How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29781
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I will be retiring at the end of 2008, my pension will be 3845.00

Customer Question

I will be retiring at the end of 2008, my pension will be 3845.00 monthly . If I want to receive as much as possible what should I have them withold for taxes both Fed and Ca. State ?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

If your monthly pension $3845 not from social security - it will likely be fully taxable.

If you do not want any tax withheld from your pension in 2008 - you need to file the form W4-P - http://www.irs.gov/pub/irs-pdf/fw4p.pdf with the administrator of your pension fund. if you do not want any federal income tax withheld - check the box on the line 1.

Here is a similar form for CA - http://www.edd.ca.gov/pdf_pub_ctr/de4p.pdf

 

Assuming that will be your only income $3845 * 12= $46140 - that will be taxable and you need to file a new withholding certificates in 2009 or pay estimated taxes on your own.