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Showing results for tags 'w-4p'.
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I was reviewing Form W-4P to determine if the payer is to withhold differently for annuities that started, for example, in 2017 vs. 2025 when there is no W-4P on file. 2025 Form W-4P states: "If you don’t give Form W-4P to your payer..., then the payer will withhold tax from your payments as if your filing status is single with no adjustments in Steps 2 through 4. For payments that began before 2025, your current withholding election (or your default rate) remains in effect unless you submit a new Form W-4P. Client A, who annuitized in 2017 and never submitted a withholding certificate, had an original "default withholding rate" of "married with 3 allowances". Client B, who annuitized in 2025 and has not submitted a withholding certificate, has a default withholding rate of "single with no adjustments". Am I understanding correctly that in 2025, in the continued absence of a Form W-4P, Client A's default withholding remains "married with 3 allowances"? We just want to know if in the absence of a W-4P, whether or not Client A's withholding must conform to the newer default of "single with no adjustments" or if it remains with the original default of "married with 3 allowances". TIA
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