I thought the IRS was very picky about your not omitting income on this form. So if I have already filed a W4-V will somebody at the IRS check that? It seems there is some kind of penalty if you lie on this form? Also since I just retired my income will change drastically next year vs. this year since I had a job for 7 months of this year. Should I file another W4p for next year?
The IRS does not care *how* you pay your taxes throughout the year, but the IRS does care *that* you pay taxes throughout the year, based on how you earn your income. So if you choose another way to pay taxes, it does not matter what you put on this form, as long as it's enough. For example, you can use IRS Form 1040-V, which is the quarterly payment voucher (see resources below), or you can make online payments through the IRS website. The IRS will impose a penalty for not paying *enough* taxes throughout the year. You would use IRS Form 2210 when filing your tax return to determine whether you have a penalty, and to calculate it (see links below). You can check your withholdings to determine whether you're withholding enough taxes by using the worksheet in the IRS Form 1040-ES instructions (see below). From there, you can increase withholdings on your Form W-4 if you need to. IRS Form 1040-V, Payment Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-v-instructions/ Video: th-cam.com/video/Js3qWBaV-Lo/w-d-xo.html IRS Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts Article: www.teachmepersonalfinance.com/irs-form-2210-instructions/ Video: th-cam.com/video/9Mm1EI6BSjI/w-d-xo.html Schedule AI Video: th-cam.com/video/MMbwYmZDMSw/w-d-xo.html IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Thanks for the information. I just retired from a job halfway through 2024 and I will receive a pension starting a month from now. I am still confused by the W4-P. I file taxes jointly with my wife, she is still working. We filed all 2023 income tax forms the first of 2024. When I fill out the W4-P do I need to include my wife's estimated income for 2024, despite the fact she has taxes taken out already from current job? I had taxes taken out of my job I worked in up to now, but that job just ended. I don't want too much withheld. Can't I just skip W-4P sections 2 and 3 and use section 4 c (additional withholdings) if I think I will be short, just to balance out taxes already take out first half of the year? Thanks in advance.
Generally, I would offer this suggestion: 1. File your Form W-4P and leave everything blank, unless you are confident that you are putting the correct information into each line. The form is designed well, but the instructions can be confusing. You can leave it blank, then make adjustments later on by refiling. 2. Complete the worksheet for IRS Form 1040-ES, Estimated Tax Voucher. This is probably the best way to estimate your tax liability for the year, and you should know whether you're on track or not. 3. If you need to withhold extra, simply refile Form W-4P with extra withholding (Line 4c). Another option (and a preferable one, if your wife hasn't updated her Form W-4 in more than 2 years, would be to have her refile her W-4, then complete Steps 2 and 3 as outlined above. Below are links to Form 1040-ES and W-4 resources for more detail: IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html IRS Form W-4, Employee’s Withholding Certificate Article: www.teachmepersonalfinance.com/irs-form-w-4-instructions/ Video: th-cam.com/video/a7qxsGYLtkU/w-d-xo.html
I am retiring at the end of this year 12-31-24. This is the last piece of required paperwork I am required to fill out and it is kicking me pretty good. Have not touched my W-4 since I entered federal service in 94. Not sure when I will start collecting Social Security or when I will draw from my TSP. So it sounds like I initially don’t enter anything for myself. My wife is a Federal worker with 25 years of service. This is her only income with a current W4 on file. Do I need to input her earnings in Step 2 (b)(I)? If so would that be her gross earnings for the year? Or am I way out of in left field? Sounds like it may be a piece of clay for a while until we get it ironed out. Any input would be appreciated. Thanks in advance.
Since you're planning for 2025 tax withholdings, you can leave everything blank (or enter your wife's earnings, if you wish). What I would recommend is that you allow the tax withholdings to take effect on your pension, then use the tax worksheet on IRS Form 1040-ES (see below) to determine if you're on track, or if you need to increase your withholdings. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Thank you the walkthrough! I am working and my w4 takes enough out for my salary. My wife is now retired and receiving a pension. My question is if I fill out form w4p and in line b(i) I put in both her pension (50k) and my salary (100k) won’t I now have too much withheld in total? (150k showing on the w4p with taxes withheld and on my w4 showing 100k). Confused. Thanks in advance!
You should use the worksheet located in the Form 1040-ES instructions to help determine whether you are withholding too much: IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
I have just retired thi years and had wages from a job up until May. Do i need to report that as income on a W4p for a pension plan? I have been getting social security since then. This month I filled out a w4p for a small pension plan in which I reported both my work wages and social security. I am getting ready to fill out yet another w4p for another pension plan which is a little larger and probably won’t start distributions till December. So I am not sure what to report on the W4p for this pension. Do i still include my work wages, social security and other pension as income one?
Generally, I recommend that people estimate their taxes for the year, based upon what their earnings have been to this point. Below are some resources that will walk you through a couple of ways to do this: How to use the IRS tax withholding estimator tool: th-cam.com/video/zXA4ut_OTzU/w-d-xo.html IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html You can use either of these methods to determine whether you're on track or not. From there, you can better understand whether you need to increase withholdings your W-4P (step 4c). I would suggest either this or simply not entering any information on the form, then submitting it. Once you start seeing tax deductions from your pension/annuity payments, you can re-run the tax estimators (as done above), then determine if you're on track. You should plan to rerun your tax projection for the entire year in the year after you retire. You might end up needing to recomplete Form W-4P for the following tax year.
