My previous employer did not take out any Maryland state tax for 2018 and I just realized too late. Does this mean that I will need to pay it all in one go when I file my tax return? Is there any payment plan options? If so, where should I go and who should I contact?
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if you had a MD tax liability for 2017, you may be subject to penalties for underpayment of estimated taxes. in addition since you appear to not have paid the taxes owed by 4/15/2019, you may also be subject to penalties and interest for late payment. yes you probably can go on a payment plan but for one thing you have in your pocket (or bank account) the taxes your employer failed to withhold. the longer you string out payments the more penalties and interest you will pay and they are not tax deductible. file as soon as possible and make the biggest payment you can to keep down the penalties and interest.
for 2019, check you pay stubs to make sure state withholding is taken out unless you don't mind paying penalties and interest.
Here is a link to the MD website; it says if you cannot pay all of your state tax due when you file, you should pay as much as possible and then they will bill you for the balance and perhaps set up a payment plan.
https://taxes.marylandtaxes.gov/Individual_Taxes/General_Information/Payment_Methods/
Hi, thank you very much for your reply.
Also, do you know how I can check or calculate how much I actually owe? Do you think I should see a tax expert for this?
See the MD tax rates at:
You don't need to see a tax pro. It's straight forward: you pay what you can and the state contacts you for the rest. See: https://interactive.marylandtaxes.gov/individuals/payagr/
if you had a MD tax liability for 2017, you may be subject to penalties for underpayment of estimated taxes. in addition since you appear to not have paid the taxes owed by 4/15/2019, you may also be subject to penalties and interest for late payment. yes you probably can go on a payment plan but for one thing you have in your pocket (or bank account) the taxes your employer failed to withhold. the longer you string out payments the more penalties and interest you will pay and they are not tax deductible. file as soon as possible and make the biggest payment you can to keep down the penalties and interest.
for 2019, check you pay stubs to make sure state withholding is taken out unless you don't mind paying penalties and interest.
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