2019 – 09/17 Are you a retiree who may owe taxes this year on your Social Security or pension income? The IRS has created a tool that calculates the taxable portion of benefits. It also incorporates that information into an overall estimate of the projected tax liability and withholding for the year. If a withholding change is needed, you can choose between a tax due that will bring your tax bill close to zero, or a refund amount. The estimator tool then links to Form W-4P (“Withholding Certificate for Pension or Annuity Payments”) and provides a specific withholding recommendation, based on the option chosen. Visit this IRS link, https://bit.ly/2lZ0riD, and see “Special help for retirees.”
