topic I only had retirement income last year from two different sources: 401K, and a pension. Both 1099-R show that nothing was withheld for state taxes. I have to pay penalty? in Retirement tax questions

I only had retirement income last year from two different sources: 401K, and a pension. Both 1099-R show that nothing was withheld for state taxes. I have to pay penalty?

Flaresideman — Sat, 20 Mar 2021 19:23:57 GMT

TT shows I'll have to pay a penalty on my state tax return for underpayment of state taxes. No penalty on the federal return. To avoid the state return penalty next time, should I just adjust my W4 for a new job I just started to have enough state taxes withheld?

Re: I only had retirement income last year from two different sources: 401K, and a pension. Both ...

ToddL99 — Sat, 20 Mar 2021 19:26:02 GMT

Yes, you can help avoid underpayment penalties by adjusting your W-4 to increase state withholding.

You can also contact the plan administrators for your 401K and/or your pension and ask them to withhold state taxes. This might be a better solution if you are going to continue getting the retirement income but may not keep your "post-retirement" job.

Re: I only had retirement income last year from two different sources: 401K, and a pension. Both ...

Flaresideman — Sat, 20 Mar 2021 19:32:31 GMT

Great! thanks for advice!