Mi W 4P Form – Fill Out and Use This PDF

Name

Social Security Number

City

State

ZIP Code

Marital Status

Single

Married

Married (withhold the same as “Single”)

Complete the following applicable lines:

5.Enter number of personal exemptions allowed on your Michigan Income Tax Return (MI-1040). Exemptions should only be claimed once on all MI W-4s (wages) or MI W-4P forms submitted.

6.Additional percentage amount, if any, you want withheld from your pension or annuity payment. This amount must be a percentage.

5.

6.

%

AUTHORIZATION

Signature

Printed or Typed Name and Title

Date

General Instructions

Significant income tax changes take effect for the 2012 tax year. These changes may result in a balance due if the incorrect amount is withheld from pension or annuity payment(s).

There is no change in 2012 in the tax treatment of pension and retirement benefits for taxpayers born before 1946. Recipients born during the period 1946 through 1952 are eligible to deduct pension and retirement benefits up to $20,000 for single taxpayers or married filing separate, or $40,000 if married filing a joint return.

Recipients born after 1952 may not deduct pension and retirement benefits on the Michigan Income Tax Return (MI- 1040). For joint filers, the age of the oldest spouse determines the age category.

Multiple pensions: If you (and your spouse) receive multiple pension payments, your withholding on those payments may not cover your entire tax liability. Married couples where each spouse receives payments on their own pension may choose to have withholding calculated as if they were single on the MI W-4P and select one personal exemption in order to have sufficient withholding to cover their tax liability. Taxpayers with multiple pensions may need to consult the MI-1040ES or a tax advisor to ensure the proper amount is withheld or paid in estimated income tax payments.

Estimated Payments: There are penalties for not paying enough state income tax during the year, either through withholding or estimated tax payments. Taxpayers who have chosen not to have tax withheld from their pension or annuity payments may be required to make estimated tax payments. Refer to Form MI-1040ES for estimated tax requirements.

When should I complete this form? Complete Form MI W-4P and give it to the administrator of your pension or annuity payments as soon as possible.

Your tax situation may change from year to year; you may want to evaluate your withholding each year. You can change the amount to be withheld by submitting an updated Form MI W-4P to your pension or annuity administrator at any time.

Is every pension administrator required to withhold Michigan tax? Only companies over whom Michigan has taxing jurisdiction are required to withhold Michigan tax from your pension and/or annuity payment(s). If your pension administrator does not fall under Michigan jurisdiction, you may request to have Michigan tax withheld, but the company is not required to do so. If no taxes are withheld from your payments, it is likely you will be required to make estimated payments in place of the withholding. Contact your pension and/or annuity administrator to verify if tax will be withheld from your payments.

Line-by-Line Instructions

Line 1: You may opt out of withholding tax from your pension and annuity benefits if you believe you will not have a balance due on your MI-1040. If you (and your spouse) opt to have no Michigan tax withheld from your pension or retirement benefits by checking the box on line 1, it may result in a balance due on your MI-1040 as well as penalty and/or interest. If you check the box on line 1, do not complete lines 5 and 6.

STOP HERE AND SIGN THE FORM.

Line 2: If you (or your spouse) were born prior to 1946, all benefits from public sources are exempt and benefits from private sources may be subtracted up to for $47,309 for a single filer or married filer filing separately or $94,618 if married filing a joint return for the 2012 tax year. In addition, benefits that will be rolled into another qualified plan or IRA will not be taxable if the amount rolled over is not included in federal adjusted gross income (AGI). Any private pension payment in excess of the limits above is taxable.

Line 3: If you (or your spouse) were born during the period 1946 through 1952, the first $20,000 for single filers or $40,000 for joint filers of all private and public pension and annuity benefits may be subtracted from Michigan taxable income. Benefits in excess of these limits are taxable to Michigan.

Line 4: If you (and your spouse) were born after 1952, all private and public pension and annuity benefits are fully taxable and may not be subtracted from Michigan taxable income.

Line 5: Enter personal exemptions based on box checked on lines 1-4. The total number of exemptions you claim on line 6 may not exceed the number of exemptions you are entitled to claim when you file your MI-1040.

Line 6: You may designate additional withholding if you expect to owe more than the amount withheld. This amount must be a percentage.

NOTE: If you enter a number on line 5 and/or a percentage on line 6, do not check box 1. If box 1 is checked and line(s) 5 and/or 6 are completed, this will override line 1.

Failuretohavesuficienttaxwithheldfromyourpension and/or annuity payment(s) may result in a balance due on your MI-1040 as well as penalty and/or interest.