IRS Form W-4P "Withholding Certificate for Pension or Annuity Payments"

What Is W-4P Form?

IRS Form W-4P, Withholding Certificate for Pension or Annuity Payments, also known as the "pension withholding tax form", is a document used by U.S. citizens, resident aliens, and their estates who receive annuities, pensions, and other deferred compensation to inform payers of the accurate amount of the federal income tax to be withheld from the payments. Additionally, it is possible to choose not to have any income tax withheld from the payment or to have an additional amount of tax withheld. Usually, federal income tax withholding applies to the taxable payments made from profit-sharing, annuity, pension, stock bonus, commercial annuities, and deferred compensation plans.

The form is renewed every year. The latest version of the form was released by the Internal Revenue Service (IRS) in 2020 with all previous editions obsolete. A fillable W-4P Form is available for download below. If you claimed exemption from federal income tax withholding the previous calendar year, you must file a new form by February 15 to prolong your exemption for another year. The IRS recommends submitting a new IRS W-4 Form each year and every time your financial or personal situation undergoes a change.

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How to Fill out W-4P Form?

  • If you have a complicated tax situation, for example, you have a working spouse, a large income outside your pensions, or there is more than one annuity or pension, you can use the calculator at the IRS official website to determine your tax withholding accurately;
  • The IRS W-4P Form includes three worksheets - Personal Allowances Worksheet, Deductions, Adjustments, and Additional Income Worksheet, and Multiple Pensions/More-Than-One-Income Worksheet. You can use them instead of a calculator to determine the number of withholding allowances you need to claim;
  • Once you file the form, it will stay in effect until a new form is submitted. You have a right to submit a new document once your life situation changes and you refigure your withholding, for example, when you retire and your pension is now your only source of income, you can claim an additional allowance;
  • There are periodic payments for which you cannot use this form. Retirement pay for service in the Armed Forces, tax-exempt organizations' deferred compensation plans, and payments from nonqualified deferred compensation plans are already defined as wages subject to income tax withholding. Ask your payer whether the pension withholding tax form applies.

W-4P Form Instructions

Instructions for Form W-4P are as follows:

  1. Enter your full name and your social security number;
  2. State your home address;
  3. Write down the claim or the identification number that belongs to your annuity or pension contract;
  4. Indicate if you do not want federal income tax withheld from your annuity or pension;
  5. State total number of allowances and marital status you claim for withholding from each annuity payment or periodic payment. There are three options - single, married, married, but withhold at a higher single rate;
  6. Write down the additional amount you want to be withheld from each annuity payment or pension;
  7. Sign and date the form.

IRS W-4P Related Forms:

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Download IRS Form W-4P "Withholding Certificate for Pension or Annuity Payments"

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W-4P
Withholding Certificate for
OMB No. 1545-0074
Form
2020
Pension or Annuity Payments
Department of the Treasury
Internal Revenue Service
Future developments. For the latest information about any
unless you make timely payments of estimated tax. If too much
tax is withheld, you will generally be due a refund when you file
future developments related to Form W‐4P, such as legislation
enacted after it was published, go to www.irs.gov/FormW4P.
your tax return.
Filers with multiple pensions or more than one income. If you
Purpose of form. Form W‐4P is for U.S. citizens, resident
aliens, or their estates who are recipients of pensions, annuities
have more than one source of income subject to withholding
(including commercial annuities), and certain other deferred
(such as more than one pension or a pension and a job, or
you’re married filing jointly and your spouse is working), read all
compensation. Use Form W‐4P to tell payers the correct
amount of federal income tax to withhold from your payment(s).
of the instructions, including the instructions for the Multiple
You may also use Form W‐4P to choose (a) not to have any
Pensions/More‐Than‐One‐Income Worksheet, before beginning.
federal income tax withheld from the payment (except for
Other income. If you have a large amount of income from other
eligible rollover distributions or for payments to U.S. citizens to
sources not subject to withholding (such as interest, dividends,
be delivered outside the United States or its possessions), or (b)
or capital gains), consider making estimated tax payments using
to have an additional amount of tax withheld.
Form 1040‐ES, Estimated Tax for Individuals. Otherwise, you
Your options depend on whether the payment is periodic,
might owe additional tax. See Pub. 505, Tax Withholding and
nonperiodic, or an eligible rollover distribution, as explained on
Estimated Tax, for more information. Get Form 1040‐ES and
pages 2 and 3. Your previously filed Form W‐4P will remain in
Pub. 505 at www.irs.gov/FormsPubs. Or, you can use the
effect if you don’t file a Form W‐4P for 2020.
Deductions, Adjustments, and Additional Income Worksheet on
page 5 or the estimator at www.irs.gov/W4App to make sure
General Instructions
you have enough tax withheld from your payments. If you have
income from wages, see Pub. 505 or use the estimator at
Section references are to the Internal Revenue Code.
www.irs.gov/W4App to find out if you should adjust your
Follow these instructions to determine the number of
withholding on Form W‐4 or Form W‐4P.
withholding allowances you should claim for pension or annuity
Note: Social security and railroad retirement payments may be
payment withholding for 2020 and any additional amount of tax
includible in income. See Form W‐4V, Voluntary Withholding
to have withheld. Complete the worksheet(s) using the taxable
Request, for information on voluntary withholding from these
amount of the payments.
payments.
If you don’t want any federal income tax withheld (see
Withholding From Pensions and Annuities
Purpose of form, earlier), you can skip the worksheets and go
directly to the Form W‐4P below.
Generally, federal income tax withholding applies to the taxable
Sign this form. Form W‐4P is not valid unless you sign it.
part of payments made from pension, profit-sharing, stock bonus,
You can also use the estimator at www.irs.gov/W4App to
annuity, and certain deferred compensation plans; from individual
retirement arrangements (IRAs); and from commercial annuities.
determine your tax withholding more accurately. Consider using
The method and rate of withholding depend on (a) the kind of
this estimator if you have a more complicated tax situation, such
payment you receive; (b) whether the payments are to be delivered
as if you have more than one pension or annuity, a working
outside the United States or its possessions; and (c) whether the
spouse, or a large amount of income outside of your pensions.
recipient is a nonresident alien individual, a nonresident alien
After your Form W‐4P takes effect, you can also use this estimator
beneficiary, or a foreign estate. Qualified distributions from a
to see how the amount of tax you’re having withheld compares to
designated Roth account or Roth IRA are nontaxable and,
your projected total tax for 2020. If you use the estimator, you
therefore, not subject to withholding. See page 3 for special
don’t need to complete any of the worksheets for Form W‐4P.
withholding rules that apply to payments to be delivered outside
Note that if you have too little tax withheld, you will generally
the United States and payments to foreign persons.
owe tax when you file your tax return and may owe a penalty
Separate here and give Form W-4P to the payer of your pension or annuity. Keep the worksheet(s) for your records.
W-4P
Withholding Certificate for
OMB No. 1545-0074
Form
Pension or Annuity Payments
2020
Department of the Treasury
For Privacy Act and Paperwork Reduction Act Notice, see page 6.
Internal Revenue Service
Your social security number
Your first name and middle initial
Last name
Claim or identification number
Home address (number and street or rural route)
(if any) of your pension or
annuity contract
City or town, state, and ZIP code
Complete the following applicable lines.
1 Check here if you do not want any federal income tax withheld from your pension or annuity. (Don’t complete line 2 or 3.)
2 Total number of allowances and marital status you’re claiming for withholding from each periodic pension or annuity
payment. (You may also designate an additional dollar amount on line 3.) .
.
.
.
.
.
.
.
.
.
.
.
.
.
Marital status:
Single
Married
Married, but withhold at higher Single rate.
(Enter number
of allowances.)
