The IRS has released the 2018 Form W-4P. This form is used to report by payees to tell payers the correct amount of federal income tax to withhold from their payments.
There are a number of changes from the previous revision:
- New General Instructions and Specific Instructions sections
- Specific instructions are for Personal Allowances Worksheet, Deductions, Adjustments, and Additional Income Worksheet, and Multiple Pensions/More-Than-One-Income Worksheet
- Personal Allowances Worksheet has been updated
- Certain withholding and deduction amounts have been updated
- Tax will be withheld if the taxable amount of the payee’s pension or annuity is at least $1,990 a month if they have not already filed Form W-4P to their payer
- Previously this amount was $1,720/month.
To view the 2018 W-4P, please click here.
About the Author
Adam Rivera is a member of the Regulatory Analysis Team's Direct Tax division at Sovos. His main areas of focus are Federal and State Tax Withholding and Affordable Care Act (ACA) Reporting. Prior to Sovos, Adam worked as a legislative aide in the Florida House of Representatives. He also has experience in securities law, focusing on securities litigation and researching emerging crowdfunding methods of raising capital. Adam is a member of both the Massachusetts and Florida Bars. He earned his B.A. from the University of Florida and his J.D. from the University of Miami.More Content by Adam Rivera