@@pjtrant You don't need to, and you probably shouldn't, if you've already accounted for it on Form W-4V. You can always check your withholdings and increase them if needed.
What about form W-4S for sick benefits? I have filed both this form and the w-4S for the sick benefits. I need to update the W-4P. Should I include the W2 figures on the W-4p form and remove the W-4S? If I want to increase the withholding do I add it to the 4c figure? Thank you.
Before making any changes, you might want to make sure that you're on track to withhold enough taxes this year. The best way to do that is to use the worksheet for IRS Form 1040-ES (see below). IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html From there, you can always increase withholdings manually if you need to. If you need to decrease withholdings, then I would start with making one change at a time.
My father is a veteran with 2 pensions and social security in California. My mother passed away in 2022 so 2023 was his first year filing single, he had to pay close to $8K. I saw below that you answered a similar question. Would you recommend the same, complete Step 2(b)(ii), Step 3, and Step 4 only for the highest paying one. The others, you can file, but leave Steps 2, 3, and 4 blank?
I would suggest starting with that. After the new adjustments kick in, then I would go through the estimated tax worksheet on IRS Form 1040-ES to see if any adjustments need to be made: IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html On a side note, if all things are equal (like your father's income), then your father probably will pay more in taxes than your parents used to. However, making these adjustments (and keeping an eye on whether additional adjustments are needed) will help him avoid having to pay a significant amount next tax season.
Thanks for what you are doing. I'm trying to help my mother fill out hers.. So, my parents are filing jointly. My mothers pension will be much less than what she gets from her social security income. She has no deductions, dependents, or any other income. I'm not really sure how to fill in sections 2-4...
I just put together a new video that walks people through what this type of situation might look like: th-cam.com/video/VZtYpcjKteY/w-d-xo.html While this video walks through the steps of how the pension company must withhold taxes based on instruction, you might benefit from the second half of the video. This is a case study where we literally enter *zero* numbers on the entire form to see how this impacts tax withholdings. If this looks similar to your mother's situation, then you can consider starting with this, then using IRS Form 1040-ES to make sure that you're withholding enough in taxes for the entire tax year: IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
I am completing my w-4p filing joint and will start receiving pension checks; however, I will be working a job that pays more than my pension. What numbers do I enter in step 2?
You should calculate the figure that goes into Step 2(b)(i): If you (and/or your spouse) have one or more jobs, then enter the total taxable annual pay from all jobs, plus any income entered on Form W-4, Step 4(a), for the jobs less the deductions entered on Form W-4, Step 4(b), for the jobs.
I'm still not 100% sure about how to complete the W4P form. My husband gets SSI and I just started receiving a pension. They automatically put me in as "0" (single) for deductions. I would like to see how much more I would get in my check if I put "1". Does that make sense? Also, will I owe money at the end or will I be able to claim "2" on my taxes and get a refund? I hope what I'm asking is clear. Thank you for making the video.
It sounds like they might be offering you an old version of IRS Form W-4P, where you're supposed to enter the number of allowances. I would suggest watching this video and/or reading the article below on the current version (updated in 2022). If you have questions after having watched the video or read the article, then I'd be more than happy to try and help. IRS Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments Article: www.teachmepersonalfinance.com/irs-form-w-4p-instructions/ Video: th-cam.com/video/MQ72wKsJvFg/w-d-xo.html
Thanks, this is the best explainer I've found!! One very specific question I'd appreciate your expertise on is if I have calculated the amount I want withheld from my pension is it allowable just to put that amount in line 4c and put zeros on the rest of the form?
If you did this, you probably would not see the expected result. If you simply put zeros down the form (including Line 4c), then you would have *some* withholding. If you enter an amount in Line 4c, then you would see the same withholding *and* the additional withholding in Line 4c. If you were going to use this plan, I would start with all zeros, wait for the next payment to hit, and recalculate using the worksheet in IRS Form 1040-ES (see below). From there, make any adjustments in Line 4c. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
On a monthly basis, My husband gets 2 pensions from the trade unions he worked for before retiring, 1 small withdrawal from an IRA and social security. We found out that one of his union pensions had no Fed deductions, but the other pension, the IRA and the social security all had federal deductions. In 2023 I got 1 pension with fed taxes taken out. But in 2024 I have changed the amount I get from the pension as I will be getting social security, also with fed deductions taken out. Sadly we owe this year in filing the 2023 taxes, BUT when I filled out the worksheet, both online and in paper I get results that say we should be getting a refund. Any hints to figure out how to fix for 2024?
