Maryland Exemption from Maryland Withholding Tax for a Qualified Civilian Spouse of Military

Exemption from Maryland Withholding Tax for a Qualified Civilian Spouse of Military
MW507M 2023 011923 C
MARYLAND
FORM

MW507M

2023

Exemption from Maryland Withholding Tax
for a Qualified Civilian Spouse of a U.S. Armed
Forces Servicemember

• Employee - See "Instructions for employee" for eligibility requirements and other information.
• Employer - See "Instructions for employer" for the purpose and proper handling of this form.
Part 1 - To be completed by the employee
1. For each of the following statements, indicate whether it applies to you. If it applies, check "YES." If it does not apply, check
"NO." If you check "NO" to any of the statements, you are not eligible for the withholding exemption.
YES	NO
a. I am not a member of the U.S. armed forces. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	
b.	 I am married to an active duty member of the U.S. armed forces . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	
c.	 I am domiciled in a state other than Maryland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	
d.	 My military spouse's permanent duty station is in Maryland, an immediate neighboring state,
	 or the District of Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	
e.	 I am residing and working in Maryland only to be with my military spouse while he
	 or she is stationed in Maryland, an immediate neighboring state, or the District of Columbia . . . . . . . . 
2.	 If you checked "YES" to ALL of the statements in item 1, provide the following information for you (the employee) and your
military spouse. All boxes must be filled in to be valid. If you checked “NO” to any of the statements in item 1, do not continue
because you do not qualify for exemption from Maryland withholding tax for a qualified civilian spouse of a U.S. Armed Forces
Servicemember. You must correct your Form MW507 filing if you had entered EXEMPT on line 8 of that form.
Employee
information

Military
spouse
information	

3.

Name (First, MI, Last)	

Social Security Number	

State of domicile (legal residence)

Street address where currently residing	

City	

State	

+4

Name (First, MI, Last)	

Social Security Number

Military spouse’s permanent duty station and state	

State of domicile (legal residence)

I declare, under penalties of perjury, that the wages I earn for my services performed in Maryland are exempt from Maryland
income tax because I meet the conditions of the Military Spouses Residency Relief Act (50 U.S.C. 4001), and the information I
provided on this form is accurate to the best of my knowledge and belief.

Employee's signature	

•
•
•
•

ZIP code	

Date signed (MM/DD/YYYY)	

Phone number

ATTACH A COPY OF YOUR DEPENDENT MILITARY ID CARD ISSUED BY THE U.S. DEPT. OF DEFENSE
Give the completed Form MW507M with attached copy of your civilian spousal military ID card to your employer.
Notify your employer if you become ineligible for this exemption - see instructions.
You must complete a new Form MW507M each year to maintain the exemption - see instructions.

Part 2 - To be completed by the employer
Note: An employer shall be held harmless from liability for withholding based on the employee's representations on
this form.

Employer name	

Employer identification number (EIN)	

Street address	

City	

State	

ZIP code	

+4

• See "Instructions for employer" for the proper handling of this form.
FEDERAL PRIVACY ACT INFORMATION Social Security numbers must be included. The mandatory disclosure of your Social Security number is
authorized by the provisions set forth in the Tax-General Article of the Annotated Code of Maryland. Such numbers are used primarily to administer
and enforce the individual income tax laws and to exchange income tax information with the Internal Revenue Service, other states and other tax
officials of this state. Information furnished to other agencies or persons shall be used solely for the purpose of administering tax laws or the specific
laws administered by the person having statutory right to obtain it.

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MARYLAND
FORM

MW507M

Exemption from Maryland Withholding Tax
for a Qualified Civilian Spouse of a U.S.
Armed Forces Servicemember
Instructions

