If you already receive a pension, you may need to familiarize yourself with how to write Form W4P. The same is true if you are getting an annuity or deferred compensation. Through this form, the IRS lets its taxpayers know the right amount to be withheld from the federal income tax.
Most people who use this form have not filled it out for over 20 years. But because things have changed recently, you must know how to file this form. Do remember that this form may confuse you with the standard W-4. But take note of this: W-4 is for your job, while W-4P is for your pension.
Form W-4P - Withholding Certificate for Pension or Annuity Payments
Table of Contents
How to Create Form W-4P
It’s easy to complete Form W4P from the IRS. The first thing you need to do is to gain a copy of the form by downloading it from the IRS website. You can also use Fill’s template gallery to access this form.
You will then need to fill up the following information by following these steps:
1. Provide your personal information
This is a standard step for any IRS form. You will need to provide your personal information on the first part of the worksheet. You will need to include the following:
- Full legal name
- Social Security Number
- Mailing address
- Civil status
2. Fill out the income from a job(s) or other pension(s) section
You will need to accomplish this section if you have income from a job or more than one pension/annuity. This is also necessary if you are filing with your spouse jointly.
There are three sections to note here:
- Line (b)(i) – This section asks to total the income you get if you or your wife plan to will take another job.
- Line (b)(ii) – Meanwhile, this line is for other pensions, which is not for the person filling out the form. One example here is if you are married to a government employee who is getting a pension.
- Line (b)(iii) – Simply add the total of lines (b)(i) and (b)(ii) here.
Compute the Claim Dependent and Other credits
If you filled out Line (b)(i), you will need to skip this step. Otherwise, you will need to compute your total income with the dependents that you have. You will also need to include any other credits that you have.
3. Include other adjustments
This is an optional part when writing Form W-4P. You do not need to answer this if you don’t have anything to declare. But basically, you will need to include the following information here:
- Line (a) – Other income (not from jobs or pension/annuity payments)
- Line (b) – Deductions
- Line (c) – Extra withholding
4. Affix your signature
The last part of the form requires you to affix your signature. Once you’ve done that, you’ll be finished in the Form W-4P creation process. You can then submit this form to the IRS in no time.
Form W-4P - Withholding Certificate for Pension or Annuity Payments
Free Form W4P
Filling out the form doesn’t need to be difficult. You can easily do so even if you don’t have experience in it. If you need a template for drafting Form W4P, you can check out Fill’s template gallery.
It’s important to work with a tax consultant so you can be sure that what you’re doing is correct. You also must remember that once the W-4P form has been filed, it will stay in effect. You will need to submit a new one when a change in your life situation takes place.
You can visit the IRS website for more information on Form W-4P.
Meet Fill: Your Best Solution for IRS Form W-4P
It can be tiring filling out an IRS form manually. Thankfully, there are now tools that you can use to fill out your forms electronically.
One thing to note about these tools is that not everyone offers the same features. Fill is one option that can help fill out your W-4P form. Through this software, you can easily edit the form and share the document without printing it out.
The best thing is that you don’t need to learn how to draft Form W-4P from scratch. Thanks to Fill’s template gallery, you can easily accomplish this in no time. Create an account for free today so you can start editing your forms.