I'm sorry for the late response. You can always use the worksheet located in IRS Form 1040-ES to estimate your tax withholding and decide whether you need to make any changes to your tax deductions. If you need to increase withholdings, you should be able to use the worksheet to estimate how much you need to adjust (per month, or pay period), then go into ONE Form W-4 to make that adjustment. Or you can simply use the worksheet to calculate how much you need to pay at the end of each quarter. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Yes. I assume these pensions are monthly amounts. If so, you would complete Step 2(b)(ii), Step 3, and Step 4 only for the highest paying one. The others, you can file, but leave Steps 2, 3, and 4 blank. If you want tax withholdings on your SSI, you can do so on IRS Form W-4V (see below) IRS Form W-4V, Voluntary Withholding Certificate Article: www.teachmepersonalfinance.com/irs-form-w-4v-instructions/ Video: th-cam.com/video/jOVaAqOwL_Q/w-d-xo.html After your withholdings kick in, I highly recommend that you use the worksheet in IRS Form 1040-ES (see below) to estimate your tax bill for the year. You can use this to see if you need to make adjustments (up or down) on any withholdings. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
This is our situation: I am newly retired and will begin receiving a pension as of Sept. 2024. I will not be getting SS benefits at this time. My husband remains working with a regular salary. As I understand this form, I am to report his income on line 2b(i), even though his employer will be deducting withholding from his check. Why do I need to report his income when his employer will make the deduction and how does his income, as I report it on line 2b (i) impact my withholding, based on this form?
The new W-4P forms make adjustments for other income sources, such as your husband's job. If you don't put this information in, then your withholdings might be less accurate. Of course, you don't have to put any information in there, if you don't want to. Either way, you might consider checking the accuracy of your withholdings after they take effect. Below are some resources to help you do that, if you're interested. Of the two, I believe the worksheet for Form 1040-ES is more accurate. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html How to use the IRS Tax Estimator Tool th-cam.com/video/zXA4ut_OTzU/w-d-xo.html
This is giving me a headache. My mom is filling this out for her pension which comes out to about $2k a year. She also has social security and self employment income and married to my dad who files jointly. Should she just include my dads income from his job in line 2?
If I understand correctly, your parents have the following: -Your mother's pension -Your mother's Social Security -Your mother's self-employment income -Your father's job You *can* try to see how to manipulate Form W-4P, then have the pension company apply the changes. You can also figure out whether it might be easier to withhold from another source of income, such as your mother's self-employment income, which she has complete control over. In either case, you might want to see if any adjustments are warranted before making *any* changes. The best way (that I've found) is to use the worksheet for IRS Form 1040-ES: IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html Once you've determined whether or not you need to make additional payments, you have some options. The IRS doesn't care *which* option you choose...the IRS just wants the money: 1. Send in the tax payment voucher from Form 1040-ES. This is the most 'old school' way. I used to have financial planning clients insist on doing this, but no one under the age of 65. 2. Make payments directly to the IRS on the IRS website: www.irs.gov/payments. If you do this, keep records of your payments so you don't forget come tax time. In fact, your mother may be doing this if her self-employment income is significant and she has to make estimated tax payments throughout the year. 3. Make the change as you outlined on Form W-4P. 4. Adjust your father's W-4, then include your mother's pension income on *his* withholding: IRS Form W-4, Employee’s Withholding Certificate Article: www.teachmepersonalfinance.com/irs-form-w-4-instructions/ Video: th-cam.com/video/a7qxsGYLtkU/w-d-xo.html You can also withhold from your mother's Social Security payments on IRS Form W-4V: IRS Form W-4V, Voluntary Withholding Certificate Article: www.teachmepersonalfinance.com/irs-form-w-4v-instructions/ Video: th-cam.com/video/jOVaAqOwL_Q/w-d-xo.html However, you can only choose specific percentages of withholding from Social Security: 7%, 10%, 12%, or 22%.
Hello, I am retired with social security being my only income. I'm supposed to get a pension of $374 per month through my union, starting on 9/1/24. The union asks me to fill the form W-P4. I live in Florida. I have no idea how to fill this form. Your help will be greatly appreciated. Thank you.
To start, I would say that you should watch the video in its entirety, as it explains the form step by step. If you already have watched the video, what specific questions do you have?
I am confused with this new form. My husband is still currently working but is applying for federal retirement. I get a federal annuity and SS payments and We always file jointly. In 2 B (i) are we adding his current salary and my annuity and SS? I don't get this at all. Or do I add my annuity in 2 B (ii) ?
I would use the worksheet in IRS Form 1040-ES to estimate your income and taxes for the year. You can use the worksheet to determine whether your current withholdings are enough, then you can make adjustments accordingly. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html To answer your specific questions, I'll assume that you're completing this for your annuity: In Line 2b(i), you should be entering the income from jobs only (as outlined on the form). For Line 2b(ii), you should add *other* pensions and annuities that are lower than this one, if there are any. If not, then don't enter anything here. Don't include Social Security in this calculation. If you want to account for Social Security, then you should enter *taxable* Social Security in Line 4a. If you're still stuck, then you might want to walk through the IRS withholding calculator: www.irs.gov/individuals/tax-withholding-estimator
I need to just increase my withhold about $1200/year. So can I just fill out Step 1 then go to line 4C and put in $100 for each monthly payment and send that to where I want it paid from?
You can try this to start. But I would suggest keeping an eye on your statements to see if any additional adjustments are warranted after the withholdings kick in.
2023 we underpaid $13,000...my wife pension was only withdrawing 8% on $80,000, plus we take IRA, SSA, etc....can I just fill out the W-4P and on line 4c add $1,500 per month(that's the amount needed)....do I have to add any other figures to the lines in the form?
You can start with that. After the new withholdings kick in, I would go back to see what the *true* difference is between the old withholding amount and the new (it might not be exactly $1,500 per month), then make adjustments accordingly.
