If you`re a Maryland resident and you`ve fallen behind on your state taxes, you may be interested in setting up an installment agreement to pay off your debt over time. In this article, we`ll take a closer look at the Maryland state taxes installment agreement program and what you need to know before signing up.
What is a Maryland State Taxes Installment Agreement?
A Maryland State Taxes Installment Agreement is an agreement between you and the state of Maryland that allows you to pay off your outstanding tax debt over time. By signing up for the program, you can avoid having your wages or bank account garnished, as well as other more severe collection actions.
How Does the Program Work?
To qualify for the Maryland State Taxes Installment Agreement program, you must have filed all your state tax returns and have a total outstanding balance of less than $25,000. The agreement allows you to make monthly payments to the state that will pay off your debt over a set period (typically three to five years).
Once you sign up for the program, you`ll need to make your monthly payments on time to avoid defaulting on the agreement. If you default, the state can take collection actions against you, including wage garnishments, bank account levies, and other legal actions.
How to Apply for the Maryland State Taxes Installment Agreement Program
To apply for the program, you`ll need to fill out an online application on the Comptroller of Maryland`s website or submit a paper application to the agency`s Collections Division. You`ll need to provide detailed information about your income, expenses, and assets to determine your monthly payment amount.
Before signing up for the program, it`s important to make sure you can afford the monthly payment. If you default on the agreement, the state can take collection actions against you, so it`s important to make sure you have a plan for making your payments on time each month.
Final Thoughts
If you`re struggling to pay your Maryland state taxes, the installment agreement program may be a good option for you. Just be sure to carefully consider your financial situation and make sure you can afford the monthly payment before signing up for the program. With the right plan in place, you can get back on track and avoid severe collection actions.