What is Form W4-P?

 

Purpose. Form W-4P is for U.S. citizens, resident aliens, or their estates who are recipients of pensions, annuities (including commercial annuities), and certain other deferred compensation. Use Form W-4P to tell payers the correct amount of federal income tax to withhold from your payment(s). You also may use Form W-4P to choose

 

·         not to have any federal income tax withheld from the payment (except for eligible rollover distributions or payments to U.S. citizens delivered outside the United States or its possessions) or

·         to have an additional amount of tax withheld.

 

Your options depend on whether the payment is periodic, nonperiodic, or an eligible rollover distribution, as explained on pages 3 and 4. Your previously filed Form W-4P will remain in effect if you do not file a Form

W-4P for 2014.

 

What do I need to do?

Complete lines A through G of the Personal Allowances Worksheet. Use the additional worksheets on page 2 to further adjust your withholding allowances for itemized deductions, adjustments to income, any additional standard deduction, certain credits, or multiple pensions/more-than-one-income situations. If you do not want any federal income tax withheld (see Purpose, earlier), you can skip the worksheets and go directly to the Form W-4P below.

 

Sign this form.

Form W-4P is not valid unless you sign it. 

 

Future developments. The IRS has created a page on IRS.gov for information about Form W-4P and its instructions, at www.irs.gov/w4p. Information about any future developments affecting Form W-4P (such as

legislation enacted after we release it) will be posted on that page.

 

About Excellence Tax Services:

We are CPA in Philadelphia.  We specialize in small business accounting and taxation.  We have 24 years of combined accounting, auditing, and tax experience and we are confident we can help you grow and be successful with your business.

For additional information, please do not hesitate in contacting your CPA in Philadelphia at 215-667-8839.