INSTRUCTIONS & WORKSHEET FOR COMPLETING …
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(is supersedes all previous editions) Effective 1/1/12 INSTRUCTIONS & WORKSHEET FOR COMPLETING WITHHOLDING FORMS FOR MARYLAND STATE EMPLOYEES e law requires that you complete an Employee’s Withholding Allowance Certificate so that your employer,the state of Maryland,can withhold federal and state income tax from your pay. Your current certificate remains in effect until you change it. If you have previously filed as “EXEMPT” from federal or state withholding, you must file a new certificate annually by February 15 of each year. Complete the Employee’s Withholding Allowance Certificate as follows: Section 1 - Employee Information - Please check type of Payroll - Regular (RG), Contract (CT), or University of Maryland (UM) - Name of Employing Agency - Enter name of agency - Agency Number - Provided by Agency Payroll Office - Employee Social Security Number - Employee Name - Complete first name, middle initial, last name - Home Address - Street name and number or R.D. number - Address Continued - Apartment number or P. O. Box number. Pennsylvania residents enter township or borough in which they reside - City, State, Zip code - Abbreviate state; enter complete five-digit zip code - County of Residence - Enter Baltimore City or Maryland County in which you presently reside Section 2 - Federal Withholding Form W-4 To complete section 2 see federal worksheet online at: http://www.irs.gov/pub/irs-pdf/fw4.pdf Section 3 - State Withholding Form (Choose Appropriate Form) - Maryland (Form MW 507) - To complete section 3 see Maryland worksheet page 2 online at: http://forms.marylandtaxes.com/current_forms/mw507.pdf - District of Columbia (Form D-4) - To complete section 3 see District of Columbia worksheet online at : http://otr.cfo.dc.gov/otr/frames.asp?doc=/otr/lib/otr/tax/forms/D-4.pdf - West Virginia (WV/IT-104) - To complete section 3 see West Virginia worksheet online at: http://www.state.wv.us/taxrev/uploads/it100-1-a.pdf Section 4 - Employee Signature - Your signature is required. Withholding Forms are not valid unless signed.
Transcript of INSTRUCTIONS & WORKSHEET FOR COMPLETING …
(Thissupersedesallpreviouseditions) Effective1/1/12
INSTRUCTIONS & WORKSHEET FORCOMPLETING WITHHOLDING FORMS
FOR MARYLAND STATE EMPLOYEES
ThelawrequiresthatyoucompleteanEmployee’sWithholdingAllowanceCertificatesothatyouremployer,thestateofMaryland,canwithholdfederalandstateincometaxfromyourpay.Yourcurrentcertificateremainsineffectuntilyouchangeit.
Ifyouhavepreviouslyfiledas“EXEMPT”fromfederalorstatewithholding,youmustfileanewcertificateannuallybyFebruary15ofeachyear.
CompletetheEmployee’sWithholdingAllowanceCertificateasfollows:
Section1-EmployeeInformation
-PleasechecktypeofPayroll-Regular(RG),Contract(CT),orUniversityofMaryland(UM)-NameofEmployingAgency-Enternameofagency-AgencyNumber-ProvidedbyAgencyPayrollOffice-EmployeeSocialSecurityNumber-EmployeeName-Completefirstname,middleinitial,lastname-HomeAddress-StreetnameandnumberorR.D.number-AddressContinued-ApartmentnumberorP.O.Boxnumber.Pennsylvaniaresidentsentertownshiporboroughinwhichtheyreside-City,State,Zipcode-Abbreviatestate;entercompletefive-digitzipcode-CountyofResidence-EnterBaltimoreCityorMarylandCountyinwhichyoupresentlyreside
Section 2 - Federal Withholding Form W-4
Tocompletesection2seefederalworksheetonlineat: http://www.irs.gov/pub/irs-pdf/fw4.pdf
Section 3 - State Withholding Form (Choose Appropriate Form)
-Maryland(FormMW507)-Tocompletesection3seeMarylandworksheetpage2onlineat:
http://forms.marylandtaxes.com/current_forms/mw507.pdf
-DistrictofColumbia(FormD-4)-Tocompletesection3seeDistrictofColumbiaworksheetonlineat:
http://otr.cfo.dc.gov/otr/frames.asp?doc=/otr/lib/otr/tax/forms/D-4.pdf
-WestVirginia(WV/IT-104)-Tocompletesection3seeWestVirginiaworksheetonlineat:
http://www.state.wv.us/taxrev/uploads/it100-1-a.pdf
Section 4 - Employee Signature - Your signature is required. WithholdingFormsarenotvalidunlesssigned.
2012 Form W-4 Instructions - Page 1Employee’s Federal Withholding Allowance
Form W-4 (2012)Purpose.CompleteFormW-4sothatyouremployercanwithholdthecorrectfederalincometaxfromyourpay.ConsidercompletinganewFormW-4eachyearandwhenyourpersonalorfinancialsituationchanges.
Exemption from withholding.Ifyouareexempt,completeonlylines1,2,3,4and7andsigntheformtovalidateit.Yourexemptionfor2012expiresFebruary18,2013.See Pub. 505, TaxWithholdingandEstimatedTax.
