I need to specify the withholding amount on the Form W-4P. This is not an additional amount. Do I use line 4c?

Yes, if you want to be sure an extra specific amount is taken from each check. The question is somewhat confusing because of your statement 'This is not an additional amount.' Line 4(c) is used for that specific purpose to help when not enough withholding is being taken.

 

If you know the extra amount you would like to have withheld for 2025, you can divide that by the total pay periods left in the tax year and enter that amount without changing any other change on your W-4P.

 

Please update if you have additional questions and we will help.

Hi Diane,

Thanks for the quick reply.

We were advised by the pension sponsor that they only want the specific dollar amount to

withhold. So this is not an additional amount, but they want a dollar amount. What line

would we use on the form?

Thanks

Got it.  You would still use that line on the W-4P for your amount. I would advise looking at your current return to see what your tax liability was, unless it's a drastic change next year. 

 

If you add your estimated income for 2025 and subtract your standard deduction for 2025, then take approximately 12-15% you should be good and you can change it as many times as you need to throughout the tax year.

• Tax Rate Schedules 2025 (You can look at these to see where you might fall in 2025 at the mid range).

Standard deduction amount increased. For 2025, the standard deduction amount has been increased for all filers:

Single or Married Filing Separately—$15,000.

Married Filing Jointly or Qualifying Surviving Spouse—$30,000.

Head of Household—$22,500.

• In 2025, the additional standard deduction is: Single filers and heads of household: $2,000, or $3,200 if both 65+ and blind. Joint filers and surviving spouses: $1,600, or $3,200 if both 65+ and blind.

@drunner