I am being asked to fill out form W-4 P during the process of applying for my pension. I have already applied for Social Security and the application is being reviewed. My last day at my job is 6/30/24. My husband is self-employed and he submits estimated taxes for his jobs. He also gets Social Security, but no pension. Since I have no idea how much I will be getting for sure on my pension and Social Security can I just fill out step one and skip to step 5 then fill do an adjustment later when I know how much I will be getting
You can always do this. When the tax deductions start to kick in, then it might be worthwhile for you and your husband to calculate your estimated taxes (from all income sources) on the IRS Form 1040-ES worksheet. Below is a link to the article and video on how this works (you don't have to use the tax voucher to do the calculations on the worksheet inside the form instructions): IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
I am single, no other income or dependents. I just basically signed the form. Do I need to fill a W4v? I do not want to owe. I just get my annuity 1 time a month. I am getting a RRB annuity.
I don't know enough about your tax situation to specifically advise you what to do. However, I do suggest to everyone that you can do the following: 1. Wait until the withholding changes take place (based on how long it takes your payer to process your completed Form W-4P). 2. Compare your new withholdings to your old withholdings to see if you're on track to withhold the proper amount this year. There are a lot of methods to do this, but I usually advise people to use the worksheet located in the Form 1040-ES instructions (see below links). 3. Make adjustments as necessary. If you need additional withholding, then you can use the Extra Withholding block in Line 4c to do this (you don't need to complete a Form W-4V for another source of income). IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Isn't there some simple way to have a set percentage of a pension payment withheld for Federal Income Taxes? For example, a monthly pension payment is $4000 and I want $800 (20%) withheld. (Filing status married filing jointly.). Thank you.
I would suspect that the calculation would be a matter of taking the annual pension amount, subtracting the standard deduction, and using the result as the taxable income. Then determining the Federal Tax on that taxable income and adding whatever is needed on line 4(c) Extra Withholding to to be $800 per month. Is this correct, or am I totally out of my mind?
@@skipglobal1305 If you took this approach, then you would end up withholding $800 per pay period (whether it's monthly or not) *in addition to* the withholding that your pension provider would end up having to calculate. While you can designate a specific percentage on IRS Form W-4R (see below), you might not be able to use it for your pension. What you could do, though, is complete the form as instructed, then examine the difference between the new withholdings and old withholdings. Once you know the difference, then you can complete Form W-4P again (yep, that part kind of stinks), with the required additional holding in Line 4c. IRS Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollovers Article: www.teachmepersonalfinance.com/irs-form-w-4r-instructions/ Video: th-cam.com/video/Aa_n50wOA_I/w-d-xo.html
I am retired with a modest pension, social security, an annual IRA distribution, and interest income. I already have appropriate withholding on the SS and IRA distribution. I wanted to increase the withholding on my pension ONLY in 2024 to compensate for anticipated spike in interest income, from which there is NO withholding. Apparently, I made a mistake by interpreting SS income as another "pension or annuity" and putting it on W-4P line 2(b)(ii), which resulted in my former employer's pension administrator bumping my withholding up a lot higher than necessary. The pension admin company is hopeless to try talk to--opaque, passive-aggressive, etc. So, do you think I should resubmit another W-4P form, deleting the SS income on the form, see what happens?
From what I'm reading here, it seems that resubmitting another W-4P form without your Social Security income is your best opportunity to lower your tax withholdings. After the new withholdings take place, you can always re-evaluate to see if further adjustments are necessary.
Generally, the federal government will determine the taxability of your Social Security benefits based upon your combined income. Combined income is defined as: Adjusted Gross Income + Nontaxable Interest + Half of Your Social Security Benefits. For single taxpayers: If your combined income is below $25,000, your Social Security benefits are not taxable If your combined income is between $25,000 and $34,000, 50% of your Social Security benefits are taxable. If your combined income is above $34,000, 85% of your Social Security benefits are taxable. For married taxpayers filing jointly: If your combined income is below $32,000, your Social Security benefits are not taxable If your combined income is between $32,000 and $44,000, 50% of your Social Security benefits are taxable. If your combined income is above $44,000, 85% of your Social Security benefits are taxable.
To clarify, we're discussing the following TIP as outlined in Step 2: To be accurate, submit a new Form W-4P for all other pensions/annuities if you haven’t updated your withholding since 2021 or this is a new pension/annuity that pays less than the other(s). Submit a new Form W-4 for your job(s) if you have not updated your withholding since 2019. In other words, the IRS changed the formats for Forms W-4 and W-4P a few years ago to allow for more accurate tax withholding. If your Form W-4 or W-4P that is currently on file (with your employer, pension provider, or other payer) is out of date (as indicated in the TIP wording), then you might want to submit a new form that may result in more accurate tax withholding.
I thought the IRS was very picky about your not omitting income on this form. So if I have already filed a W4-V will somebody at the IRS check that? It seems there is some kind of penalty if you lie on this form? Also since I just retired my income will change drastically next year vs. this year since I had a job for 7 months of this year. Should I file another W4p for next year?
The IRS does not care *how* you pay your taxes throughout the year, but the IRS does care *that* you pay taxes throughout the year, based on how you earn your income.
So if you choose another way to pay taxes, it does not matter what you put on this form, as long as it's enough. For example, you can use IRS Form 1040-V, which is the quarterly payment voucher (see resources below), or you can make online payments through the IRS website.