Note:If another person can claim you as a dependent on his or her tax return, you cannot claim exemption from withholding if your income exceeds $950 and includes more than $300 of unearned income (for example, interest and dividends).
Basic instructions.Ifyouarenotexempt,completethePersonal Allowances Worksheet below.Theworksheetsonpage2furtheradjustyourwithholdingallowancesbasedonitemizeddeductions,certaincredits,adjustmentstoincome,ortwo-earners/multiplejobssituations.Completeallworksheetsthatapply. However,youmayclaimfewer(orzero)allowances. For regularwages,withholdingmustbebasedonallowancesyouclaimedandmaynotbeaflatamountorpercentageofwages.
Head of household.Generally,youmayclaimheadofhouseholdfilingstatusonyourtaxreturnonlyifyouareunmarriedandpaymorethan50percentofthecostsofkeepingupahomeforyourselfandyourdependent(s)orotherqualifyingindividuals.SeePub.501,Exemptions,StandardDeduction,andFilingInformation,forinfomation.
Tax credits.Youcantakeprojectedtaxcreditsintoaccountin
figuringyourallowablenumberofwithholdingallowances.CreditsforchildordependentcareexpensesandthechildtaxcreditmaybeclaimedusingthePersonal Allowances Worksheet below.SeePub. 505forinformationonconvertingyourothercreditsintowithholdingallowances.Nonwage income.Ifyouhavealargeamountofnonwageincome,suchasinterestordividends,considermakingestimatedtaxpaymentsusingForm 1040-ES,EstimatedTaxforIndividuals.Otherwise,youmayoweadditionaltax.Ifyouhavepensionorannuityincome,seePub. 505tofindoutifyoushouldadjustyourwithholdingonformW-4orW-4P.Two earners/Multiple jobs.Ifyouhaveaworkingspouseormorethanonejob,figurethetotalnumberofallowancesyouareentitledtoclaimonalljobsusingworksheetsfromonlyoneFormW-4.YourwithholdingusuallywillbemostaccuratewhenallallowancesareclaimedontheFormW-4forthehighestpayingjobandzeroallowancesareclaimedontheothers.SeePub.505fordetails.Nonresident alien.Ifyouareanonresidentalien,seeNotice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens,beforecompletingthisForm.Check your withholding.AfteryourFormW-4takeseffect,usePub.505toseehowtheamountyouarehavingwithheldcomparestoyourprojectedtotaltaxfor2012.SeePub.505,especiallyifyourearningsexceed$130,000(Single)or$180,000(Married).Future developments. TheIRShascreatedapageonIRS.govforinformationaboutFormW-4,atwww.IRS.gov/w4. InformationaboutanyfuturedevelopmentsaffectingFormW-4(suchaslegislationenactedafterwereleaseit)willbepostedonthatpage.
Line 1Employee Withholding Allowance Certificatea.Numberofpersonalexemptions(totalexemptionsonlinesA,CandDofthefederalW-4orW-4Aworksheet a._____
b.Numberofadditionalexemptionsfordependentsover65yearsofage b._____
c.Numberofadditionalexemptionsforcertainitems,includingestimateditemizeddeductions,alimonypayments,allowablechildcareexpenses,qualifiedretirementcontributions,businesslossesandemployeebusinessexpensesfortheyear. c._____
d.Numberofadditionalexemptionsfortaxpayerand/orspouseatleast65yearsofageand/orblind d._____
e.Total-addlinesathroughdandenterhereanonline1(FormMW507) e._____
Exemptions for dependents-toqualifyasyourdependent,youmustbeentitledtoanexemptionforthedependentonyourfederalincometaxreturnforthecorrespondingtaxyear.
Additional exemptions for dependents over65 years of age-Anadditionalexemptionisallowedfordependentswhoare65yearsofageorolder.
Additional exemptions- Youmayclaimadditionalexemptionsforcertainitems,includingestimateditemizeddeductions,alimonypayments,allowablechildcareexpenses,qualifiedretirementcontributions,businesslossesandemployeebusinessexpensesfortheyear.Oneadditionalwithholdingexemptionispermit-tedforeach$3,200ofestimateditemizeddeductionsoradjustmentstoincomethatexceedthestandarddeductionallowance.
NOTE: Standarddeductionallowanceis15%ofMarylandadjustedgrossincomewithaminimumof$1,500andamaximumof$2,000foreachtaxpayer.
Additional exemptions for taxpayer and/or spouse - Anadditional$1,000maybeclaimedifthetaxpayerand/orspouseisatleast65yearsofageand/orblindonthelastdayofthetaxyear.
Line 2Additional withholding per pay periodunder agreement with employer-ifyouarenothavingenoughtaxwithheld,youmayaskyouremployertowithholdmorebyenteringanadditionalamountonLine2.
