How to File and Pay Sales Tax in Maryland
Quick Answer: This blog provides instructions on how to file and pay sales tax in Maryland using Form 202. This is the most commonly used form to file and pay sales tax in Maryland. For your own reference, you can click here to view the list of forms that Maryland has displayed on their website related to sales and use tax.
Do You Need to File a Maryland Sales Tax Return?
Once you have an active sales tax permit in Maryland you will need to begin filing sales tax returns. Not sure if you need a permit in Maryland? No problem. Check out our blog, Do You Need to Get a Sales Tax Permit in Maryland?
Also, If you would rather ask someone else to handle your Maryland filings, our team at TaxValet can handle that for you with our Done-for-You Sales Tax Service. We specialize in eliminating the stress and hassle of sales tax.
How to Sign-in and File a Return on Maryland’s Website
Let’s start with simple step-by-step instructions for logging on to the website in order to file and pay your sales tax return in Maryland.
Step 1: Follow this link, https://interactive.marylandtaxes.gov/Business/bFile/OSC/SelectApp.aspx, to come to this screen:
Now click on “Log On” and you will come to a page where you can key in your login info.
Step 2: Sign in with your username and password.
If you do not have a username and password, then your first step is getting that all set up. These login credentials are generally created when you submit registration paperwork for a sales tax permit.
Step 3: You will be directed to the dashboard for the state.
Think of this page as your home base. You can always come back to this page if you get lost.
Take a minute here to explore this page. Notice that your logon name should be displayed near the top of the page. Also notice that you can follow these links to accomplish many tasks. The task that we need to accomplish here today is to file a sales tax return. To continue, select “File Sales And Use Tax Returns”.
Step 4: You will be directed to this page.
Here you need to specify what you wish to do. Assuming you would like to file a new sales tax return, select that option and click “Next”.
You will be shown a screen the allows you to verify both your FEIN number and your Central Registration Number (CRN) number with the state of Maryland. Verify that these are correct, and then proceed by clicking “Next” again.
You will now need to select the period that you need to file from the drop down box. After choosing the correct period, select “Next”.
You will now be presented with Form 202.
These questions have to do with marketplace facilitator laws. Read each of these statements carefully and select the ones that apply to you. If you need some more clarification, you can click the “Help” button off to the side. Once you are sure that you have checked the correct boxes, select “Next”.
Step 5: Key in Sales Data
Data entry for this return is minimal, which is not true for all state sales tax returns. Let’s take a look at the page that you will be using to enter your sales data.
First, let’s enter your gross sales into box 3. Next, enter the taxable portion of the total gross sales in box 4a. Be aware that Maryland is a little different in that they do not ask for an exempt amount. They just ask for the total amount of taxable sales.
Additionally, Maryland displays some red text across all of the data entry screens. This is for good reason. As you can see, lines 4, 5, 6, and 8 do not automatically calculate. This means that you have to calculate the tax due by hand and put that value in box 4 yourself. So take the amount if 4a, multiply it by 0.06, and put that amount in box 4.
Line 9a and 9 should now auto-populate displaying the tax due. Read over all of the rest of the boxes to be sure that you entered all of your sales data accurately. After you are confident everything is entered correctly, select “Next”.
You will now see lines 10-15.
As you can see, lines 10, 11, and 14 auto-populate. Line 10 displays the discount that you will receive for filing the return on time. Line 11 displays the tax due previously, less the discount.
See the red text at the top of this page? Lines 12 and 13 do not automatically calculate. If you had any taxable purchases that you did not pay tax on, enter that data here. After you are sure that all of this data is entered accurately on this page, click “Next”.
You have now made it to the last page of the return.
Take note again of the red text at the top. Also, notice that this is the page where you would include any penalties and interest due if this return is late. Read each line carefully to be sure that you enter all information accurately.
After you are sure that all of the information is correct, just click “Next”. That is all of the data entry for this return. You will now be shown the page where you can remit the sales tax owed to the state of Maryland.
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How to Pay Maryland Sales Tax
After clicking “Next” on the previous page you will come to the page where you can submit payment to MD.
This is where you need to verify your banking account and routing number. Also, be sure to double-check the scheduled payment date. Schedule this date no later than the due date of the return. Nobody likes late fees!
Once you are sure that everything is entered correctly, hit “Next”. Follow the prompts on the screen to finish submitting your Maryland sales tax return.
Things to Consider After Filing a Sales Tax Return in Maryland
If you forgot to print or save a copy of your sales tax return, no need to worry. You can easily go back into the period to view and/or print the return that you just filed. Go back to the dashboard and select the “File Sales and Use Tax Returns” as you did before. Instead of selecting the first option, select “View List of Sales And Use Returns” and click “Next”.
Now you will see a screen that looks like this:
You will need to “View” the return that you wish to print/save. Now scroll all the way to the bottom of the page and select “Print”. You can now print or save the return copy for your records.
How to Get Help Filing a Maryland Sales Tax Return
If you are stuck or have questions, you can contact the state of Maryland directly at (410) 260-7980 between 8:30 a.m. and 4:30 p.m. EST. You can also find additional resources at the Maryland Department of Revenue (DOR) website.
Instead, if you are looking for a team of experts to handle your sales tax returns for you each month, you should check out our Done-for-You Sales Tax Service. Feel free to contact us if you’re interested in becoming a client!
Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.