income tax withholding in MD

Anonymous
Holy run-around, Batman! I am moving from DC to MD and for the life of me I cannot figure out how to fill out the stupid MW507 Maryland Withholding Exemption Certificate. I just called Maryland taxpayer assistance and that was a complete and utter waste of time. My question was about how many exemptions I can claim (DC is different from the Feds in this regard). For 2014 I will be married filing separate, claiming 2 children as dependents. I think that means I should enter 3 exemptions and do the calculation on second page, which yields 4.875. I am told to round-down, so this would be 4 exemptions.

This is completely confused by the taxpayer assistance agent who told me to make sure I put down 8% because otherwise I will incur penalties and fees. There is nowhere on the blessed form to put down 8%. How dos the 8% relate to the exemptions? What the heck does he mean by MD being a "pay as you go" state? Don't they take money out of every check??

I know this is probably way simpler than this man made it sound, but can someone please break it down for me? Thanks.
Anonymous
I moved from DC to MD last year and was pretty clueless about how much I should be paying in taxes to MD. It worked out fine by the time tax time came around. It is a real pain to allocate your income and deductions between DC and MD.

Anyway, you will probably be fine with 4 or 5 exemptions - go with 4 to be safe.
Anonymous
OP I am with you! I have lived in MD for a few years. We always get a refund so this year I wanted to adjust our withholding to get closer to break even. The form was so confusing I gave up. We withhold 0 because I can't figure the GD form out!! I'm visiting my parents this weekend and hoping my mom can help me
Anonymous
We also get a lot back from MD every year so I changed my withholding from 1 to 2 and it only made about $15 difference per pay period and we still received a big reimbursement this year. Since we always owe fed I have stopped trying to tinker w/ MD.
post reply Forum Index » Money and Finances
Message Quick Reply
Go to: