by Roger Chartier

Form W-4 P

Withholding Certificate For Pension And Annuity Payments

The W-4P form is used to do what the subtitle says it will do - but to explain it a bit further.

I can say that it's purpose is essentially for U.S. citizens, resident aliens, or their estates who are recipients of pensions, annuities (including commercial annuities) and certain other deferred compensation.

Similar to the regular W4 form, it wants to know how much to take out for taxes. However in this case it is referring to a different income than the regular W4 refers to.

This form is designed to tell payers the proper amount of Federal Income Tax to withhold from your payment(s). If you like you can decide to tell the payer not to withhold tax except for elligible rollover distributions or payments to U.S. citizens delivered outside the US or possesions.

On the other hand, you can ask to have more tax than usual withheld.





Personal Allowances Worksheet

On this top section (middle section of page 1) you have groups A through G of personal allowances to fill out.

Then comes the simple part of the form - the typical name, address, etc. part that is an easy section.

Deductions and Adjustments Worksheet

Is on the next page. There you have ten sections to choose to fill out.This is a little time consuming but not too bad.
In some cases it could be optional.

Multiple Pensions / More Than One Income Worksheet

The bottom of the section has two handy tables of income levels indicating where you would apply a number indicating your range of income. 

Each group of tables has income levels.

The first secion of each table is for Married Filing Jointly and the other table is for All Others.

The pages numbered three and four are only an extension of the available instructions for the form.

These are to make it clearer for the person who is in doubt about what to do as far as filling it out is concerned.