Change your Monthly Income Tax Withholding
The federal government and the State of California (for residents only) require that LAFPP withhold taxes unless the pensioner or other payees file an election to have no taxes withheld.
Per IRS requirements, effective January 1, 2023, if a completed form is not on file with our office, taxes equivalent to a single individual with no adjustments will be deducted from your pension check. Note that the default withholding for California income tax withholding for California residents remains unchanged at married with three withholding allowances.
For more information on tax tables, please visit the IRS website.
You may change your withholding elections at any time by completing the appropriate income tax withholding form or updating your information on MyLAFPP.
Income Tax Withholding Form
If you want to change your tax withholding elections, you may submit the following income tax withholding forms to the Retirement Services Section.
- Federal Tax Withholding: Submit a completed IRS Form W-4P to have federal income tax withheld from your taxable monthly pension check. The Form W-4P includes instructions on how to complete the form. You may also review the LAFPP Form W-4P FAQs for additional information.
- California State Tax Withholding: If you are a California resident and would like California state income tax withheld from your taxable monthly pension check, submit a completed LAFPP California Income Tax Withholding Form
Submissions received after the 15th of the month will become effective the following month.
Things to Consider
Tax Withholding for Foreign Residents
The IRS no longer allows for flat rate withholding. If you make changes to your federal tax withholding, you may only select from one of the following two options:
- Do not withhold any taxes, or
- Withhold using the federal tax tables.
If the appropriate form (W-8 BEN) is not on file with our office, a mandatory 30% Non-Resident Alien (NRA) tax will be withheld from your pension check. Upon receipt of the required form, your tax withholdings will be adjusted to the percentage applicable to your country of residence.
Federal Tax Withholding
The IRS no longer allows for flat rate withholding. If you make changes to your federal tax withholding, you may only select from one of the following two options:
- Do not withhold any taxes, or
- Withhold using the federal tax tables. Please note that you may also elect to add a flat rate in addition to the federal tax tables.
If your federal tax withholding is currently set to a flat dollar amount or percentage, that election will continue to be honored. However, if you decide to update your withholding election, you will only be able to choose from one of the two options above.
State Tax Withholding
If you move to another state, you cannot withhold non-California state taxes.
Residents of California will have their state tax withholdings reported on a Form 1099-R.
Note: If you lived in more than one state within a tax year, you could receive additional forms.