The IRS will impose a penalty for not paying *enough* taxes throughout the year. You would use IRS Form 2210 when filing your tax return to determine whether you have a penalty, and to calculate it (see links below).
You can check your withholdings to determine whether you're withholding enough taxes by using the worksheet in the IRS Form 1040-ES instructions (see below). From there, you can increase withholdings on your Form W-4 if you need to.
IRS Form 1040-V, Payment Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-v-instructions/
Video: th-cam.com/video/Js3qWBaV-Lo/w-d-xo.html
IRS Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Article: www.teachmepersonalfinance.com/irs-form-2210-instructions/
Video: th-cam.com/video/9Mm1EI6BSjI/w-d-xo.html
Schedule AI Video: th-cam.com/video/MMbwYmZDMSw/w-d-xo.html
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Thanks for the information. I just retired from a job halfway through 2024 and I will receive a pension starting a month from now. I am still confused by the W4-P. I file taxes jointly with my wife, she is still working. We filed all 2023 income tax forms the first of 2024. When I fill out the W4-P do I need to include my wife's estimated income for 2024, despite the fact she has taxes taken out already from current job? I had taxes taken out of my job I worked in up to now, but that job just ended. I don't want too much withheld. Can't I just skip W-4P sections 2 and 3 and use section 4 c (additional withholdings) if I think I will be short, just to balance out taxes already take out first half of the year? Thanks in advance.
Generally, I would offer this suggestion:
1. File your Form W-4P and leave everything blank, unless you are confident that you are putting the correct information into each line. The form is designed well, but the instructions can be confusing. You can leave it blank, then make adjustments later on by refiling.
2. Complete the worksheet for IRS Form 1040-ES, Estimated Tax Voucher. This is probably the best way to estimate your tax liability for the year, and you should know whether you're on track or not.
3. If you need to withhold extra, simply refile Form W-4P with extra withholding (Line 4c).
Another option (and a preferable one, if your wife hasn't updated her Form W-4 in more than 2 years, would be to have her refile her W-4, then complete Steps 2 and 3 as outlined above. Below are links to Form 1040-ES and W-4 resources for more detail:
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
IRS Form W-4, Employee’s Withholding Certificate
Article: www.teachmepersonalfinance.com/irs-form-w-4-instructions/
Video: th-cam.com/video/a7qxsGYLtkU/w-d-xo.html
I am retiring at the end of this year 12-31-24. This is the last piece of required paperwork I am required to fill out and it is kicking me pretty good. Have not touched my W-4 since I entered federal service in 94. Not sure when I will start collecting Social Security or when I will draw from my TSP. So it sounds like I initially don’t enter anything for myself. My wife is a Federal worker with 25 years of service. This is her only income with a current W4 on file. Do I need to input her earnings in Step 2 (b)(I)? If so would that be her gross earnings for the year? Or am I way out of in left field? Sounds like it may be a piece of clay for a while until we get it ironed out. Any input would be appreciated. Thanks in advance.
Since you're planning for 2025 tax withholdings, you can leave everything blank (or enter your wife's earnings, if you wish). What I would recommend is that you allow the tax withholdings to take effect on your pension, then use the tax worksheet on IRS Form 1040-ES (see below) to determine if you're on track, or if you need to increase your withholdings.
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Thank you the walkthrough! I am working and my w4 takes enough out for my salary. My wife is now retired and receiving a pension. My question is if I fill out form w4p and in line b(i) I put in both her pension (50k) and my salary (100k) won’t I now have too much withheld in total? (150k showing on the w4p with taxes withheld and on my w4 showing 100k). Confused. Thanks in advance!
You should use the worksheet located in the Form 1040-ES instructions to help determine whether you are withholding too much:
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
I have just retired thi years and had wages from a job up until May. Do i need to report that as income on a W4p for a pension plan? I have been getting social security since then. This month I filled out a w4p for a small pension plan in which I reported both my work wages and social security. I am getting ready to fill out yet another w4p for another pension plan which is a little larger and probably won’t start distributions till December. So I am not sure what to report on the W4p for this pension. Do i still include my work wages, social security and other pension as income one?
Generally, I recommend that people estimate their taxes for the year, based upon what their earnings have been to this point. Below are some resources that will walk you through a couple of ways to do this:
How to use the IRS tax withholding estimator tool: th-cam.com/video/zXA4ut_OTzU/w-d-xo.html
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
You can use either of these methods to determine whether you're on track or not. From there, you can better understand whether you need to increase withholdings your W-4P (step 4c).
I would suggest either this or simply not entering any information on the form, then submitting it. Once you start seeing tax deductions from your pension/annuity payments, you can re-run the tax estimators (as done above), then determine if you're on track.
You should plan to rerun your tax projection for the entire year in the year after you retire. You might end up needing to recomplete Form W-4P for the following tax year.
I already filed withholding on my social security either W4V - given that do I need to include my social security income here ?
@@pjtrant You don't need to, and you probably shouldn't, if you've already accounted for it on Form W-4V. You can always check your withholdings and increase them if needed.
What about form W-4S for sick benefits? I have filed both this form and the w-4S for the sick benefits. I need to update the W-4P. Should I include the W2 figures on the W-4p form and remove the W-4S? If I want to increase the withholding do I add it to the 4c figure? Thank you.
