping people take care of state tax problems for 30 years. Give us a call today to book a consultation to discuss a New Jersey state income tax payment plan.