INSTRUCTIONS & WORKSHEET FOR COMPLETING …
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