Form W-4P, Withholding Certificate for Pension or Annuity Payments

About Form W-4P

Form W-4P is used by recipients of pensions, annuities, and certain other deferred compensation to tell the payer how much federal income tax to withhold. Because retirement income is generally taxable, withholding on these payments helps you avoid a large tax bill or underpayment penalty when you file your return.

You give the completed form to the company or plan that pays you, not to the IRS. The payer uses the information you provide, including your filing status and any additional amounts you request, to calculate the tax withheld from each periodic payment.

You can submit a new Form W-4P at any time to change your withholding, for example after a change in income, marriage, or other life event. If you do not submit a form, the payer withholds based on the default method described in the form instructions.

Who needs to complete it

• Retirees receiving periodic pension or annuity payments who want tax withheld.
• People who want to change the amount currently being withheld from retirement income.
• Recipients who expect to owe tax and want to avoid an underpayment penalty.
• Anyone whose filing status or income has changed and needs to update their withholding.

How to fill out Form W-4P

1. 1Enter your personal information, including your name, address, and Social Security number.
2. 2Select your filing status so the payer applies the correct withholding calculation.
3. 3Complete the sections for multiple pensions or a working spouse only if they apply to you.
4. 4Enter any dependents or other adjustments to income, deductions, or credits as directed.
5. 5Add any extra amount you want withheld from each payment if you want more tax taken out.
6. 6Follow the line-by-line instructions on the official form for any optional worksheets.
7. 7Sign and date the form, then give it to your pension or annuity payer.
8. 8Keep a copy for your records and submit an updated form whenever your situation changes.