Federal & State Tax Information

You can voluntarily elect to withhold both Federal and State Taxes from your monthly annuity check.

Federal Income Tax

Generally, unless you specify a monthly withholding rate or amount, we withhold Federal income tax as if you are married and claiming three allowances.  Use Services Online to start, change, or stop the Federal tax withheld from your annuity payment or specify the dollar amount withheld.

You can Contact Us to change your withholding amount.  If you write, your letter should include your claim number and the monthly amount in dollars you want withheld.  We will send you a Form W-4P-A, "Election of Federal Income Tax Withholding," and instructions for making the change.  The change in your withholdings will be made after we receive your Form W-4P-A.

Use our Federal income tax withholding calculator to determine the amount that should be withheld from your annuity payment.

Please note that you may be penalized by the Internal Revenue Service (IRS) if you do not have at least 90 percent of your yearly tax liability either withheld from your salary or annuity or made via quarterly payments to the IRS.  If you need more information or assistance in determining whether or you are not having the right amount of Federal income tax withheld, see the Internal Revenue Service website at www.irs.gov.

State Income Tax

You must specify the dollar amount of State tax you want withheld from your monthly payments.  The withholding must be in whole dollars.  The minimum amount we can withhold for State income tax is $5.  Use Services Online to start, change, or stop the State tax withheld from your annuity payment.

You can Contact Us to change your withholding amount.  If you write, your letter should include your claim number and the monthly amount in dollars you want withheld.  If you do not know the monthly amount you want withheld, contact your State tax office for information or assistance.

Check our List of State tax offices for information about participating States.  If your State does not participate, please contact the State tax office for information or assistance.