Tax withholding question for first year of retirement

Forum|Forum|2 months ago
May 13, 2026
1 reply
219 views

Hi. I received a federal tax refund and owed the state of MA money for 2025. While I am making estimated tax payments to the state, I don't know how to calculate any potential estimated federal tax payments given the significant change in my federally taxable income. While federal taxes are being withheld from my pension, I will have untaxed investment and SS income. I know about the safe harbor rules, but my federal taxes were over $20K last year and I don't want to make estimated payments based on this! What should I do? Thanks, Dave

Ask the Experts - W4 - May 2026

KatieP1

Employee Tax Expert

I advise you to run your numbers through the IRS Tax Withholding Estimator. The interview will walk you through your entire tax situation, including your pension, Social Security and investment income, and it will give you a better idea on the following:

How to adjust your pension withholding: This is often the easiest way to pay, as you can use Form W-4P to have the tax taken out automatically.
Adjust your Social Security withholding: You can submit Form W-4V to the Social Security Administration if you’d prefer they take a flat percentage (7%, 10%, 12%, or 22%) out of your checks.
Make quarterly estimated payments: If the withholding from your pension and Social Security still isn't enough to cover your taxes on the investment income, the tool will give you an idea of how much you need to pay in each quarter.

Thanks Dave, and happy retirement!

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