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NOTICE: As a result of a change in the federal tax withholding tables for 2015, you may see a change in the amount of federal taxes withheld from your pension payment.
What do the Percentage Method Tables for Income Tax Withholding show?
These tables show wage amounts, which are net wages after the deduction for total withholding allowances.
How are federal tax withholding rates calculated?
INPRS is required under federal law to report any distributions made to you in any given calendar year. Any or all amounts may be taxable. Your withholding amount is based on the federal tax election you filed with INPRS. If you did not make any election, per IRS guidelines, you would have defaulted to married with three exemptions. Under IRS rules, federal withholding is based on marital status and the number of allowances you claim when you make your federal income tax election.
How can I change my federal income tax withholding election?
You can log on to your secure online account to change your federal income tax withholding election. Alternatively, you may print off the Form W-4P, which is available to download from the IRS Web site here.
Where can I find additional information on federal income tax withholding?
Additional information on federal income tax withholding is available on the IRS Web site.
My January 2015 pension benefit payment was different from the usual amount. What may have caused this to change?
The recent change in 2015 tax tables may have changed the amount of your January pension benefit payment.
Where can I find more information on 2015 Percentage Method Tables for Income Tax Withholding?
Go online to http://www.irs.gov/pub/irs-pdf/n1036.pdf for more information.