For Maryland, the non-residency certificate used to claim exemption from Maryland state income tax withholding is Form MW507. However, to claim an exemption as a resident of a reciprocal state (like Pennsylvania), you must specifically fill out Part 2 of this form.
Instructions for Using Form MW507 (Employee’s Maryland Withholding Exemption Certificate):
- Who Should Use It:
- Residents of Pennsylvania, Virginia, West Virginia, or Washington, D.C. who work in Maryland and want to avoid Maryland state income tax withholding.
- How to Use It:
- Complete Part 2 of the form: In this section, you will certify that you are a resident of a state with a reciprocal tax agreement with Maryland (such as Pennsylvania).
- Submit the completed Form MW507 to your Maryland employer to prevent them from withholding Maryland state income tax from your wages.
- Where to Get the Form:
- Form MW507 can be downloaded from the Maryland Comptroller’s website or requested from your employer.
- Additional Filing Requirements:
- You will need to file a resident tax return in Pennsylvania and pay taxes there on the income earned in Maryland.
By submitting Form MW507, you ensure that Maryland income taxes are not withheld from your wages and that you will only need to pay income taxes to your home state of Pennsylvania.
