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Tax Withholding/1099s


 

When you fill out your Application for Retirement you have several options for the withholding of federal and Minnesota income taxes from your PERA pension.

If you choose to have no income tax withheld by PERA you may become responsible for making quarterly federal and state estimated tax payments on your pension.  PERA will provide you with information on the amount of your pension and that portion, if any, which is exempt from tax.

If you have PERA calculate your withholdings, we will do so based on your marital status and the number of exemptions you wish to claim. If we determine no tax is due, no amount will be withheld.

With this option you may choose a dollar amount to be withheld in addition to the withholding generated by the current tax tables.

If you do not specify a withholding preference and your pension is large enough to require withholding, PERA is required by law to withhold federal income tax. In this instance, we will calculate the withholding assuming you are married and claim three exemptions.

PERA cannot withhold tax for a state other than Minnesota.

 

 

 

Resources:

Understanding Your 1099

Note: You can now change your federal and Minnesota tax withholding or download your 1099 any time by becoming a registered member of MY PERA.  It’s fast and convenient. You can also change your tax withholding by downloading a  Tax Withholding Preference/Change Certificate and filing it with the PERA office. Your Pension and Taxes is a publication designed to help you calculate your state and federal tax withholding.