Maryland PDF Forms
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Outline

In Maryland, the process of ensuring the appropriate amount of state tax is withheld from employees' paychecks is facilitated by the Form MW507, Employee Withholding Exemption Certificate. Tailored specifically for Maryland state government employees, this form plays a vital role in tax administration and compliance. By accurately completing the required sections, employees direct the amount of state income tax withheld from their pay, aligning it with their financial situation and tax liability. The form encompasses an array of options, including declaring total exemptions, choosing additional withholding amounts, and claiming exemption statuses under certain conditions, such as non-residency or earnings below the minimum filing threshold. Notably, the form also accommodates employees domiciled in reciprocal states or those eligible under the Servicemembers Civil Relief Act. The online availability of the corresponding Maryland worksheet aids in the precise calculation of withholdings, ensuring employees can make informed decisions and, when necessary, seek exemptions based on residency or specific legal provisions. Fulfilling this form accurately is critical, as it affects the employee's annual tax responsibilities, potentially affecting refunds or liabilities during the tax season. Moreover, the Personal Exemption Worksheet detailed within the form guides employees through calculating their allowable number of exemptions, providing a foundation for determining their withholding preferences. Each section of this document, from personal information to specific exemption claims, underscores the importance of understanding Maryland's state tax obligations, promoting a culture of proactive tax compliance and informed financial planning among state government employees.

Maryland W4 Sample

Form MW507

Employee Withholding Exemption Certificate

2020

Comptroller or Maryland

FOR MARYLAND STATE GOVERNMENT EMPLOYEES ONLY

 

 

Section 1 – Employee Information (Please complete form in black ink.)

 

 

 

 

 

 

 

 

 

 

 

Payroll System (check one)

 

Name of Employing Agency

 

 

 

 

RG CT

UM

 

 

 

 

 

 

Agency Number

 

 

Social Security Number

Employee Name

 

 

 

 

 

 

 

 

Home Address (number and street or rural route)

 

(apartment number, if any)

 

 

 

 

 

 

 

 

City

 

 

State

Zip Code

County of Residence (required) Nonresidents enter Maryland

 

 

 

 

 

 

 

County or Baltimore City

 

 

 

 

 

 

 

where you are employed

 

 

 

 

 

 

 

Section 2 – Maryland Withholding

Maryland worksheet is available online at https://www.marylandtaxes.gov/forms/20_forms/mw507.pdf

Single

Married (surviving spouse or unmarried Head of Household) Rate

Married, but withhold at Single Rate

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 and check boxes thatapply.

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 the following state.

 

 

Virginia

 

 

 

 

I further certify that I do not maintain a place of abode in Maryland as described in the instructions. 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 Pennsylvania jurisdiction within Yorkor

 

 

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 I meet the

 

 

 

 

 

 

 

 

requirements set forth under the Servicemembers Civil Relief Act, as amended by the Military spouses

 

 

Residency Relief Act. Enter “EXEMPT” here

 

8.

Section 3 – Employee Signature

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.

Employee’s signature

Date

Daytime PhoneNumber

 

 

(In case CPB needs to contact you regarding your MW507)

Employer’s name and address (Employer: Complete name, address & EIN only if sending to IRS)

CentralPayrollBureau

P.O. Box 2396

Annapolis, MD 21404

Federal Employer identification number (EIN)

Important: The information you supply must be complete. This form will replace in total any certificate you previously submitted.

Web Site - https://www.marylandtaxes.gov/statepayroll/payroll-forms.php

⇓ Maryland W4 PDF

File Breakdown

Fact Name Description
Form Purpose The Maryland W4, or Form MW507, serves as an Employee Withholding Exemption Certificate, allowing state employees to specify their income tax withholding preferences.
Governing Law This form is governed by Maryland state law, particularly focusing on state tax withholding requirements for employees.
Applicability It is designed specifically for Maryland state government employees to indicate their withholding allowances or claim exempt status.
Exemption Claims Employees can claim exemptions from withholding due to various reasons such as not expecting to owe Maryland tax based on previous tax year data, being domiciled in another state, or qualifying under the Military Spouses Residency Relief Act.
Online Availability The form and its instructions can be accessed online, offering employees guidance on how to fill out and submit their withholding information.

