JosephS1
Expert Alumni

Retirement tax questions

Several ways to accomplish this.  The line item you refer to on the W-4P wants to know the total you believe you will earn from both jobs for 2023.  Enter that total amount and continue.  While line (ii) asks for other lower pension amounts, my suggestion is to add both of what you are receiving as pension income to be sure not to be underwithheld.  Lines 3-4(b) need not be filled in and if you desire additional withholding enter that amount on line 4(c).

 

Now that we are all thoroughly confused by the new W-4's, there is another method that may give you a more accurate withholding calculation.  At the IRS website, at the W-4 screen they have a withholding tax calculator.  It is meant generally for people who are not collecting a pension but the pension income can be entered as a general "other" income item and the associated withholding as additional tax payments.  The total calculation and resulting withholding amounts take about 20 minutes to fill out but many have said it is worth the time.  I have given you a link below to the calculator.

 

You will find the calculator under the caption "Other Items You May Find Useful" and it is the third item in that list.

 

W-4 Instructions

 

@Elkhorn40 

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