Purpose of form
The Military Spouses Residency Relief Act (“Act”) is federal
legislation that was signed into law on November 11, 2009.
This Act amended the Servicemembers Civil Relief Act to
provide a number of benefits to civilian spouses of active duty
U.S. armed forces servicemembers. If certain conditions are
met, one of the benefits exempts from income tax a civilian
spouse’s compensation received for working in the state where
the servicemember spouse is stationed. The Veterans Benefits
and Transition Act of 2018 (P.L. 115-407) provided additional
exemption benefits.
An employee whose wages are exempt from Maryland income
tax because of the Act must use Forms MW507 and MW507M
to apply for exemption from Maryland income tax withholding.
Instructions for employee
Eligibility
If you are a civilian spouse of an active duty U.S. armed forces
servicemember, you need to complete Form MW507M if you
meet all of the following conditions:
• 	 You maintain domicile in a state other than Maryland. See
“Domicile outside Maryland” below, and Administrative
Release No. 1;
•	 Your servicemember spouse’s permanent duty station is
in Maryland, an immediate neighboring state of Maryland
(Delaware, Pennsylvania, Virginia or West Virginia), or
the District of Columbia; and,
• 	 You are in Maryland only to be with your servicemember
spouse who is stationed in Maryland, an immediate
neighboring state of Maryland, or the District of Columbia.
Domicile outside Maryland
“Domicile” refers to your residence by law, and is also referred
to as your legal residence. It is the place that is your permanent
home, and is the place to which you always intend to return
whenever you are absent from it. Domicile is based on your
intent and actions, which must be consistent.

2023

The due date for renewing Forms MW507 and MW507M is
February 15. Your employer may discontinue this exemption
from Maryland withholding in the absence of a completed
MW507, MW507M and the required documentation showing
that you are still eligible for this exemption.
Notification of ineligibility
You must notify your employer to begin the withholding of
Maryland income tax from your wages if you become ineligible
for the exemption. This would occur in the following cases:
•	 Divorce from the servicemember;
•	 Death of the servicemember;
•	 Change in your domicile to Maryland; or,
•	 A change in the servicemember’s permanent duty
station to a location other than Maryland, an immediate
neighboring state of Maryland, or the District of Columbia.
Instructions for employer
Requirement to withhold
Maryland income tax law requires you to withhold Maryland
income tax from wages paid to an employee if the employee
performs services within Maryland and the wages are subject
to federal income tax withholding.
Form MW507M exemption
An exception to the requirement to withhold Maryland income
tax applies if an employee completes and gives to you Forms
MW507 and MW507M. This exception applies only if you have
these forms on file for the employee; it is not enough that the
employee is eligible for the exemption under the Act.
What you must do
If an employee gives you a completed Form MW507M, do the
following:
1.	 Check to see that all lines in Part 1 are filled in and a copy
of the employee’s dependent military ID card is attached.
If not, return the form to the employee;

The Servicemembers Civil Relief Act provides that the domicile
of a U.S. armed forces servicemember does not change based
only on the servicemember’s presence in a state in compliance
with military orders. The Military Spouses Residency Relief
Act provides that a civilian spouse’s domicile does not change
based only on the civilian spouse’s presence in a state to be
with the servicemember.

2.	 Fill in Part 2;

Completing Form MW507M
If you meet all of the eligibility requirements for the exemption
from withholding, fill out lines 1 through 3 of Part 1. Attach
a copy of your dependent military ID card to Form MW507M,
Form MW507 and give them to your employer.

4.	 Mail a copy of the completed Forms MW507, MW507M
and attached military ID card to:
Comptroller of Maryland
Compliance Division
Compliance Programs Section
301 West Preston Street
Baltimore, MD 21201-2326

When the withholding exemption takes effect
Form MW507M takes effect on the later of (1) the date you give
it to your employer or (2) the first payroll period your employer
is able to put the exemption into effect. The exemption does
not apply to wages paid prior to the date Form MW507M takes
effect.
Annual renewal
Form MW507M is valid only for the calendar year for which it is
completed. Provided you are still eligible, you must file a new
Form MW507 and MW507M for each subsequent year you want
to continue the exemption from Maryland withholding.

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3.	 Keep the original signed Form MW507M and the attached
copy of the military ID card for your payroll records;
it relieves you of your obligation to withhold Maryland
income tax, and you shall be held harmless from liability
for withholding based on the employee’s representations
on the form; and,

Questions
If you have questions about this form, visit www.
marylandtaxes.gov or email your question to TAXHELP@
marylandtaxes.gov. You may also call 1-800-638-2937 or from
Central Maryland 410-260-7980.