Steps to Filling Out Maryland W4

After receiving your Maryland W4 form, also known as Form MW507 Employee Withholding Exemption Certificate, you must fill it accurately to ensure the correct state tax is withheld from your wages. This form is vital for Maryland state government employees, as it informs the employer of the employee’s tax status and withholding preferences. Following the steps below will guide you through the process.

  1. Ensure you are using black ink to fill out the form.
  2. Section 1 – Employee Information:
    1. Select your payroll system by checking the appropriate box (RG, CT, UM).
    2. Enter the name of the employing agency and the agency number.
    3. Provide your social security number.
    4. Fill in your name, home address, city, state, zip code, and county of residence. For nonresidents, enter the Maryland County or Baltimore City where you are employed.
  3. Section 2 – Maryland Withholding:
    1. Indicate your marital status by selecting the appropriate withholding rate: Single, Married (surviving spouse or unmarried Head of Household), or Married, but withhold at Single Rate.
    2. Write the total number of exemptions you are claiming, not to exceed the limit indicated on the Personal Exemption Worksheet found on page 2 of the form.
    3. Enter any additional amount you wish to have withheld per pay period under agreement with your employer.
    4. If applicable, claim exemptions from withholding by providing appropriate reasons, such as expecting a full refund due to not owing Maryland tax, being domiciled in another state, or being covered under the Servicemembers Civil Relief Act. Enter "EXEMPT" in the designated spaces.
  4. Section 3 – Employee Signature:
    1. Sign your name to certify the accuracy of the information provided and your entitlement to the claimed exemptions or allowances.
    2. Write the date of signing.
    3. Provide a daytime phone number.
  5. If necessary, fill in your employer’s name, address, and federal employer identification number (EIN) in the designated area.

Once you have completed filling out the form, review all sections to ensure accuracy and completeness. Submit the form to your employer or the designated office as directed. This will ensure that your tax withholdings are processed correctly according to your current status and preferences.

More About Maryland W4

What is the Maryland W4 (MW507) form?

The Maryland W4, also known as Form MW507, is an Employee Withholding Exemption Certificate designed for Maryland state government employees. This document allows workers to specify the amount of income tax to be withheld from their paychecks. By accurately completing this form, employees help ensure that the right amount of state tax is withheld, matching their tax liability as closely as possible.

Who needs to fill out the Maryland W4 form?

All Maryland state government employees are required to complete the Form MW507. Whether you're starting a new job or need to update your withholding allowances due to changes in your personal or financial situation, this form plays a critical role in managing your state income tax withholding.

How can I determine the correct number of exemptions to claim on my Maryland W4 form?

To accurately determine the number of exemptions you should claim, you can use the Personal Exemption Worksheet provided on page 2 of the Form MW507. This worksheet will guide you through calculating the total number of exemptions based on factors such as your filing status, dependents, and other qualifying criteria.

Can I claim exemption from Maryland withholding?

Yes, you may claim exemption from Maryland withholding if you meet specific criteria. For instance, if you did not owe any Maryland income tax last year and received a full refund of all withheld income tax, and you expect the same situation for the current year, you can claim exempt status. This situation is common for seasonal and student employees whose annual income falls below the minimum filing requirement.

What should nonresidents note when filling out the Maryland W4 form?

Nonresidents working in Maryland should pay close attention to Section 1's county of residence requirement and the exemptions available under Sections 3 and 4. If you're domiciled in a state like Virginia or Pennsylvania but don't maintain a residence in Maryland, or if you live in a local Pennsylvania jurisdiction without an earnings or income tax for Maryland residents, you may be eligible to claim exemption from Maryland state or local tax withholding.

Is there a specific section for military spouses?

Yes, Section 8 of the Form MW507 is specifically designed for military spouses. If you're a legal resident of another state and not subject to Maryland withholding due to the protections offered by the Servicemembers Civil Relief Act and the Military Spouses Residency Relief Act, you can claim exempt status in this section.

What happens if I do not submit a Maryland W4 form?

