W4 VS W4P Pension

[FlaSteve]

Hope I will get a short answer. I had a set amount deducted from my pension, since I retired in 2018. I had a flat rate easily set, using the W4, which could be altered as need be, from year to year. Now the W4-P is a different animal. I believe I have the info I need to accomplish the amount I want withheld, using the new form.

Example: I want a total of $200 withheld.

So Step 1, line c: status: married filing jointly.

The amount the payee (me) makes is $2190 monthly. The payor (who I get my pension from) calculates the withholding amount, using the Wage Bracket Method Tables from Publication 15-T. The corresponding withholding amount for $2180, married filing jointly, is $117.

I skip steps 2 and 3 as they do not apply.

Without specifying anything else, the total withholding would be $117, which is short $83 of what I want.

So, I go to Step 4 (c) and enter the “extra withholding” of $83. This will make the total withholding from my monthly pension, $200. Sign and done 😊

[Donna F 77]

Hi FlaSteve!  You are correct -- the W-4P is a different animal altogether.  You've definitely read the instructions.  You are determining how to fill out the form exactly right!  I think you may have an older version of the IRS Pub 15-T.  According to the new one (for 2022) the standard withholding would be $110 instead of $117.  Here's a link to it:

https://www.irs.gov/pub/irs-pdf/p15t.pdf

You're doing a great job filling out the Form W-4P.

[FlaSteve]

Critter-3 gave me some help on the Publication, it is correct for $2190, at $117 as its in the $2180-$2210 column. Double check me on that. I appreciate your kudos, and hope that it will get others the info in similar situations.

Thank you,

Steve