Annuity taxes

[twilight100]

Hi, I started collecting a monthly annuity in Jan 2024. The default on taxes taken out is 5%. I'd like to know how much it should be so I don't end up owing a lot in taxes come year end. I have a part-time job that withholds between 20% and 22% in taxes, if that helps you. And I was born in 1953. Thanks for your help!

[TeriH]

Great question!

TurboTax has a wonderful free online calculator that will help you answer that question.  

You will need to gather documentation (paystubs, previous tax return, invoices, etc.).  Follow the prompts to fill out the withholding calculator.  Then you will fill out your W-4 form for 2024.  It's important to understand this will be an adjustment going forward for 24.  You will want to revisit that for the full year 25.