New Jersey Income Tax Installment Agreements

New Jersey residents may make payment arrangements if they can't pay all their taxes when due.

Taxes and death may be inevitable and in all but a few states, income is taxed at the federal and state level. But, if you can't pay your tax bill when it's due, in New Jersey, you may be eligible to make arrangements for a payment plan.

Deferred Payment Plan

New Jersey offers taxpayers who cannot afford to pay their income tax bill a deferred payment plan. It is similar to the federal counterpart known as an installment agreement.

Requirements

Several guidelines have been established for a New Jersey deferred payment plan. The first is that all tax returns for previous years must be filed. The payment plan may only last 36 months and a minimum payment of $25 a month is required. A taxpayer may also be forced to satisfy set-off programs, such as losing the right to state and federal tax refunds, though other collections efforts are suspended, and the State may file a tax lien against the taxpayer's property.

Form

A taxpayer seeking a deferred payment plan should complete the State of New Jersey Department of the Treasury form DPC-1.

References

• New Jersey Department of Treasury, Division of Taxation: Compliance services forms
• New Jersey Department of Treasury, Division of Taxation: Deferred payment plans guide
• New Jersey Department of Treasury, Division of Taxation: Compliance services