Maryland Tax Exemption
Maryland Tax Exemption
Maryland Tax Exemption
FORM
MW507
Purpose. Complete Form MW507 so that your employer can withhold the correct
Maryland income tax from your pay. Consider completing a new Form MW507 each
year and when your personal or financial situation changes.
Basic Instructions. Enter on line 1 below, the number of personal exemptions
you will claim on your tax return. However, if you wish to claim more exemptions,
or if your adjusted gross income will be more than $100,000 if you are filing single
or married filing separately ($150,000, if you are filing jointly or as head of household), you must complete the Personal Exemption Worksheet on page 2. Complete
the Personal Exemption Worksheet on page 2 to further adjust your Maryland
withholding based on itemized deductions, and certain other expenses that exceed
your standard deduction and are not being claimed at another job or by your
spouse. However, you may claim fewer (or zero) exemptions.
Additional withholding per pay period under agreement with employer. If
you are not having enough tax withheld, you may ask your employer to withhold
more by entering an additional amount on line 2.
Exemption from withholding. You may be entitled to claim an exemption from
the withholding of Maryland income tax if:
a. Last year you did not owe any Maryland Income tax and had a right to a full
refund of any tax withheld; AND,
b. This year you do not expect to owe any Maryland income tax and expect to
have a right to a full refund of all income tax withheld.
If you are eligible to claim this exemption, complete Line 3 and your employer will
not withhold Maryland income tax from your wages.
Students and Seasonal Employees whose annual income will be below the minimum filing requirements should claim exemption from withholding. This provides
more income throughout the year and avoids the necessity of filing a Maryland
income tax return.
Certification of nonresidence in the State of Maryland. Complete Line 4. This
line is to be completed by residents of the District of Columbia, Virginia or West
Virginia who are employed in Maryland and who do not maintain a place of abode
in Maryland for 183 days or more.
Residents of Pennsylvania who are employed in Maryland and who do not maintain
a place of abode in Maryland for 183 days or more, should complete line 5 to exempt themselves from the state portion of the withholding tax. These employees
are still liable for withholding tax at the rate in effect for the Maryland county in
which they are employed, unless they qualify for an exemption on either line 6 or
line 7. Pennsylvania residents of York and Adams counties may claim an exemption from the local withholding tax by completing line 6. Pennsylvania residents
living in other local jurisdictions which do not impose an earnings or income tax
on Maryland residents may claim an exemption by completing line 7. Employees
qualifying for exemption under 6 or 7, should also write EXEMPT on line 4.
Line 4 is NOT to be used by residents of other states who are working in Maryland,
because such persons are liable for Maryland income tax and withholding from
FORM
MW507
Print full name
County of residence (Nonresidents enter Maryland county (or Baltimore City) where you are employed.)
Single
1. Total number of exemptions you are claiming not to exceed line f in Personal Exemption Worksheet on page 2. . . . . . . . . . . . . . . . . . . . . . 1.__________________
2. Additional withholding per pay period under agreement with employer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.__________________
3. I claim exemption from withholding because I do not expect to owe Maryland tax. See instructions above and check boxes that apply.
a. Last year I did not owe any Maryland Income tax and had a right to a full refund of all Income tax withheld and
b. This year I do not expect to owe any Maryland income tax and expect to have the right to a full refund of all income tax withheld.
(This includes seasonal and student employees whose annual income will be below the minimum filing requirements).
If both a and b apply, enter year applicable _____________ (year effective) Enter EXEMPT here . . . . . . . . . . . . . . . . . . . . . . . . 3.__________________
4. I claim exemption from withholding because I am domiciled in one of the following states. Check state that applies.
District of Columbia
Virginia
West Virginia
I further certify that I do not maintain a place of abode in Maryland as described in the instructions above. Enter EXEMPT here. . . . . . . . . 4.__________________
5. I claim exemption from Maryland state withholding because I am domiciled in the Commonwealth of Pennsylvania and I do not
maintain a place of abode in Maryland as described in the instructions on Form MW507. Enter EXEMPT here.. . . . . . . . . . . . . . . . . . . . . . 5.__________________
6. I claim exemption from Maryland local tax because I live in a local Pennysylvania jurisdiction within York or Adams counties.
Enter EXEMPT here and on line 4 of Form MW507.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.__________________
7. I claim exemption from Maryland local tax because I live in a local Pennsylvania jurisdiction that does not impose an earnings or income
tax on Maryland residents. Enter EXEMPT here and on line 4 of Form MW507. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.__________________
8. I certify that I am a legal resident of the state of ____________ and am not subject to Maryland withholding because l meet the requirements set forth under the Servicemembers Civil Relief Act, as amended by the Military Spouses Residency Relief Act. Enter EXEMPT here.. 8.__________________
Under the penalty of perjury, I further certify that I am entitled to the number of withholding allowances claimed on line 1 above, or if claiming exemption from withholding,
that I am entitled to claim the exempt status on whichever line(s) I completed.
Employees signature
Date
Employers name and address including ZIP code (For employer use only)
COM/RAD-036 13-49
page 2
MARYLAND
FORM
MW507
Personal Exemptions Worksheet
Line 1
a. Multiply the number of your personal exemptions by the value of each exemption from the table below.
(Generally the value of your exemption will be $3,200; however, if your federal adjusted gross income is
expected to be over $100,000, the value of your exemption may be reduced. Do not claim any personal
exemptions you currently claim at another job, or any exemptions being claimed by your spouse.
To qualify as your dependent, you must be entitled to an exemption for the dependent on your federal
income tax return for the corresponding tax year. NOTE: Dependent taxpayers may not claim themselves as
an exemption.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. ______________
b. Multiply the number of additional exemptions you are claiming for dependents 65 years old or older by the
value of each exemption from the table below. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. ______________
c. Enter the estimated amount of your itemized deductions (excluding state and local income taxes) that
exceed the amount of your standard deduction, alimony payments, allowable childcare expenses, qualified
retirement contributions, business losses and employee business expenses for the year. Do not claim any
additional amounts you currently claim at another job or any amounts being claimed by your spouse.
NOTE: Standard deduction allowance is 15% of Maryland adjusted gross income with a minimum of $1,500
and a maximum of $2,000.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. ______________
d. Enter $1,000 for additional exemptions for taxpayer and/or spouse at least 65 years old and/or blind. . . . . . d. ______________
e. Add total of lines a through d.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e. ______________
f. Divide the amount on line e by $3,200. Drop any fraction. Do not round up. This is the maximum
number of exemptions you may claim for withholding tax purposes. ................... . . . . . . . . . . . . . . . . . . . f. ______________
$100,000 or less
$3,200
$3,200
Over
$100,000
$125,000
$1,600
$3,200
$125,000
$150,000
$800
$3,200
$150,000
$175,000
$0
$1,600
$175,000
$200,000
$0
$800
$0
$0
In excess of $200,000