Change Your Monthly Income Tax Withholding

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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, if a completed form is not on file with our office, taxes equivalent to a married individual with three withholding allowances will be deducted from your pension check.

For more information on tax tables, please visit the IRS website. 

You may change your withholding elections at any time by completing a new Income Tax Withholding Form or updating your information on MyLAFPP.

Click here to view a step-by-step guide on updating your tax withholdings on MyLAFPP.

Income Tax Withholding Form

If you want to change your tax withholding elections, you may submit a completed Income Tax Withholding Form to the Retirement Services Section. This form allows you to update your tax withholding elections for the federal government and the state of California only. Follow the instructions on the form to ensure that your information is accurate. Due to stringent deadlines, your form may not be processed until the month following receipt.

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:

1. Do not withhold any taxes, or

2. 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:

1. Do not withhold any taxes, or

2. 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.