Form W-4P

Payees use Form W-4P to have payers withhold the correct amount of federal income tax from periodic pension, annuity (including commercial annuities), profit-sharing and stock bonus plan, or IRA payments.

Using a 2022 or later Form W-4P.

Payees provide payers with amounts to increase or decrease the amount of taxes withheld and amounts to increase or decrease the amount of pension/annuity payments subject to income tax withholding. Form W-4P contains 5 steps. Every Form W-4P payers receive from a payee in 2022 or later should show a completed Step 1 (name, address, SSN, and filing status) and a dated signature in Step 5. Payees complete Steps 2, 3, and/or 4 only if relevant to their personal situations. Steps 2, 3, and 4 show adjustments that affect withholding calculations.

For payees completing one or more of Steps 2, 3, and/or 4 on a 2022 or later Form W-4P, adjustments are as follows.

Step 2.

If the payee completes Step 2, the payer will use the amount in Step 2(b)(iii) from a 2022 or later Form W-4P in Worksheet 1B to figure income tax withholding.