3 Additional amount, if any, you want withheld from each pension or annuity payment. (Note: For periodic payments,
you can’t enter an amount here without entering the number (including zero) of allowances on line 2.) .
.
.
.
$
Your signature
Date
W-4P
Form
(2020)
Cat. No. 10225T
W-4P
Withholding Certificate for
OMB No. 1545-0074
Form
2020
Pension or Annuity Payments
Department of the Treasury
Internal Revenue Service
Future developments. For the latest information about any
unless you make timely payments of estimated tax. If too much
tax is withheld, you will generally be due a refund when you file
future developments related to Form W‐4P, such as legislation
enacted after it was published, go to www.irs.gov/FormW4P.
your tax return.
Filers with multiple pensions or more than one income. If you
Purpose of form. Form W‐4P is for U.S. citizens, resident
aliens, or their estates who are recipients of pensions, annuities
have more than one source of income subject to withholding
(including commercial annuities), and certain other deferred
(such as more than one pension or a pension and a job, or
you’re married filing jointly and your spouse is working), read all
compensation. Use Form W‐4P to tell payers the correct
amount of federal income tax to withhold from your payment(s).
of the instructions, including the instructions for the Multiple
You may also use Form W‐4P to choose (a) not to have any
Pensions/More‐Than‐One‐Income Worksheet, before beginning.
federal income tax withheld from the payment (except for
Other income. If you have a large amount of income from other
eligible rollover distributions or for payments to U.S. citizens to
sources not subject to withholding (such as interest, dividends,
be delivered outside the United States or its possessions), or (b)
or capital gains), consider making estimated tax payments using
to have an additional amount of tax withheld.
Form 1040‐ES, Estimated Tax for Individuals. Otherwise, you
Your options depend on whether the payment is periodic,
might owe additional tax. See Pub. 505, Tax Withholding and
nonperiodic, or an eligible rollover distribution, as explained on
Estimated Tax, for more information. Get Form 1040‐ES and
pages 2 and 3. Your previously filed Form W‐4P will remain in
Pub. 505 at www.irs.gov/FormsPubs. Or, you can use the
effect if you don’t file a Form W‐4P for 2020.
Deductions, Adjustments, and Additional Income Worksheet on
page 5 or the estimator at www.irs.gov/W4App to make sure
General Instructions
you have enough tax withheld from your payments. If you have
income from wages, see Pub. 505 or use the estimator at
Section references are to the Internal Revenue Code.
www.irs.gov/W4App to find out if you should adjust your
Follow these instructions to determine the number of
withholding on Form W‐4 or Form W‐4P.
withholding allowances you should claim for pension or annuity
Note: Social security and railroad retirement payments may be
payment withholding for 2020 and any additional amount of tax
includible in income. See Form W‐4V, Voluntary Withholding
to have withheld. Complete the worksheet(s) using the taxable
Request, for information on voluntary withholding from these
amount of the payments.
payments.
If you don’t want any federal income tax withheld (see
Withholding From Pensions and Annuities
Purpose of form, earlier), you can skip the worksheets and go
directly to the Form W‐4P below.
Generally, federal income tax withholding applies to the taxable
Sign this form. Form W‐4P is not valid unless you sign it.
part of payments made from pension, profit-sharing, stock bonus,
You can also use the estimator at www.irs.gov/W4App to
annuity, and certain deferred compensation plans; from individual
retirement arrangements (IRAs); and from commercial annuities.
determine your tax withholding more accurately. Consider using
The method and rate of withholding depend on (a) the kind of
this estimator if you have a more complicated tax situation, such
payment you receive; (b) whether the payments are to be delivered
as if you have more than one pension or annuity, a working
outside the United States or its possessions; and (c) whether the
spouse, or a large amount of income outside of your pensions.
recipient is a nonresident alien individual, a nonresident alien
After your Form W‐4P takes effect, you can also use this estimator
beneficiary, or a foreign estate. Qualified distributions from a
to see how the amount of tax you’re having withheld compares to
designated Roth account or Roth IRA are nontaxable and,
your projected total tax for 2020. If you use the estimator, you
therefore, not subject to withholding. See page 3 for special
don’t need to complete any of the worksheets for Form W‐4P.
withholding rules that apply to payments to be delivered outside
Note that if you have too little tax withheld, you will generally
the United States and payments to foreign persons.
owe tax when you file your tax return and may owe a penalty
Separate here and give Form W-4P to the payer of your pension or annuity. Keep the worksheet(s) for your records.
