The Penalties and Interest section is used to enter certain Maryland penalties or interest charges that apply to your return. Most taxpayers will not need to complete this section unless they have received a notice from the Maryland Comptroller or are subject to a specific Maryland penalty.
Program Entry
To access this section, navigate to:
Maryland → Penalties and Interest
Interest for Late Filing
Use this field to enter any interest charged as a result of filing or paying Maryland tax after the due date.
Interest may apply when:
- A tax return is filed after the due date.
- Tax owed is paid after the due date.
- Additional tax is assessed by Maryland after the return is filed.
- An amended return results in additional tax due.
What Amount Should Be Entered?
Enter the amount of interest assessed by the Maryland Comptroller or otherwise calculated according to Maryland requirements.
⚠️ Do not estimate interest unless instructed to do so. Refer to any notice received from Maryland or the applicable Maryland filing instructions.
Penalty for Withdrawal of Funds from a First-Time Homebuyer Savings Account for an Ineligible Purpose
Maryland provides tax benefits for qualifying contributions to a First-Time Homebuyer Savings Account. However, if funds are withdrawn and used for a nonqualified purpose, a penalty may apply.
When Might This Penalty Apply?
A penalty may be required if:
- Funds were withdrawn from a Maryland First-Time Homebuyer Savings Account.
- The withdrawal was not used for a qualified first-time home purchase or another eligible purpose under Maryland law.
- The taxpayer previously received a Maryland tax benefit related to the account.
What Amount Should Be Entered?
Enter the penalty amount attributable to nonqualified withdrawals from the First-Time Homebuyer Savings Account.
Supporting documentation should be retained with your tax records.
Who Typically Uses This Section?
Most taxpayers will leave these fields blank.
This section is generally completed only by taxpayers who:
- Owe Maryland interest for late filing or late payment.
- Made a nonqualified withdrawal from a Maryland First-Time Homebuyer Savings Account.
- Have received instructions from Maryland to report a specific penalty or interest amount.
Important Notes
- Interest and penalties are separate charges and should be entered in the appropriate fields.
- Do not enter Maryland withholding or estimated tax payments in this section.
- Keep copies of any Maryland notices related to interest or penalties.
- Incorrect entries may affect your balance due or refund calculation.
- Most Maryland taxpayers will not have entries in this section.
For more information or the Maryland Unpaid Tax Interest Calculator please click here.