Most NYSLRS pensions are subject to federal income tax. If your last federal tax bill or return was not what you expected, Retirement Online makes it fast and convenient to update your federal tax withholding.
If you don’t have an account or for help signing in to an existing account, check out our Retirement Online tools and tips for step-by-step instructions to register, reset your password, unlock your account and more.
Understanding Your Federal Tax Withholding
NYSLRS is required to withhold federal income tax from your pension benefit at the default withholding status of “single with no adjustments” unless you inform us otherwise. The amount withheld is based on the information you provide to us on a W-4P Form (Withholding Certificate for Pension or Annuity Payments).
Note: The Internal Revenue Service (IRS) revised its W-4P Form, which no longer allows tax filers to adjust their withholding by electing a specific number of allowances. To comply with IRS requirements, NYSLRS updated its tax withholding form accordingly. You do not need to submit a new W-4P Form to NYSLRS unless you want to change the amount withheld for federal income tax.
Effective January 1, 2023, NYSLRS does not withhold federal income tax from pension benefits that are not subject to tax reporting.
Estimate Your Federal Tax Withholding
The IRS has a new Tax Withholding Estimator which may help you estimate the federal income tax you want withheld from your pension. When using the tool, be sure to have your most recent tax return, pension pay stubs (available in Retirement Online) and other income information—your results will be based on the information you enter.
Use Retirement Online to Update Your Withholding
Retirement Online is the fastest and most convenient way to complete the W-4P Form and update your federal tax withholding for your NYSLRS pension.
- Sign in to Retirement Online.
- Look under My Account Summary.
- Click Update My W-4P Tax Information button.
- Follow steps to update your withholding.
If you update your federal tax withholding online by the middle of the month, your changes will generally be applied to that month’s pension payment.
For more information, including instructions for updating your withholding, visit our Taxes and Your Pension page.
If You Need Help
The NYSLRS form is based on the IRS form. If you need assistance completing the form:
- Read the IRS Form W-4P for detailed instructions starting on page 2.
- Visit the IRS About Form W-4P page for more information.
- Visit the IRS Let Us Help You page for the IRS phone numbers and a list of online tools and resources.
If you’re not sure whether you need to adjust your federal tax withholding or if you have other tax questions, you may want to consult a tax preparer.
TurboTax is asking what the required RMD is. How or where do I find this information?
NYSLRS doesn’t provide tax preparation advice. If you have questions about filing your taxes, you may want to visit the Internal Revenue Service (IRS) Required Minimum Distributions page for more information or consult a tax preparer.
Hello I just received my tax form from my disability retirement pension and no federal taxes were withheld but in the past ten years there was federal tax withheld i don’t understand why this has changed i did not call to have it changed nor have i went down to have it changed
We’d like to help resolve your issue. Your message is important to us, and we have sent you a private message in response.
I want to increase my federal tax withholding
Retirement Online is the fastest and most convenient way to update your withholding information.
If you update your federal tax withholding online by the middle of the month, your changes will generally be applied that month.
For more information, visit our Taxes and Your Pension page.
HOW MUCH FEDERAL INCOME TAX WILL I PAY ON A NYS PENSION OF 27000 A YEAR
MY MONTHLY BENEFIT IS GOING TO BE 2343 A MONTH WHAT WILL IT BE AFTER TAXES
The amount withheld from your pension is based on the information you provide to us on a W-4P Form (Withholding Certificate for Pension or Annuity Payments). The IRS has a Tax Withholding Estimator which may help you estimate the federal income tax withheld from your pension. When using the tool, be sure to have your most recent tax return and other income information—your results will be based on the information you enter.
For questions specific to your situation, you may wish to consult a tax advisor.
Are WTC Presumptive Accidental Disability pensions federally taxable? My ordinary service retirement was reclassified as a WTC Presumptive Accidental Disability retirement this year. I am wondering if I need to pay federal tax on my NYSLRS pension.
For questions about the taxability of your pension, please message our customer service representatives using our secure contact form. Filling out the secure form allows them to safely contact you about your personal account information.
How do I change my withholding choice. What form do I need?
Retirement Online is the fastest and most convenient way to update your withholding information.
• Sign in to Retirement Online.
• Click Update My W-4P Tax Information button.
• Follow steps to update withholding.
You may want to use the Internal Revenue Service (IRS) Tax Withholding Estimator to help you estimate the federal income tax you want withheld from your pension.
If you update your federal withholding online by the middle of the month, your changes will generally be applied to that end-of-month pension payment.
You can also download, print and complete a paper W-4P Form to update your withholding information. Please note: With a paper form, the information will take longer to reach us. If you do use a form, please be sure to use the current version and make sure you sign and date it.
Am I correct in believing NYS will not withhold federal taxes from my pension because I relocated to VA?
No, moving to Virginia does not affect federal income tax withholding for your pension benefit.
However, if you decide you want to update your federal tax withholding, you can use Retirement Online.
• Sign in to Retirement Online.
• Click Update My W-4P Tax Information button.
• Follow steps to update withholding.
If you update your federal withholding online by the middle of the month, your changes will generally be applied to that end-of-month pension payment.
Please note: While NYSLRS pensions are not subject to New York State or local income tax, your pension may be subject to state or local income taxes in Virginia.
For general information about which states tax pensions, visit the Retired Public Employees Association’s NYS Pension Taxation Requirements By State page.
For questions about your specific situation, consult a tax advisor or contact your state’s tax or revenue agency.
I collect SS in NY State with no taxes withheld and a NY State pen toon with no taxes withheld. Do I have to file each year?
Most NYSLRS pensions are subject to federal income tax.
Retirement Online is the fastest and most convenient way to update your federal tax withholding for your NYSLRS pension.
For more information, visit our Taxes and Your Pension page.
If you’re not sure whether you need to adjust your federal tax withholding or if you have other tax questions, you may want to consult a tax preparer.