W-4P
Withholding Certificate for
OMB No. 1545-0074
Form
Pension or Annuity Payments
2020
Department of the Treasury
For Privacy Act and Paperwork Reduction Act Notice, see page 6.
Internal Revenue Service
Your social security number
Your first name and middle initial
Last name
Claim or identification number
Home address (number and street or rural route)
(if any) of your pension or
annuity contract
City or town, state, and ZIP code
Complete the following applicable lines.
1 Check here if you do not want any federal income tax withheld from your pension or annuity. (Don’t complete line 2 or 3.)
2 Total number of allowances and marital status you’re claiming for withholding from each periodic pension or annuity
payment. (You may also designate an additional dollar amount on line 3.) .
.
.
.
.
.
.
.
.
.
.
.
.
.
Marital status:
Single
Married
Married, but withhold at higher Single rate.
(Enter number
of allowances.)
3 Additional amount, if any, you want withheld from each pension or annuity payment. (Note: For periodic payments,
you can’t enter an amount here without entering the number (including zero) of allowances on line 2.) .
.
.
.
$
Your signature
Date
W-4P
Form
(2020)
Cat. No. 10225T
2
Form W-4P (2020)
Page
Because your tax situation may change from year to year, you
you’re single claiming zero withholding allowances even if you
may want to refigure your withholding each year. You can
checked the box on line 1 to have no federal income tax
change the amount to be withheld by using lines 2 and 3 of
withheld.
Form W-4P.
There are some kinds of periodic payments for which you
Choosing not to have income tax withheld. You (or in the
can’t use Form W-4P because they’re already defined as wages
event of death, your beneficiary or estate) can choose not to
subject to federal income tax withholding. These payments
have federal income tax withheld from your payments by using
include retirement pay for service in the U.S. Armed Forces and
line 1 of Form W-4P. For an estate, the election to have no
payments from certain nonqualified deferred compensation
income tax withheld may be made by the executor or personal
plans and tax-exempt organizations’ deferred compensation
plans described in section 457. Your payer should be able to tell
representative of the decedent. Enter the estate’s employer
identification number (EIN) in the area reserved for “Your social
you whether Form W-4P applies.
security number” on Form W-4P.
For periodic payments, your Form W-4P stays in effect until
You may not make this choice for eligible rollover distributions.
you change or revoke it. Your payer must notify you each year
of your right to choose not to have federal income tax withheld
See Eligible rollover distribution—20% withholding below.
(if permitted) or to change your choice.
Caution: There are penalties for not paying enough federal
income tax during the year, either through withholding or
Nonperiodic payments—10% withholding. Your payer must
estimated tax payments. New retirees, especially, should see
withhold at a flat 10% rate from the taxable amount of
nonperiodic payments (but see Eligible rollover distribution—
Pub. 505. It explains your estimated tax requirements and
describes penalties in detail. You may be able to avoid quarterly
20% withholding below) unless you choose not to have federal
estimated tax payments by having enough tax withheld from
income tax withheld. Distributions from an IRA that are payable
your pension or annuity using Form W-4P.
on demand are treated as nonperiodic payments. You can
choose not to have federal income tax withheld from a
Periodic payments. Withholding from periodic payments of a
nonperiodic payment (if permitted) by submitting Form W-4P
pension or annuity is figured using certain withholding tables
(containing your correct SSN) to your payer and checking the
that are also used to figure withholding from wages. Periodic
box on line 1. However, see Payments to Foreign Persons and
payments are made in installments at regular intervals over a
Payments To Be Delivered Outside the United States on page 3.
period of more than 1 year. They may be paid annually,
Generally, your choice not to have federal income tax withheld
quarterly, monthly, etc.
will apply to any later payment from the same plan. You can’t
If you want federal income tax to be withheld, you must
use line 2 for nonperiodic payments. But you may use line 3 to
designate the number of withholding allowances on line 2 of
specify an additional amount that you want withheld.
