How do I arrange to have federal and/or Maryland State taxes withheld?
At retirement you are required to complete a Federal and Maryland State Tax Withholding Request form (Form 766) designating the amount of withholding from your check. You may elect not to have taxes withheld by checking the appropriate boxes on the form. You should be aware that failure to have sufficient taxes withheld may subject you to a penalty. If you do not complete Form 766, the Agency is required by the IRS to withhold federal taxes at the rate of married with three exemptions. IRS tax regulations require your federal tax withholding to be calculated using IRS tax withholding tables. You can no longer only designate a specific dollar amount to be withheld for federal tax. You must first designate your marital status and number of allowances on line 2 of the form. Then you can designate an additional amount to be withheld on Part I, line 3 of Form 766. You can change your tax withholdings at any time by completing a new Form 766. Each time you submit a new Form 766, it completel
