Form MW507, Employee's Maryland Withholding Exemption Certificate (2024)

Form MW507, Employee's Maryland Withholding Exemption Certificate (2024), is the Comptroller of Maryland form an employee completes so that the employer can withhold the correct amount of Maryland income tax from the employee's pay.

The form works in two ways. On line 1 you enter the number of personal exemptions you claim, and on line 2 you can ask your employer, by agreement, to withhold an additional amount each pay period. Alternatively, you can claim exemption from withholding on lines 3 through 8: for no expected Maryland tax (line 3), for domicile in the District of Columbia, Virginia or West Virginia (line 4), for domicile in Pennsylvania (lines 5 to 7), or under the Servicemembers Civil Relief Act, as amended by the Military Spouses Residency Relief Act (line 8).

Page 2 holds the Personal Exemptions Worksheet, which caps the number of exemptions you may enter on line 1. You may claim fewer exemptions than the worksheet allows, or none.

The employer keeps the signed certificate and, in the situations listed in the form, sends a copy to the Comptroller's Compliance Division. Military spouses claiming exemption on line 8 also complete and attach Form MW507M.

Employees who work in Maryland and want their employer to withhold Maryland income tax at the right level complete Form MW507. The form suggests completing a new one each year and whenever your personal or financial situation changes.

Groups the instructions address:

• Employees claiming exemptions on line 1. If you want more exemptions than the basic number, or your adjusted gross income will be above the printed thresholds for your filing status, you must complete the Personal Exemption Worksheet on page 2. You may claim fewer exemptions, or zero.
• Employees with no expected Maryland tax (line 3). This requires that you owed no Maryland income tax last year and expect to owe none this year, with a right to a full refund of tax withheld both times. The form says students and seasonal employees with annual income below the minimum filing requirements should claim it.
• Residents of the District of Columbia, Virginia or West Virginia (line 4) who do not maintain a place of abode in Maryland for 183 days or more.
• Pennsylvania residents (lines 5 to 7) with the same 183-day condition.
• Military spouses (line 8) who meet the three conditions printed in the instructions.

Do not use line 4 if you live in another state and work in Maryland: such employees are liable for Maryland income tax and withholding. Employees domiciled in the District of Columbia, Pennsylvania or Virginia who keep a place of abode in Maryland for 183 days or more become statutory residents and must file a resident return.

Give Form MW507 to your employer when you need your Maryland withholding set or changed. The form suggests completing a new one each year and when your personal or financial situation changes.

Two timing rules appear in the instructions. If, on any day of the calendar year, the number of exemptions you are entitled to claim falls below the number on the certificate in effect, you must file a new certificate with your employer within 10 days after the change. If you claim exemption from withholding because you had no tax liability for the preceding year and expect none this year, a new certificate must be filed by February 15th of the following year.

Once an employer sends a certificate to the Compliance Division, the Division makes a determination and notifies the employer if a change is required.

Give the signed Form MW507 to your employer; the employer retains it with its records. The form lists no portal or mailing address for employees.

Employers must send a copy of the certificate and its attachments to the Comptroller when received if any of these apply:

• the employer has reason to believe the certificate is incorrect;
• the employee claims more than 10 exemptions;
• the employee claims exemption because of no tax liability last year and none expected this year, and wages are expected to exceed the weekly figure printed on the form;
• the employee claims exemption based on nonresidence;
• the employee claims exemption under the Military Spouses Residency Relief Act.

The address is: Compliance Division, Compliance Programs Section, 301 West Preston Street, Baltimore, MD 21201. After the Comptroller revokes a certificate, the employer must send any new certificate from that employee to the Comptroller for approval before using it.

Attach a copy of your spousal military identification card and Form MW507M if you claim exemption on line 8. FillingPDF lets you fill out and download the PDF; submission follows the channels above.