topic W-4P and form 1099 in Retirement tax questions

W-4P and form 1099

Anonymous — Tue, 24 Feb 2026 04:11:43 GMT

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!

Re: W-4P and form 1099

DMarkM1 — Wed, 19 Apr 2023 13:30:54 GMT

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.

Re: W-4P and form 1099

Anonymous — Wed, 19 Apr 2023 13:47:21 GMT

@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.