Primary residence in PA but work in MD, MW507 Exemption Same as W4 Allowance?

[djwiz1967]

I live in Pennsylvania but work in Maryland.  I need to fill out the MW507 form, should my number exemptions match the same allowance I've used on my W4 form?  For example, my allowance in my M4 form is 1.  Shouldn't my MW507 exemption be the same number?  Thanks in advance!

[IreneS · Accepted solution]

You don't have to fill out any exemptions on MW507.  Just enter EXEMPT on line 5 of the form.

Since you are a resident of PA, you don't have to have MD taxes withheld from your paycheck just PA.. 

PA and MD have a reciprocity agreement--an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns in the future.  File exemption form MW507 with your employer so that MD taxes won't be taken out in the future (just PA taxes).

[djwiz1967]

Thank you so much, that was really helpful!