Yes you fill it out. They want to know how much tax withholding you want taken out. Like 10% or 20% or nothing. It’s not the actual tax due on the pension, it’s just an estimated withholding amount. You still have to enter the total gross pension on your tax return to figure the tax on all your income. Then you will get credit for the withholding taken out giving you a refund or tax due for more.
Do you get Social Security Disability? It might not be taxable. Is the pension and disability the only income you have? If your total income is less than $15,750 (17,750 if over 65) it is not taxable and you don’t have to file a tax return except to get back any withholding taken out.
