Ok, this one has me stumped, so any information would most definitely be appreciated. 🙂
I am single and took early retirement starting this month. Aside from Social Security, I will be getting a small monthly pension (approximately $260 per month). This month I started working part-time (minimum wage, and about 20 hours per week) at a friend's business. I will be receiving a 1099 form next year for income earned this year.
My question is this: the pension provider sent me a W-4P form to fill out and I'm at a loss on what to put down for Step 2, section (b)(i). Do I estimate how much I will be making this year and use that amount? Or do I put down zero because I'll be receiving a 1099 form and not a W-2?
Again, thank you in advance for any assistance you can provide!
Estimate your 1099 income and put that amount on line 2(b)(i) and 2(b)(iii). You might also consider adding 50% of your social security benefit to those lines as well.
The other option is no withholding on this pension but rather have withholding on your social security benefit as that may be your largest income source.
Estimate your 1099 income and put that amount on line 2(b)(i) and 2(b)(iii). You might also consider adding 50% of your social security benefit to those lines as well.
The other option is no withholding on this pension but rather have withholding on your social security benefit as that may be your largest income source.
@DMarkM1 Thank you so much for the reply!!
As you might have guessed, this is completely new territory for me. I'm glad I came here - I might have been in for a nasty surprise next year at tax time. O_O
Again, many thanks.