Before making any changes, you might want to make sure that you're on track to withhold enough taxes this year. The best way to do that is to use the worksheet for IRS Form 1040-ES (see below).
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
From there, you can always increase withholdings manually if you need to. If you need to decrease withholdings, then I would start with making one change at a time.
My father is a veteran with 2 pensions and social security in California. My mother passed away in 2022 so 2023 was his first year filing single, he had to pay close to $8K. I saw below that you answered a similar question. Would you recommend the same, complete Step 2(b)(ii), Step 3, and Step 4 only for the highest paying one. The others, you can file, but leave Steps 2, 3, and 4 blank?
I would suggest starting with that. After the new adjustments kick in, then I would go through the estimated tax worksheet on IRS Form 1040-ES to see if any adjustments need to be made:
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
On a side note, if all things are equal (like your father's income), then your father probably will pay more in taxes than your parents used to. However, making these adjustments (and keeping an eye on whether additional adjustments are needed) will help him avoid having to pay a significant amount next tax season.
Thanks for what you are doing. I'm trying to help my mother fill out hers.. So, my parents are filing jointly. My mothers pension will be much less than what she gets from her social security income. She has no deductions, dependents, or any other income. I'm not really sure how to fill in sections 2-4...
I just put together a new video that walks people through what this type of situation might look like: th-cam.com/video/VZtYpcjKteY/w-d-xo.html
While this video walks through the steps of how the pension company must withhold taxes based on instruction, you might benefit from the second half of the video. This is a case study where we literally enter *zero* numbers on the entire form to see how this impacts tax withholdings. If this looks similar to your mother's situation, then you can consider starting with this, then using IRS Form 1040-ES to make sure that you're withholding enough in taxes for the entire tax year:
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
I am completing my w-4p filing joint and will start receiving pension checks; however, I will be working a job that pays more than my pension. What numbers do I enter in step 2?
You should calculate the figure that goes into Step 2(b)(i): If you (and/or your spouse) have one or more jobs, then enter the total taxable annual pay from all jobs, plus any income entered on Form W-4, Step 4(a), for the jobs less the deductions entered on Form W-4, Step 4(b), for the jobs.
I'm still not 100% sure about how to complete the W4P form. My husband gets SSI and I just started receiving a pension. They automatically put me in as "0" (single) for deductions. I would like to see how much more I would get in my check if I put "1". Does that make sense? Also, will I owe money at the end or will I be able to claim "2" on my taxes and get a refund? I hope what I'm asking is clear. Thank you for making the video.
It sounds like they might be offering you an old version of IRS Form W-4P, where you're supposed to enter the number of allowances. I would suggest watching this video and/or reading the article below on the current version (updated in 2022). If you have questions after having watched the video or read the article, then I'd be more than happy to try and help.
IRS Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments
Article: www.teachmepersonalfinance.com/irs-form-w-4p-instructions/
Video: th-cam.com/video/MQ72wKsJvFg/w-d-xo.html
@@teachmepersonalfinance Thank you!
Thanks, this is the best explainer I've found!! One very specific question I'd appreciate your expertise on is if I have calculated the amount I want withheld from my pension is it allowable just to put that amount in line 4c and put zeros on the rest of the form?
If you did this, you probably would not see the expected result. If you simply put zeros down the form (including Line 4c), then you would have *some* withholding. If you enter an amount in Line 4c, then you would see the same withholding *and* the additional withholding in Line 4c.
If you were going to use this plan, I would start with all zeros, wait for the next payment to hit, and recalculate using the worksheet in IRS Form 1040-ES (see below). From there, make any adjustments in Line 4c.
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
On a monthly basis, My husband gets 2 pensions from the trade unions he worked for before retiring, 1 small withdrawal from an IRA and social security. We found out that one of his union pensions had no Fed deductions, but the other pension, the IRA and the social security all had federal deductions.
In 2023 I got 1 pension with fed taxes taken out. But in 2024 I have changed the amount I get from the pension as I will be getting social security, also with fed deductions taken out.
Sadly we owe this year in filing the 2023 taxes, BUT when I filled out the worksheet, both online and in paper I get results that say we should be getting a refund.
Any hints to figure out how to fix for 2024?
I'm sorry for the late response.
You can always use the worksheet located in IRS Form 1040-ES to estimate your tax withholding and decide whether you need to make any changes to your tax deductions.
If you need to increase withholdings, you should be able to use the worksheet to estimate how much you need to adjust (per month, or pay period), then go into ONE Form W-4 to make that adjustment. Or you can simply use the worksheet to calculate how much you need to pay at the end of each quarter.
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Single, three pensions, $106.00,$272.00, 386.00 and SSI ! Do I fill out W-4p for each one in Ky.
Yes. I assume these pensions are monthly amounts.
If so, you would complete Step 2(b)(ii), Step 3, and Step 4 only for the highest paying one. The others, you can file, but leave Steps 2, 3, and 4 blank.