Line 3Exemption from withholding. YoumaybeentitledtoclaimanexemptionfromthewithholdingofMarylandincometaxif:a.lastyearyoudidnotoweanyMaryland
incometaxandhadarighttoafullrefundofanytaxwithheld;andb. thisyearyoudonotexpecttooweanyMarylandincometaxandexpecttohavetherighttoafullrefundofallincometaxwithheld.Ifyouareeligibletoclaimthisexemption,youremployerwillnotwithholdMarylandincometaxfromyourwages.
Students and seasonal employees - whoseannualincomewillbebelowtheminimumfilingrequirements(annualincomelessthan$9,500 for 2012)shouldclaimexemp-tionfromwithholding.ThisprovidesmoreincomethroughouttheyearandavoidsthenecessityoffilingaMarylandincometaxreturn.
Line 4Certification of nonresidence in the State of Maryland-ThislineistobecompletedbyresidentsofPennsylvaniaandVirginiawhoareemployedinMarylandanddonotmaintainaplaceofabodeinMarylandfor183daysormore.
Line4isnot tobeusedbyresidentsofotherstateswhoareworkinginMaryland,becausesuchpersonsareliableforMarylandincometaxandwithholdingfromtheirwagesisrequired.
IfyouaredomiciledintheDistrictofColumbia,PennsylvaniaorVirginiaandmaintainaplaceofabodeinMarylandfor183daysormore,youbecomeastatutoryresidentofMarylandandyouarerequiredtofilearesidentreturnwithMarylandreportingyourtotalincome.Youmustapplytoyourdomicilestateforanytaxcredittowhichyoumaybeentitledunderthereciprocalprovisionsofthelaw.
IfyouaredomiciledinWestVirginia,youarenotre-quiredtopayMarylandincometaxonwageorsalaryincome,regardlessofthelengthoftimeyoumayhavespentinMaryland.
Line 5UndertheServicemembersCivilReliefActasamendedbytheMilitary Spouses Residency Relief Act,youmaybeexemptfromMarylandincometaxonyourwagesif(i)yourspouseisamemberofthearmedforcespresentinMarylandincompliancewithmilitaryorders;(ii)youarepresentinMarylandsolelytobewithyourspouse;and(iii)youmaintainyourdomicileinanotherstate.IfyouclaimexemptionundertheSCRAenteryourstateofdomicile(legalresidence)onLine5;enter“EXEMPT”intheboxtotherightonLine5;andattachacopyofyourspousal military identification card toFormMW507.You must also complete and attach Form MW507M.
GENERAL INSTRUCTIONSFederal Privacy Act information -SocialSecuritynumbersmustbeincluded.ThemandatorydisclosureofyoursocialsecuritynumberisauthorizedbytheprovisionssetforthintheTax-GeneralArticleoftheAnnotatedCodeofMaryland.Suchnum-bersareusedprimarilytoadministerandenforcetheindividualincometaxlawsandtoexchangeincometaxinformationwiththeInternalRevenueService,otherstatesandtaxofficialsofthisstate.
Informationfurnishedtootheragenciesorpersonsshall
beusedsolelyforthepurposeofadministeringtaxlawsorthespecificlaws,administeredbythepersonhavingstatutoryrighttoobtainit.
Duties and Responsibilities of Employer - Retainthiscertificatewithyourrecords.Youarerequiredtosubmitacopyofthiscertificateandaccompanyingattachmentstothe
ComplianceDivisionComplianceProgramsSection301WestPrestonStreetBaltimoreMD21201
whenreceivedif:1.youhaveanyreasontobelievethiscertificateisincorrect.2.theemployeeclaimsmorethan10exemptions;3.theemployeeclaimsexemptionsfromwith-holdingbecausehe/shehadnotaxliabilityfortheprecedingtaxyear,expectstoincurnotaxliabilitythisyearandthewagesareexpectedtoexceed$200aweek;or4.theemployeeclaimsexemptionsfromwithholdingonthebasisofnonresidence.5.theemployeeclaimsanexemptionfromwithholdingundertheMilitarySpousesResidencyReliefAct.
Uponreceiptofanyexemptioncertificate(formMW507),theComplianceDivisionwillmakeadeterminationandnotifyyouifachangeisrequired.
OnceacertificateisrevokedbytheComptroller,theemployermustsendanynewcertificatetotheComptrollerforapprovalbeforeimplementingthenewcertificate.
Ifanemployeeclaimsexemptionunder3,4or5above,anewexemptioncertificatemustbefiledbyFebruary15thofthefollowingyear.
Duties and Responsibilities of Employee -If,onanydayduringthecalendaryear,thenumberofwithholdingexemptionsthattheemployeeisentitledtoclaimislessthanthenumberofexemptionsclaimedonthewithholdingcertificateineffect,theemployeeshallfileanewwithholdingexemptioncertificatewiththeemployerwithin10daysafterthechangeoccurs.
Foradditionalinformationpleasecall
410-260-7980ortollfree1-800-638-2937
orvisitourWebsiteatwww.marylandtaxes.com
2012 INSTRUCTIONSEMPLOYEE’S STATE OF MARYLAND WITHOLDING ALLOWANCE
RevenueAdministrationDivision
