Comptroller Schaefer Offers Tax Tip to Summer Workers on How to Increase Their Take-Home Pay
Tax Withholding Exemption Helps Taxpayers Earning Less than $8,450
ANNAPOLIS —Maryland Comptroller William Donald Schaefer today reminded students and other seasonal employees that they may be able to increase their take-home pay by claiming a special exemption on tax withholding forms that they complete for their employers.
“At minimum wage, a taxpayer who works 11 or 12 weeks during the summer can actually pick up the equivalent of an extra paycheck by claiming this exemption,” said Comptroller Schaefer.
Under Maryland law, single taxpayers under 65 years of age are not required to file a state return for tax year 2006 unless they receive more than $8,450 in income. The Comptroller urges applicable workers to seek an exemption from withholding of state and local income taxes when they are hired.
Workers earning less than $8,450 should claim the exemption from withholding of state income tax on line 3 of Form MW507, the Employee’s Maryland Withholding Exemption Certificate.
The Comptroller’s Office has received more than 115,400 tax returns this year from individuals whose incomes were below the minimum filing level and who were only filing a tax form to get a refund of taxes unnecessarily withheld.
Form MW507 may be downloaded from the Comptroller’s Web site at: www.marylandtaxes.com. Businesses and student employees with questions about the withholding exemption should call 410-260-7980, in Central Maryland, or 1-800-MD TAXES from elsewhere, Monday through Friday, 8:00 a.m. to 5:00 p.m.