Form W-4P and indicate your marital status by checking the
Caution: If you submit a Form W-4P that doesn’t contain your
appropriate box. You can’t designate a specific dollar amount to
correct SSN, the payer can’t honor your request not to have
be withheld. However, you can designate an additional amount
income tax withheld and must withhold 10% of the payment for
to be withheld on line 3.
federal income tax.
If you don’t want any federal income tax withheld from your
Eligible rollover distribution—20% withholding. Distributions
periodic payments, check the box on line 1 of Form W-4P and
you receive from qualified pension or annuity plans (for
submit the form to your payer. However, see Payments to
example, 401(k) plans and section 457(b) plans maintained by a
Foreign Persons and Payments To Be Delivered Outside the
governmental employer) or tax-sheltered annuities that are
United States on page 3.
eligible to be rolled over to an IRA or qualified plan are subject
Caution: If you don’t submit Form W-4P to your payer, the
to a flat 20% federal withholding rate on the taxable amount of
payer must withhold from periodic payments as if you’re
the distribution. The 20% withholding rate is required, and you
married claiming three withholding allowances. Generally, this
can’t choose not to have income tax withheld from eligible
means that tax will be withheld if the taxable amount of your
rollover distributions. Don’t give Form W-4P to your payer
pension or annuity is at least $2,095 a month.
unless you want an additional amount withheld. In that case,
If you submit a Form W-4P that doesn’t contain your correct
complete line 3 of Form W-4P and submit the form to your
social security number (SSN), the payer must withhold as if
payer.
3
Form W-4P (2020)
Page
Specific Instructions
Note: The payer won’t withhold federal income tax if the entire
distribution is transferred by the plan administrator in a direct
Personal Allowances Worksheet
rollover to a traditional IRA or another eligible retirement plan (if
allowed by the plan), such as a 401(k) plan, qualified pension
Complete this worksheet on page 4 first to determine the
plan, governmental section 457(b) plan, section 403(b) contract,
number of withholding allowances to claim.
or tax-sheltered annuity.
Line C. Head of household please note: Generally, you can
Distributions that are (a) required by federal law, (b) one of a
claim head of household filing status on your tax return only if
specified series of equal payments, or (c) qualifying “hardship”
you’re unmarried and pay more than 50% of the costs of
distributions are not “eligible rollover distributions” and aren’t
keeping up a home for yourself and a qualifying individual. See
subject to the mandatory 20% federal income tax withholding.
Pub. 501 for more information about filing status.
See Pub. 505 for details. See also Nonperiodic payments—10%
Line D. Child tax credit. When you file your tax return, you may
withholding on page 2.
be eligible to claim a child tax credit for each of your eligible
Tax relief for victims of terrorist attacks. For tax years ending
children. To qualify, the child must be under age 17 as of
after September 10, 2001, disability payments for injuries
December 31, must be your dependent who generally lives with
incurred as a direct result of a terrorist attack directed against the
you for more than half the year, and must have the required SSN.
United States (or its allies), whether outside or within the United
To learn more about this credit, see Pub. 972, Child Tax Credit
States, aren’t included in income. You may check the box on line
and Credit for Other Dependents. To reduce the tax withheld
1 of Form W-4P and submit the form to your payer to have no
from your payments by taking this credit into account, follow the
federal income tax withheld from these disability payments.
instructions on line D of the worksheet. On the worksheet, you
However, you must include in your income any amounts that you
will be asked about your total income. For this purpose, total
received or would’ve received in retirement had you not become
income includes all of your pensions, wages, and other income,
disabled as a result of a terrorist attack. See Pub. 3920, Tax
including income earned by a spouse if you’re filing a joint return.
