Have a Tax Question? Ask a Tax Expert
Hello JA Customer,
In order to determine if you will actually be liable for any taxes, or the amount you might owe, we would need to know how much your pension income will be each year. Can you please tell us how much you will receive each year from this pension fund?
Also, please confirm the state you live in.
Hello again JA Customer,
Thank you for the additional information.
Since your pension will only be $309 per month, along with your SS income this gives you total income of $1,381 each month. In the state of FL, as long as your monthly income is below $2,022, you still qualify for Medicaid benefits. So you should not lose your Medicaid as a result of receiving this pension.
In addition, since the pension amount is only $309 per month, you will not be liable for any taxes on these benefits. You should simply check the box on line 1 of the
Form W-4P which indicates that you do not want any taxes withheld from your pension benefit checks.
Thank you JA Customer
Yes, it is related to federal and state income taxes.
The Form W-4P is a standard form they send to everyone who is to receive pension benefits. If your pension benefits were higher than $10,750 for the year, then you would actually owe some federal tax on your benefits. But since your total pension for the year is well below that amount you will not be liable for any federal taxes. And living in the state of FL, you obviously have no state income tax issues.
So you simply need to check the box on line 1 to let the company know that you do not want any taxes withheld from these benefit checks.
Thank you once again
Thank you KK for using JA and I am glad this helped you.