I am a widow receiving an annuity based on my late husband's military pension. In 2021 tax withheld was $848. In 2022 tax withheld was $87 in Jan, and zero in subsequent months. (And yes, I kick myself for not realizing the change.)
The fed agency (Defense Financial & Accounting Services) that processes annuity payments explained that in Feb 2022, a new law required IRS to publish a new "tax chart" which DFAS used to adjust amount withheld to zero. So, while my W4 status remained the same, the amount withheld changed to zero. DFAS also indicated IRS reversed - rescinded its "tax chart" and put in a new "tax chart" but apparently did not resume withholding to where it should be. And oh yes, numerous annuitants have been caught off guard. The worst part is no one is talking about this, at least that I can find by searching various fora online.
I need help answering:
> where do I find this IRS "tax chart"?
> how do I fix this going forward so that an appropriate amount is withheld?
> will I be slammed with a penalty for under withholding?
I greatly appreciate any help given on this forum.