Relief for Victims of Terrorist Attacks, for more details.
Line E. Credit for other dependents. When you file your tax
Changing Your “No Withholding” Choice
return, you may be eligible to claim a credit for other dependents
for whom a child tax credit can’t be claimed, such as a qualifying
Periodic payments. If you previously chose not to have federal
child who does not meet the age or SSN requirement for the
income tax withheld and you now want withholding, complete
child tax credit, or a qualifying relative. To learn more about this
another Form W-4P and submit it to your payer. If you want
credit, see Pub. 972. To reduce the tax withheld from your
federal income tax withheld at the 2020 default rate (married
payments by taking this credit into account, follow the
with three allowances), write “Revoked” next to the checkbox
instructions on line E of the worksheet. On the worksheet, you
on line 1 of the form. If you want tax withheld at a different rate,
will be asked about your total income. For this purpose, total
complete line 2 on the form.
income includes all of your pensions, wages, and other income,
Nonperiodic payments. If you previously chose not to have
including income earned by a spouse if you’re filing a joint return.
federal income tax withheld and you now want withholding,
Line F. Other credits. You may be able to reduce the tax
write “Revoked” next to the checkbox on line 1 and submit the
withheld from your payments if you expect to claim other tax
Form W-4P to your payer.
credits, such as tax credits for education (discussed in Pub.
Payments to Foreign Persons and Payments
970). If you do so, your payments will be larger, but the amount
To Be Delivered Outside the United States
of any refund that you receive when you file your tax return will
be smaller. Follow the instructions for the worksheet for
Unless you’re a nonresident alien, withholding (in the manner
converting credits to allowances in Pub. 505 if you want to
described above) is required on any periodic or nonperiodic
reduce your withholding by taking these credits into account. If
payments that are to be delivered to you outside the United
you compute all your credits using that worksheet in Pub. 505,
States or its possessions. Don’t check the box on line 1 of Form
enter “-0-” on lines D and E.
W-4P. See Pub. 505 for details.
Deductions, Adjustments, and Additional
In the absence of a tax treaty exemption, nonresident aliens,
Income Worksheet
nonresident alien beneficiaries, and foreign estates are generally
subject to a 30% federal withholding tax under section 1441 on
Complete this worksheet to determine if you’re able to reduce
the taxable portion of a periodic or nonperiodic pension or
the tax withheld from your pension or annuity payments to
annuity payment that is from U.S. sources. However, most tax
account for your itemized deductions and other adjustments to
treaties provide that private pensions and annuities are exempt
income, such as deductible IRA contributions. If you do so, your
from withholding and tax. Also, payments from certain pension
refund at the end of the year will be smaller, but your payments
plans are exempt from withholding even if no tax treaty applies.
will be larger. You’re not required to complete this worksheet or
See Pub. 515, Withholding of Tax on Nonresident Aliens and
reduce your withholding if you don’t wish to do so.
Foreign Entities, and Pub. 519, U.S. Tax Guide for Aliens, for
You can also use this worksheet to figure out how much to
details. A foreign person should submit Form W-8BEN,
increase the tax withheld from your payments if you have a large
Certificate of Foreign Status of Beneficial Owner for United
amount of other income not subject to withholding, such as
States Tax Withholding and Reporting, to the payer before
interest, dividends, or capital gains.
receiving any payments. The Form W-8BEN must contain the
Another option is to take these items into account and make
foreign person’s taxpayer identification number (TIN).
your withholding more accurate by using the estimator at
Statement of Federal Income Tax Withheld
www.irs.gov/W4App. If you use the estimator, you don’t need to
From Your Pension or Annuity
complete any of the worksheets for Form W‐4P.