If you want tax withholdings on your SSI, you can do so on IRS Form W-4V (see below)
IRS Form W-4V, Voluntary Withholding Certificate
Article: www.teachmepersonalfinance.com/irs-form-w-4v-instructions/
Video: th-cam.com/video/jOVaAqOwL_Q/w-d-xo.html
After your withholdings kick in, I highly recommend that you use the worksheet in IRS Form 1040-ES (see below) to estimate your tax bill for the year. You can use this to see if you need to make adjustments (up or down) on any withholdings.
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
This is our situation: I am newly retired and will begin receiving a pension as of Sept. 2024. I will not be getting SS benefits at this time. My husband remains working with a regular salary. As I understand this form, I am to report his income on line 2b(i), even though his employer will be deducting withholding from his check. Why do I need to report his income when his employer will make the deduction and how does his income, as I report it on line 2b (i) impact my withholding, based on this form?
The new W-4P forms make adjustments for other income sources, such as your husband's job. If you don't put this information in, then your withholdings might be less accurate.
Of course, you don't have to put any information in there, if you don't want to. Either way, you might consider checking the accuracy of your withholdings after they take effect.
Below are some resources to help you do that, if you're interested. Of the two, I believe the worksheet for Form 1040-ES is more accurate.
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
How to use the IRS Tax Estimator Tool
th-cam.com/video/zXA4ut_OTzU/w-d-xo.html
This is giving me a headache. My mom is filling this out for her pension which comes out to about $2k a year. She also has social security and self employment income and married to my dad who files jointly. Should she just include my dads income from his job in line 2?
If I understand correctly, your parents have the following:
-Your mother's pension
-Your mother's Social Security
-Your mother's self-employment income
-Your father's job
You *can* try to see how to manipulate Form W-4P, then have the pension company apply the changes. You can also figure out whether it might be easier to withhold from another source of income, such as your mother's self-employment income, which she has complete control over.
In either case, you might want to see if any adjustments are warranted before making *any* changes. The best way (that I've found) is to use the worksheet for IRS Form 1040-ES:
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Once you've determined whether or not you need to make additional payments, you have some options. The IRS doesn't care *which* option you choose...the IRS just wants the money:
1. Send in the tax payment voucher from Form 1040-ES. This is the most 'old school' way. I used to have financial planning clients insist on doing this, but no one under the age of 65.
2. Make payments directly to the IRS on the IRS website: www.irs.gov/payments. If you do this, keep records of your payments so you don't forget come tax time. In fact, your mother may be doing this if her self-employment income is significant and she has to make estimated tax payments throughout the year.
3. Make the change as you outlined on Form W-4P.
4. Adjust your father's W-4, then include your mother's pension income on *his* withholding:
IRS Form W-4, Employee’s Withholding Certificate
Article: www.teachmepersonalfinance.com/irs-form-w-4-instructions/
Video: th-cam.com/video/a7qxsGYLtkU/w-d-xo.html
You can also withhold from your mother's Social Security payments on IRS Form W-4V:
IRS Form W-4V, Voluntary Withholding Certificate
Article: www.teachmepersonalfinance.com/irs-form-w-4v-instructions/
Video: th-cam.com/video/jOVaAqOwL_Q/w-d-xo.html
However, you can only choose specific percentages of withholding from Social Security: 7%, 10%, 12%, or 22%.
Hello, I am retired with social security being my only income. I'm supposed to get a pension of $374 per month through my union, starting on 9/1/24. The union asks me to fill the form W-P4. I live in Florida. I have no idea how to fill this form. Your help will be greatly appreciated. Thank you.
To start, I would say that you should watch the video in its entirety, as it explains the form step by step. If you already have watched the video, what specific questions do you have?
I am confused with this new form. My husband is still currently working but is applying for federal retirement. I get a federal annuity and SS payments and We always file jointly. In 2 B (i) are we adding his current salary and my annuity and SS? I don't get this at all. Or do I add my annuity in 2 B (ii) ?
I would use the worksheet in IRS Form 1040-ES to estimate your income and taxes for the year. You can use the worksheet to determine whether your current withholdings are enough, then you can make adjustments accordingly.
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
To answer your specific questions, I'll assume that you're completing this for your annuity:
In Line 2b(i), you should be entering the income from jobs only (as outlined on the form). For Line 2b(ii), you should add *other* pensions and annuities that are lower than this one, if there are any. If not, then don't enter anything here.
Don't include Social Security in this calculation. If you want to account for Social Security, then you should enter *taxable* Social Security in Line 4a.
If you're still stuck, then you might want to walk through the IRS withholding calculator: www.irs.gov/individuals/tax-withholding-estimator
Can i just take a IRA distribution at the end of the year in the amout for whatever taxes are due and withhold 100%.
You can do that if you wish. Any taxes that you overpaid will come back to you in the form of a tax refund when you file your return.
I need to just increase my withhold about $1200/year. So can I just fill out Step 1 then go to line 4C and put in $100 for each monthly payment and send that to where I want it paid from?
You can try this to start. But I would suggest keeping an eye on your statements to see if any additional adjustments are warranted after the withholdings kick in.
Ok, thank you so much.@@teachmepersonalfinance
2023 we underpaid $13,000...my wife pension was only withdrawing 8% on $80,000, plus we take IRA, SSA, etc....can I just fill out the W-4P and on line 4c add $1,500 per month(that's the amount needed)....do I have to add any other figures to the lines in the form?
You can start with that. After the new withholdings kick in, I would go back to see what the *true* difference is between the old withholding amount and the new (it might not be exactly $1,500 per month), then make adjustments accordingly.
