May 19, 2009
IRS Releases Withholding Adjustment Procedures for Pension Plans
Filed under: News
Vision Payroll

In IR-2009-050, the Internal Revenue Service (IRS) has announced the release of Notice 1036-P, Additional Withholding for Pensions for 2009, in order to help some pensioners avoid a smaller refund or a balance due when filing their 2009 Form 1040.

Although using the new tables is not required, recipients from plans that adopt the new tables will not need to take any further action to have their withholding adjusted. The IRS is encouraging pension payors who choose to use the new withholding tables to notify pension recipients who requested additional withholding on Form W4-P, Withholding Certificate for Pension or Annuity Payments, after the February tables were released.

The IRS is recommending certain types of taxpayers should consider filing revised forms, especially if they use the IRS withholding calculator and determine that their withholding may be insufficient. Those types of taxpayers include the following:

  • Married couples with two incomes
  • Individuals with multiple jobs
  • Dependents
  • Some social security recipients who work
  • Workers who do not have valid social security numbers

Workers who wish to adjust their withholding should file revised Form W-4, Employee’s Withholding Allowance Certificate or its Spanish equivalent, Formulario W-4(SP), Certificado de Exención de la Retención del Empleado to adjust their withholding.

Contact Vision Payroll if you have any questions on Notice 1036-P.


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