Multiple Pensions/More‐Than‐One‐Income
By February 1 of next year, your payer will furnish a statement
to you on Form 1099-R, Distributions From Pensions, Annuities,
Worksheet
Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts,
Complete this worksheet if you receive more than one pension,
etc., showing the total amount of your pension or annuity
if you have a pension and a job, or if you’re married filing jointly
payments and the total federal income tax withheld during the
and have a working spouse or a spouse who receives a
year. If you’re a foreign person who has provided your payer
pension. If you don’t complete this worksheet, you might have
with Form W-8BEN, your payer instead will furnish a statement
too little tax withheld. If so, you will generally owe tax when you
to you on Form 1042-S, Foreign Person’s U.S. Source Income
file your tax return and may be subject to a penalty.
Subject to Withholding, by March 15 of next year.
4
Form W-4P (2020)
Page
Use the Multiple Pensions/More-Than-One-Income
any allowances after lines A through B in the Personal
Worksheet from only one Form W-4P to figure the number of
Allowances Worksheet or any allowances in the Deductions,
allowances you’re entitled to claim and any additional amount of
Adjustments, and Additional Income Worksheet. However, you
tax to withhold from all pensions. If you (and/or your spouse if
may need to use the Multiple Pensions/More-Than-One-Income
filing jointly) have two or more pensions, withholding will
Worksheet. If you (and/or your spouse if filing jointly) have more
generally be more accurate if only the Form W-4P for the
than one pension (or a pension and a job) and you need to
highest paying pension (a) claims any allowances after lines A
complete a new Form W-4P or Form W-4 for a pension or a job,
through B in the Personal Allowances Worksheet or any
you (and/or your spouse) will generally get more accurate
allowances in the Deductions, Adjustments, and Additional
withholding by completing new Form(s) W-4P or Form(s) W-4 for
Income Worksheet; and (b) uses the Multiple Pensions/More-
all other pensions and jobs. See Pub. 505 for details.
Than-One-Income Worksheet. If you (and/or your spouse if filing
Another option is to use the estimator at www.irs.gov/W4App
jointly) have a pension and a job, withholding will generally be
to figure your withholding more precisely.
more accurate if the Form W-4P for the pension doesn’t claim
Personal Allowances Worksheet (Keep for your records.)
A Enter “2” for yourself .
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A
B Enter “1” if you will file as married filing jointly
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B
C Enter “1” if you will file as head of household .
C
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D Child tax credit. See Pub. 972 for more information.
• If your total income will be less than $72,351 ($105,051 if married filing jointly), enter “4” for each eligible child.
• If your total income will be from $72,351 to $181,950 ($105,051 to $351,400 if married filing jointly), enter “2” for
each eligible child.
• If your total income will be from $181,951 to $200,000 ($351,401 to $400,000 if married filing jointly), enter “1” for
each eligible child.
D
• If your total income will be higher than $200,000 ($400,000 if married filing jointly), enter “-0-” .
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E Credit for other dependents. See Pub. 972 for more information.
• If your total income will be less than $72,351 ($105,051 if married filing jointly), enter “1” for each eligible
dependent.
• If your total income will be from $72,351 to $181,950 ($105,051 to $351,400 if married filing jointly), enter “1” for
every two dependents (for example, “-0-” for one dependent, “1” if you have two or three dependents, and “2” if
you have four dependents).
• If your total income will be higher than $181,950 ($351,400 if married filing jointly), enter “-0-” .
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E
F Other credits. If you have other credits, see the worksheet for converting credits to allowances in Pub. 505 and
enter the amount from that worksheet here. If you compute all your credits using that worksheet in Pub. 505, enter
F
“-0-” on lines D and E
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G Add lines A through F and enter the total here
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G
{
• If you plan to itemize or claim adjustments to income and want to reduce your withholding, or
if you have a large amount of other income not subject to withholding and want to increase your
withholding, see the Deductions, Adjustments, and Additional Income Worksheet on page 5.