I am being asked to fill out form W-4 P during the process of applying for my pension. I have already applied for Social Security and the application is being reviewed. My last day at my job is 6/30/24. My husband is self-employed and he submits estimated taxes for his jobs. He also gets Social Security, but no pension. Since I have no idea how much I will be getting for sure on my pension and Social Security can I just fill out step one and skip to step 5 then fill do an adjustment later when I know how much I will be getting
You can always do this. When the tax deductions start to kick in, then it might be worthwhile for you and your husband to calculate your estimated taxes (from all income sources) on the IRS Form 1040-ES worksheet. Below is a link to the article and video on how this works (you don't have to use the tax voucher to do the calculations on the worksheet inside the form instructions):
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
I am single, no other income or dependents. I just basically signed the form. Do I need to fill a W4v? I do not want to owe. I just get my annuity 1 time a month. I am getting a RRB annuity.
I don't know enough about your tax situation to specifically advise you what to do. However, I do suggest to everyone that you can do the following:
1. Wait until the withholding changes take place (based on how long it takes your payer to process your completed Form W-4P).
2. Compare your new withholdings to your old withholdings to see if you're on track to withhold the proper amount this year. There are a lot of methods to do this, but I usually advise people to use the worksheet located in the Form 1040-ES instructions (see below links).
3. Make adjustments as necessary. If you need additional withholding, then you can use the Extra Withholding block in Line 4c to do this (you don't need to complete a Form W-4V for another source of income).
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: th-cam.com/video/MqA_0OX9kxI/w-d-xo.html
Isn't there some simple way to have a set percentage of a pension payment withheld for Federal Income Taxes? For example, a monthly pension payment is $4000 and I want $800 (20%) withheld. (Filing status married filing jointly.). Thank you.
I would suspect that the calculation would be a matter of taking the annual pension amount, subtracting the standard deduction, and using the result as the taxable income. Then determining the Federal Tax on that taxable income and adding whatever is needed on line 4(c) Extra Withholding to to be $800 per month. Is this correct, or am I totally out of my mind?
@@skipglobal1305 If you took this approach, then you would end up withholding $800 per pay period (whether it's monthly or not) *in addition to* the withholding that your pension provider would end up having to calculate. While you can designate a specific percentage on IRS Form W-4R (see below), you might not be able to use it for your pension.
What you could do, though, is complete the form as instructed, then examine the difference between the new withholdings and old withholdings. Once you know the difference, then you can complete Form W-4P again (yep, that part kind of stinks), with the required additional holding in Line 4c.
IRS Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollovers
Article: www.teachmepersonalfinance.com/irs-form-w-4r-instructions/
Video: th-cam.com/video/Aa_n50wOA_I/w-d-xo.html
I am retired with a modest pension, social security, an annual IRA distribution, and interest income. I already have appropriate withholding on the SS and IRA distribution. I wanted to increase the withholding on my pension ONLY in 2024 to compensate for anticipated spike in interest income, from which there is NO withholding. Apparently, I made a mistake by interpreting SS income as another "pension or annuity" and putting it on W-4P line 2(b)(ii), which resulted in my former employer's pension administrator bumping my withholding up a lot higher than necessary. The pension admin company is hopeless to try talk to--opaque, passive-aggressive, etc. So, do you think I should resubmit another W-4P form, deleting the SS income on the form, see what happens?
From what I'm reading here, it seems that resubmitting another W-4P form without your Social Security income is your best opportunity to lower your tax withholdings. After the new withholdings take place, you can always re-evaluate to see if further adjustments are necessary.
when you say taxable social security, how you decide this?
Generally, the federal government will determine the taxability of your Social Security benefits based upon your combined income. Combined income is defined as: Adjusted Gross Income + Nontaxable Interest + Half of Your Social Security Benefits.
For single taxpayers:
If your combined income is below $25,000, your Social Security benefits are not taxable
If your combined income is between $25,000 and $34,000, 50% of your Social Security benefits are taxable.
If your combined income is above $34,000, 85% of your Social Security benefits are taxable.
For married taxpayers filing jointly:
If your combined income is below $32,000, your Social Security benefits are not taxable
If your combined income is between $32,000 and $44,000, 50% of your Social Security benefits are taxable.
If your combined income is above $44,000, 85% of your Social Security benefits are taxable.
Could you explain the Tip part under step 2
To clarify, we're discussing the following TIP as outlined in Step 2:
To be accurate, submit a new Form W-4P for all other pensions/annuities if you haven’t updated your withholding since 2021 or this is a new pension/annuity that pays less than the other(s). Submit a new Form W-4 for your job(s) if you have not updated your withholding since 2019.
In other words, the IRS changed the formats for Forms W-4 and W-4P a few years ago to allow for more accurate tax withholding. If your Form W-4 or W-4P that is currently on file (with your employer, pension provider, or other payer) is out of date (as indicated in the TIP wording), then you might want to submit a new form that may result in more accurate tax withholding.
@@teachmepersonalfinance Thank you
Hello, How can I contact you.?
No need to contact me separately. What's your question?
I have to fill W-4P, as survivor spouse, and return to his former employer.
Do I have to filling the total amount it's 50% of his annual income.?
Thank you!