If you do not submit a completed Form MW507, the state of Maryland may end up withholding state income tax at a higher rate. This is because, in the absence of a filled-out form specifying your withholding allowances, the default withholding rate is applied, which might not accurately reflect your tax situation.

Can I adjust my withholding allowances at any time?

Yes, you have the flexibility to adjust your withholding allowances on the Form MW507 at any time. It's recommended to review and update your withholding allowances whenever there's a significant change in your personal or financial circumstances to ensure the correct amount of tax is being withheld.

Where can I find more information or assistance with my Maryland W4 form?

For more detailed guidance or assistance with your Form MW507, you can visit the official website of the Comptroller of Maryland at www.marylandtaxes.gov . Additionally, the website offers access to forms, worksheets, and resources to help accurately complete your withholding certificate.

Common mistakes

When filling out the Maryland W4 form, also known as the Form MW507 Employee Withholding Exemption Certificate, individuals often encounter confusion, leading to a number of common mistakes. Understanding these errors can help ensure that the form is completed accurately, facilitating proper state tax withholding and avoiding unnecessary complications. Here is an expanded list of seven frequent mistakes:

  1. Not updating personal information: Individuals fail to update their personal information such as their home address or name if they have moved or undergone a name change, respectively. This can lead to misplaced tax documents or incorrect tax filings.

  2. Misunderstanding marital status options: The choice between "Married" and "Married, but withhold at Single Rate" often confuses people. Some mistakenly select "Married" when their financial situation might benefit more from the "Married, but withhold at Single Rate" due to higher withholding rates, potentially preventing a tax liability.

  3. Incorrect exemption claims: Employees sometimes incorrectly claim exempt status, either by misunderstanding the requirements or by not meeting both conditions listed for exemption from Maryland state tax.

  4. Overlooking additional withholding: Some employees overlook line 2, where they can request additional withholding per pay period. This might be necessary to cover potential tax liabilities not accounted for by the standard withholding amount.

  5. Failing to claim all eligible exemptions: Often, individuals do not fully understand which exemptions they're eligible for, leading to over-withholding. Thoroughly reviewing the Personal Exemption Worksheet can prevent this issue.

  6. Not consulting the Maryland worksheet: The Maryland worksheet, available online, provides guidance for accurately completing the MW507 but is frequently ignored or overlooked by filers.

  7. Incorrect domicile claims for exemptions: Nonresidents of Maryland who work in the state may claim exemption from Maryland state withholding by declaring their domicile state. However, an incorrect understanding of "domicile" or failing to meet the specific conditions required for such an exemption can lead to improperly filed exemptions.

In addition to these specific mistakes, a general lack of attention to detail can also result in errors throughout the form. To avoid these pitfalls, individuals are encouraged to review each section carefully, consult the available online worksheet for guidance, and consider seeking professional advice if they are unsure of how to accurately complete the form.

Documents used along the form

When it comes to managing taxes and ensuring compliance with state tax regulations in Maryland, the Form MW507, or the Maryland Employee Withholding Exemption Certificate, is just the starting point for employees. This form is pivotal for determining the correct amount of state income tax to withhold from an employee's paycheck. However, to fully navigate the tax landscape, several other documents and forms are often utilized alongside the Form MW507. These serve various purposes, from declaring total income to specifying deductions and credits. Understanding these forms can significantly streamline the process of tax compliance for both employees and employers.

  • Form W-2 (Wage and Tax Statement): This crucial document is provided by employers to employees annually. It details the total wages paid and taxes withheld for the year. For any employee, Form W-2 is fundamental in preparing personal income tax returns, as it accurately reflects earnings and the amount of federal and state taxes withheld, along with contributions to retirement plans and other benefits.
  • Form 1040 (U.S. Individual Income Tax Return): While not specific to Maryland, Form 1040 is the standard federal income tax form used by individuals to report their annual income to the IRS. Residents of Maryland will use the information from Form 1040, along with the state-specific addition, to complete their Maryland state tax returns, ensuring that their tax obligations are met both federally and at the state level.
  • Form 502 (Maryland Resident Income Tax Return): This is the primary state tax return form for Maryland residents. It is used to calculate and report the amount of state income tax due. Information from Form W-2 and Form 1040 helps fill out Form 502, making it a direct complement to the Form MW507 for determining state tax liability.
  • Form 505 (Nonresident Income Tax Return): For individuals who work in Maryland but live in another state, Form 505 is necessary. This form allows nonresidents to compute and pay taxes on the income earned from Maryland sources. Ensuring that these individuals comply with Maryland's state tax laws without being subject to double taxation on the same income.