For accuracy,
• If you have more than one source of income subject to withholding or are married filing
complete all
jointly and you and your spouse both have income subject to withholding and your
worksheets
combined income from all sources exceeds $13,000 ($25,000 if married filing jointly), see the
that apply.
Multiple Pensions/More-Than-One-Income Worksheet on page 5 to avoid having too little
tax withheld, or use the estimator for more accuracy.
• If neither of the above situations applies, stop here and enter the number from line G on line
2 of Form W-4P above.
5
Form W-4P (2020)
Page
Deductions, Adjustments, and Additional Income Worksheet
Note: Use this worksheet only if you plan to itemize deductions, claim certain adjustments to income, or have a large amount of
other income not subject to withholding.
1 Enter an estimate of your 2020 itemized deductions. These include qualifying home mortgage interest,
charitable contributions, state and local taxes (up to $10,000), and medical expenses in excess of 7.5%
1 $
of your income. See Pub. 505 for details .
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{
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$24,800 if you’re married filing jointly or qualifying widow(er)
2 Enter:
$18,650 if you’re head of household
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2 $
$12,400 if you’re single or married filing separately
3 Subtract line 2 from line 1. If zero or less, enter “-0-” .
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3 $
4 Enter an estimate of your 2020 adjustments to income, qualified business income deduction, and any
4 $
additional standard deduction for age or blindness. See Pub. 505 for information about these items
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5 Add lines 3 and 4 and enter the total
5 $
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6 Enter an estimate of your 2020 other income not subject to withholding (such as dividends, interest, or
capital gains) .
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6 $
7 Subtract line 6 from line 5. If zero, enter “-0-”. If less than zero, enter the amount in parentheses
7 $
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8 Divide the amount on line 7 by $4,300 and enter the result here. If a negative amount, enter in
parentheses. Drop any fraction
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8
9 Enter the number from the Personal Allowances Worksheet, line G, on page 4 .
9
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10 Add lines 8 and 9 and enter the total here. If zero or less, enter “-0-”. If you plan to use the Multiple
Pensions/More-Than-One-Income Worksheet, also enter this total on line 1 below. Otherwise, stop
here and enter this total on Form W-4P, line 2, on page 1
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10
Multiple Pensions/More-Than-One-Income Worksheet
Note: Use this worksheet only if the instructions under line G from the Personal Allowances Worksheet direct you here. This
applies if you (and your spouse if married filing jointly) have more than one source of income subject to withholding (such as more
than one pension, or a pension and a job, or you have a pension and your spouse works).
1 Enter the number from the Personal Allowances Worksheet, line G, on page 4 (or from line 10 above if
you used the Deductions, Adjustments, and Additional Income Worksheet)
1
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2 Find the number in Table 1 on page 6 that applies to the LOWEST paying pension or job and enter it
here. However, if you’re married filing jointly and the amount from the highest paying pension or job is
$75,000 or less and the combined amounts for you and your spouse are $107,000 or less, do not enter
more than “7” .
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2
3 If line 1 is more than or equal to line 2, subtract line 2 from line 1. Enter the result here (if zero, enter
“-0-”) and on Form W-4P, line 2, on page 1. Do not use the rest of this worksheet
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3
Note: If line 1 is less than line 2, enter “-0-” on Form W-4P, line 2, on page 1. Complete lines 4 through 9
below to figure the additional withholding amount necessary to avoid a year-end tax bill.
4 Enter the number from line 2 of this worksheet .
4
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5 Enter the number from line 1 of this worksheet .
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5
6 Subtract line 5 from line 4 .
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6
7 Find the amount in Table 2 on page 6 that applies to the HIGHEST paying pension or job and enter it here
7 $
8 Multiply line 7 by line 6 and enter the result here. This is the additional annual withholding needed .
8 $
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9 Divide line 8 by the number of payments remaining in 2020. For example, divide by 8 if you’re paid
every month and you complete this form in April 2020. Enter the result here and on Form W-4P, line 3,
on page 1. This is the additional amount to be withheld from each payment
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9 $
Page of 6