I recently retired. I receive a small monthly pension. My total pension is a little more than $6000 a year. I have no other pension. I have a new job with reportable income. I am single and claim only myself. I just received my first pension check and the IRS did not withhold any tax. I authorized the IRS to withhold on the W-4P form. I have gone over the W-4P form again and I am confused. Is this small pension tax free or should I resubmit and request that a certain amount should be withdrawn each month? Thanks Keith
My husband and I divorced in January 2002. As part of our divorce decree, I was awarded 50% of his monthly pension when he reached the age of 45. Also as part of the divorce decree, I was the sole beneficiary of his pension funds should he die. I was married to him from the first day he was part of the pension plan to the time he took early retirement in 1999.
In July 2006 he passed away. All funds came to me in a lump sum but I was taxed higher because we weren't married at the time of his death. The government took over $50,000 of these funds. Is this accurate? We were married for 20 years and only divorced for 5 1/2 years.