Together, these forms create a comprehensive framework for managing an individual's income tax responsibilities in the state of Maryland. The integration of federal and state forms, alongside specifics for both residents and non-residents, ensures that the tax process is thorough and accurate for every employee. Understanding and properly utilizing these documents, in conjunction with Form MW507, is essential for maintaining good tax standing and avoiding potential penalties for underpayment or noncompliance. For employers and employees alike, staying informed about these forms is critical for seamless financial operations throughout the tax year.

Similar forms

The Maryland W4 form, officially known as the Form MW507 Employee Withholding Exemption Certificate, shares similarities with several other important tax documents, highlighting the interconnected nature of tax and employment documentation in the United States. Each similar document serves a distinct yet complementary function in ensuring individuals' compliance with tax laws while allowing for a well-informed withholding of income tax.

One document closely related to the Maryland W4 form is the Federal W-4 Form, officially named the Employee's Withholding Certificate. Both forms share the primary purpose of determining the amount of income tax to withhold from an employee's paycheck. They consider personal exemptions, marital status, additional income, and deductible items. However, while the Maryland W4 form applies specifically to state taxes for Maryland employees, the Federal W-4 form pertains to the federal income tax withholding. This distinction means employees often need to complete both forms to ensure correct withholding for both state and federal taxes.

Another document resembling the Maryland W4 is the Virginia VA-4 Form. Similar to the Maryland counterpart, the VA-4 is designed for Virginia state tax withholdings, allowing employees to declare exemptions and determine how much state income tax should be withheld from their paychecks. Both forms require personal information, such as social security numbers, addresses, and marital status, and provide options for claiming exemption from withholding if the employee meets certain criteria. The primary difference lies in their state-specific use, with the VA-4 tailored for the nuances of Virginia's tax laws and the Maryland W4 for Maryland's.

The Certificate of Non-Residence or Allocation of Withholding Tax is another form that parallels the Maryland W4 in intent but differs significantly in specific use. This certificate is used by residents of one state who work in another to declare their non-residency and allocate withholding taxes appropriately based on state reciprocity agreements. Like the Maryland W4, this document helps ensure that employees are taxed correctly according to where they live and work. However, it specifically addresses the tax implications for cross-state employment, which is a situation not directly covered by the standard Maryland W4 form.

Dos and Don'ts

When filling out the Maryland W4 Form, formally known as Form MW507, Employee Withholding Exemption Certificate, it is crucial to follow certain guidelines to ensure the information provided is accurate and compliant with state requirements. Below are lists of things you should and shouldn't do when completing this form.

Things You Should Do:

  • Complete the form using black ink to ensure the information is legible and can be scanned correctly.

  • Verify your county of residence and enter it correctly in the designated area, as this information is required and influences your withholding rate.

  • Refer to the Personal Exemption Worksheet available online to accurately determine the total number of exemptions you are eligible to claim.

  • If applicable, accurately enter the "EXEMPT" status in the sections that apply to you, ensuring you meet the specific criteria for exemption.

  • Provide your signature at the end of Section 3 to certify under penalty of perjury that the information you provided is true and that you are entitled to the number of withholding allowances or exempt status claimed.

  • Review the entire form before submitting to ensure all required fields are completed and the information is accurate.

Things You Shouldn't Do:

  • Do not leave the county of residence section blank, even if you are a nonresident. Nonresidents must enter the Maryland county or Baltimore City where employed.

  • Avoid guessing the number of exemptions to claim; instead, use the Personal Exemption Worksheet to provide an accurate number.

  • Do not claim exempt status without meeting the specific requirements detailed in the instructions for the exemptions.

