IRS Form W-4P – If you receive periodic pension, annuity, IRA, or similar retirement payments, the IRS Form W-4P (Withholding Certificate for Periodic Pension or Annuity Payments) helps ensure the correct amount of federal income tax is withheld from each payment. Proper completion prevents under- or over-withholding, which could lead to a big tax bill or a smaller refund when you file your return.
This guide covers the 2026 version of Form W-4P (released December 2025), who needs it, how to fill it out step by step, when to choose no withholding, and tips for accuracy. Always download the latest official form and instructions directly from the IRS.
Download the official 2026 Form W-4P PDF here: https://www.irs.gov/pub/irs-pdf/fw4p.pdf
What Is IRS Form W-4P and Who Needs It?
Form W-4P tells the payer (such as a pension plan administrator, insurance company, or IRA custodian) how much federal income tax to withhold from periodic payments. These are regular installment payments made over more than one year (e.g., monthly, quarterly, or annual pension or annuity checks).
Use Form W-4P for:
- Traditional pensions
- Annuities (including commercial annuities)
- Profit-sharing, stock bonus plans, or IRA distributions paid periodically
Do NOT use it for:
- Nonperiodic (lump-sum or on-demand) payments
- Eligible rollover distributions → Use Form W-4R instead
Key difference from Form W-4: The standard W-4 is for wages from a job, while W-4P is tailored for retirement income. Submit a separate W-4P to each payer if you have multiple sources.
Who should submit one? Anyone receiving these payments who wants to customize their withholding—especially if your situation has changed (marriage, new income sources, dependents, or retirement). Many people submit or update it when payments begin or at the start of each year.
What Happens If You Don’t Submit Form W-4P?
If you don’t provide a valid Form W-4P (or the payer lacks your correct SSN), the payer defaults to withholding as if you are single with no adjustments in Steps 2–4. This often results in higher withholding than necessary. Update your form promptly to match your actual tax situation.
Step-by-Step Guide to Filling Out the 2026 Form W-4P
The form has five steps. Complete Step 1 and Step 5 for everyone. Complete Steps 2–4 only if they apply; otherwise, skip to Step 5.
Step 1: Enter Personal Information
- Provide your full name, address, and Social Security Number (SSN).
- Check your filing status: Single or Married filing separately; Married filing jointly or Qualifying surviving spouse; or Head of household (if eligible).
- This step is required; the form is invalid without your SSN.
Step 2: Multiple Sources of Income (Jobs or Pensions/Annuities)
Complete this if you (or your spouse, if married filing jointly) have:
- Income from a job, or
- More than one pension/annuity
Options:
- Recommended: Use the free IRS Tax Withholding Estimator at irs.gov/W4App for the most accurate results (especially with self-employment income).
- Manual: Enter total taxable pay from jobs (adjusted for other W-4 entries) and/or lower-paying pensions/annuities, then add them up.
Important tip: Adjustments in later steps should generally be entered only on the highest-paying pension or on your W-4 (for jobs). Submit updated forms for your other pensions if you haven’t since 2021.
Step 3: Claim Dependent and Other Credits (If Total Income ≤ $200,000 / $400,000 Joint)
- Multiply qualifying children under age 17 by $2,200.
- Multiply other dependents by $500.
- Add other credits (e.g., education or foreign tax credits).
- Total reduces your withholding.
This reflects child tax credit and credit for other dependents.
Step 4: Other Adjustments
- (a) Other income: Enter non-withheld income (taxable Social Security, interest, dividends) to increase withholding.
- (b) Deductions: Use the built-in Deductions Worksheet (on page 4 of the form) if you expect to itemize or claim above-the-line deductions beyond the standard deduction. This lowers withholding.
- (c) Extra withholding: Enter any additional dollar amount you want withheld from each payment.
- New for 2026: Check the “No withholding” box here to elect zero federal tax withholding (if permitted).
Step 5: Sign and Date
Your signature and date are required. The form is invalid without them.
Deductions Worksheet Note: The 2026 worksheet accounts for updated deductions (e.g., senior boosts, qualified tips/overtime, itemized limits). Keep a copy for your records.
How to Elect No Federal Tax Withholding (“No Withholding”)?
On the 2026 form, simply check the new “No withholding” box in Step 4. You must still complete Steps 1(a), 1(b), and 5.
Important restrictions:
- Generally not allowed if payments are delivered outside the U.S. and its territories (for U.S. citizens/residents).
- You remain responsible for paying taxes owed—under-withholding can trigger penalties and interest.
- You can revoke this election later by submitting a new Form W-4P.
Many retirees choose this if their total income is low enough that they expect no tax liability or will cover it via estimated payments.
Use the IRS Tax Withholding Estimator for Best Results
The IRS strongly recommends the online Tax Withholding Estimator at irs.gov/W4App, especially if:
- You’re completing the form mid-year
- You have multiple income sources
- Your situation changed (marriage, dependents, new deductions)
Have your most recent payment statements ready. Recheck at the beginning of each year.
When to Update or Submit Your W-4P?
- When payments start
- After major life events (marriage, divorce, new dependents, retirement from a job)
- Annually or when tax laws change
- Anytime your withholding doesn’t match your expected tax liability
Submit the form directly to each payer. Some accept it electronically or by mail/fax—check with your plan administrator.
Common Mistakes to Avoid
- Forgetting to update for multiple pensions or spousal income
- Skipping the Estimator in complex situations
- Entering adjustments on the wrong form (e.g., putting pension adjustments on a job W-4)
- Not signing the form
- Assuming default withholding will be accurate
Related IRS Resources
- Publication 505: Tax Withholding and Estimated Tax
- Publication 15-T: Federal Income Tax Withholding Methods (for payers)
- Form W-4R: For nonperiodic or rollover distributions
- IRS.gov withholding tools and estimators
Final Tips
Review your Form W-4P withholding each year to align with your overall tax picture. If your pension or annuity is your main income, accurate withholding can help you avoid surprises and better manage cash flow. For personalized advice, consult a tax professional or use the IRS resources above—this article is for informational purposes only and is not a substitute for official guidance.
Download the latest Form W-4P: irs.gov/pub/irs-pdf/fw4p.pdf
Have questions about your specific situation? The IRS website and Tax Withholding Estimator are excellent starting points. Stay proactive with your retirement tax withholding to enjoy a smoother tax season.