Line 4(b) on Form W-4P

Forum|Forum|3 years ago
February 26, 2023
1 reply
0 views

What does line 4(b) on Form W-4P mean to my employer? Does this value mean for my employer to deduct this amount from my pension annually?

DawnC

Level 15

You fill out Form W-4P so your payer can withhold the correct amount of federal income tax from your periodic pension, annuity (including commercial annuities), profit-sharing and stock bonus plan, or individual retirement arrangement (IRA) payments. The form goes to whoever sends you your pension payments. You enter annual amounts on the form and the payer will make the adjustments to your periodic (usually monthly) payments.

In Step 4, you can adjust the amount of taxes the payer will withhold. These are optional adjustments. If you claim deductions on 4b and therefore have lower taxable income, you can enter the amount of those deductions (annual amount) so less tax is withheld from your payments. The net payment you receive each month will be larger than if you don't enter anything on 4b.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

terrifict1953Author

Level 2

Thank you, Dawn, but it didn't quite answer my question the way that I can understand it. If I place $12,000 on Line 4(b), is this the total amount of federal taxes my payer will take out of my annual payments, divided by 12. In other words, would my payer take out a total of $1,000 each month to satisfy the $12,000 amount on Line 4(b)? Also, can I leave every line on my W-4P blank EXCEPT Line 4(c), and will this amount tell my payer that I want that amount to be added to my current withholding each month? In other words, if I place $1,000 on Line 4(c) and no other entries on any other line, will the payer take an additional $1,000 out for federal taxes each month in addition to what is already being taken out each month? I receive monthly pensions/annuities.

Thank you.

JulieS

Level 15

No, you don't want to use line 4(b) to get the withholding you want. This is used to help them figure your withholding if you itemize. Any number there will reduce withholding.

You can leave lines 4(a) and 4(b) blank and enter $1000 on line 4(c). They will take out an additional $1000 per month (assuming you are paid monthly).

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"