  • Refrain from signing the form without thoroughly checking that all the information is accurate and complete.

  • Avoid using pens with ink colors other than black, as this may cause issues with scanning and processing the form.

  • Do not submit the form without updating any outdated information, such as a change in name, address, or marital status, to ensure withholding is calculated accurately.

Misconceptions

Understanding the Maryland Form MW507, or the Employee Withholding Exemption Certificate, can sometimes be complicated. Here's a list of common misconceptions that need clarifying:

  • It's only for state government employees: While the form mentions "FOR MARYLAND STATE GOVERNMENT EMPLOYEES ONLY," it's actually used by all employees in Maryland to determine state tax withholding, not exclusively state government employees.

  • Claiming exemption is rare: Many employees believe it's unusual to claim exemption from withholding. However, if you meet certain conditions, like expecting not to owe any Maryland income tax and being entitled to a full refund of all withheld taxes, claiming exemption is your right.

  • Nonresidents can't claim exemption: Nonresidents working in Maryland may claim exemptions under specific conditions, such as living in reciprocal states like Pennsylvania or Virginia, or being protected under the Military Spouses Residency Relief Act.

  • You must withhold at the single rate if unmarried: Married individuals have the option to withhold at a higher single rate, but it's not a requirement. The choice depends on your financial and personal situation.

  • Filling out the form annually is unnecessary: Your financial situation can change yearly. Updating the MW507 form as needed ensures the correct amount is withheld, avoiding unexpected tax bills or penalties.

  • More allowances equal more money taken out of your paycheck: Actually, the more allowances you claim, the less money is withheld from your paycheck. It's essential to claim the correct number of allowances to match your tax liability.

  • The form is too complicated to fill out without a tax professional: The Maryland Comptroller's website provides instructions and resources to help individuals understand and accurately complete the form on their own.

  • You can't file a new form to adjust withholding any time of the year: You have the right to adjust your withholdings at any time. If your financial situation changes, submitting a new MW507 can ensure the right amount is withheld for the remainder of the year.

  • The number of exemptions on the MW507 must match the federal W-4: Each form serves a different purpose, and the information on them can differ based on your specific state and federal tax situations.

Correctly understanding and filling out the Maryland Form MW507 ensures you are withholding the appropriate amount from your paychecks for taxes, potentially avoiding any surprises come tax season.

Key takeaways

Filling out the Maryland W4 form, officially known as Form MW507, Employee Withholding Exemption Certificate, is crucial for state government employees. Here are seven key takeaways to ensure accuracy and compliance:

  • The form serves for Maryland state government employees to indicate their withholding allowances and, if applicable, claim exemption from Maryland state income tax withholding.
  • Completion of the form requires detailed employee information, including Social Security Number, name, home address, and county of residence. For nonresidents, the Maryland county or Baltimore City where employed must be entered.
  • Employees have the option to select their withholding rate status based on their marital status and whether they prefer to withhold at the single rate, even if married. This choice affects the amount withheld from their paycheck.
  • The form allows employees to claim exemptions from Maryland state income tax withholding if they anticipate no Maryland income tax liability for the year. This includes people who did not owe any Maryland income tax in the previous year and received a full refund of withheld taxes.
  • Out-of-state residents, such as those living in Virginia or Pennsylvania, may claim exemption from Maryland withholding if they do not maintain a place of abode in Maryland, following specific criteria outlined in the form instructions.
  • For residents of specific local jurisdictions in Pennsylvania that do not impose an earnings or income tax on Maryland residents, an exemption from Maryland local tax can also be claimed on the form.
  • Service members and their spouses who meet the criteria under the Servicemembers Civil Relief Act and the Military Spouses Residency Relief Act may claim exemption from Maryland state withholding by certifying their legal residency and entitlement to exemption.

It is imperative to accurately complete and submit the Maryland W4 form to ensure the correct amount of state income tax is withheld from one's paycheck, thereby avoiding underpayment or overpayment of taxes. Any changes in employment status, residence, or personal circumstances that could affect tax liability should prompt a review and, if necessary, an update of the form.

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