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.
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