Connecticut Withholding Certificate for Pension or Annuity Payments

Withholding Certificate for Pension or Annuity Payments
Form CT-W4P
Department of Revenue Services
State of Connecticut
(Rev. 12/23)

2024

Form CT-W4P

Withholding Certificate for Pension or Annuity Payments

Purpose: Form CT‑W4P is for Connecticut resident recipients of pensions, annuities, and certain other deferred compensation, to tell
payers the correct amount of Connecticut income tax to withhold. Your options depend on whether the payment is periodic or nonperiodic.
Read the instructions on Page 2 before completing this form.
Instructions for Periodic Payments, such as a monthly pension payment:
Step 1: (Required) Select the filing status and description of income from the chart below that best matches your situation. Enter the
corresponding Withholding Code on Line 1.
Step 2: (Optional) To see the amount of tax that will be withheld monthly, see the Monthly Connecticut Withholding Calculator in
myconneCT at portal.ct.gov/DRS-myconneCT.
Step 3: (Optional) To increase or decrease the amount that will be withheld, enter an additional amount on Line 2, or a reduction
amount on Line 3.
Instructions for Nonperiodic Payments, such as an on demand distribution: Do not use the chart below. Either enter Withholding Code “E”
on Line 1 which will result in $0 withholding; or enter Withholding Code “E” on Line 1 and a dollar amount on Line 2 for a specific amount to be
withheld. If neither of these options are indicated, your payer will withhold at 6.99%.
Married Filing Jointly

Withholding
Code

Our expected combined annual gross income is less	
than or equal to $24,000 or no withholding is necessary
(i.e., withholding from other income source).

E

My spouse has income subject to withholding and our
expected combined annual gross income is greater than	
$24,000 and less than or equal to $100,500.

A

My spouse does not have income subject to withholding
and our expected combined annual gross income	
is greater than $24,000.

C

My spouse has income subject to withholding and
our expected combined annual gross income	
is greater than $100,500.

D

I have significant other income and wish to avoid having	
too little tax withheld.

D

Qualifying Surviving Spouse

I have significant other income and wish to avoid having	
too little tax withheld.

Withholding
Code

My expected annual gross income is less than or equal to	
$12,000 or no withholding is necessary (i.e., withholding
from other income source).
My expected annual gross income is greater	
than $12,000.

E
A

I have significant other income and wish to avoid having	
too little tax withheld.

D
Withholding
Code

Single
My expected annual gross income is less than or equal to	
$15,000 or no withholding is necessary (i.e., withholding
from other income source).
My expected annual gross income is greater	
than $15,000.

E
F

I have significant other income and wish to avoid having	
too little tax withheld.
Head of Household

Withholding
Code

My expected annual gross income is less than or equal to	
$24,000 or no withholding is necessary (i.e., withholding
from other income source).
My expected annual gross income is greater	
than $24,000.



Married Filing Separately

C

My expected annual gross income is less than or equal to	
$19,000 or no withholding is necessary (i.e., withholding
from other income source).
My expected annual gross income is greater	
than $19,000.

D

I have significant other income and wish to avoid having	
too little tax withheld.

E

D
Withholding
Code

Withholding Certificate for
Pension or Annuity Payments

B
D



Submit completed form to the payer of your pension or annuity, not DRS.

Department of Revenue Services
State of Connecticut

E

2024 Form CT-W4P

Complete the following applicable lines.

1.	 Withholding Code: See instructions above. ................................................................................................ 1.
2.	 Additional withholding amount per payment, if any. .................................................................................... 2. $
3.	 Reduced withholding amount per payment, if any. ...................................................................................... 3. $
First name	

Ml	

Last name	

Home address (number and street, apartment number, suite number, PO Box)	
City/town	

State	

Social Security Number
Claim or identification number (if any) of your
pension or annuity contract

ZIP code

Declaration: I declare under penalty of law that I have examined this certificate and, to the best of my knowledge and belief, it is true, complete, and correct.
I understand the penalty for reporting false information is a fine of not more than $5,000, imprisonment for not more than five years, or both.
Payee’s signature	

Date

Visit us at portal.ct.gov/DRS for more information.

Form CT-W4P Instructions
Payee General Instructions

Form CT‑W4P, Withholding Certificate for Pension or Annuity
Payments, is for Connecticut resident recipients of pension,
annuities and certain other deferred compensation subject to
Connecticut income tax. Form CT‑W4P provides your payer
with the necessary information to withhold the correct amount of
Connecticut income tax from your pension or annuity payment
to ensure that you will not be underwithheld or overwithheld.
Payers of taxable pension or annuity distributions are required
to deduct and withhold income tax from such distributions.
Distributions subject to withholding include taxable distributions
from the following: an employer pension, and annuity, a profit
sharing plan, a stock bonus, a deferred compensation plan, an
individual retirement arrangement (IRA), an endowment and a
life insurance contract. Taxable distributions are distributions
that are subject to federal income tax. Non-taxable distributions
(for example, most distributions from Roth 401(k) or Roth IRA
accounts) are not subject to withholding. Form CT-W4P is not
required for non-taxable distributions.
The method of withholding depends on whether the payment
is periodic, nonperiodic, or a distribution of the entire account
balance. Connecticut uses the federal definition for periodic and
nonperiodic payments.

Periodic Payments: Withholding from periodic pension

and annuity payments, such as monthly pension payments, is
calculated using the same method that an employer uses to
determine the amount to withhold from wages.
Determining your withholding code: When completing Form
CT-W4P, you must first determine your withholding code. Your
withholding code is based on the filing status you expect to report
on your Connecticut income tax return and the statement that
best describes your annual gross income.
Your annual gross income is your total income from all sources.
In calculating your total income from all sources, you may
deduct 100% of the income received from certain pensions and
annuities, such as from a defined benefit plan, 401(k), 403(b)
plans as follows:
•	

•	

•	

For single, married filing separately, or head of household
filers with federal adjusted gross income (AGI) for the taxable
year of less than $75,000. For federal adjusted gross income
at least $75,000 but less than $100,000, the deduction is
gradually phased out until it is fully phased out at $100,000
for these filers.
For married filing jointly or qualifying surviving spouse filers
with federal adjusted gross income (AGI) for the taxable year
of less than $100,000. For federal adjusted gross income
at least $100,000 but less than $150,000, the deduction is
gradually phased out until it is fully phased out at $150,000
for these filers.
In the case of the IRA deduction (other than Roth IRAs),
the deduction calculated above applies to 50% of the IRA
income.

For more information, see Informational Publication 2024(7), Is
My Connecticut Withholding Correct?
•	

If you receive payments from the Teachers’ Retirement
System, exclude 50% of the amounts received. If your federal
AGI is below the applicable threshold you may claim either
the teachers’ pension subtraction modification or the pension
and annuity subtraction modification, whichever is greater.

Form CT-W4P (Rev. 12/23)

Failure to give your payer a properly completed Form
CT‑W4P will result in 6.99% withholding from your payment(s).

Nonperiodic Payments: Your payer must withhold

6.99% from the taxable amount of nonperiodic payments
(see Distribution of the entire account balance, on this page)
unless you complete Form CT‑W4P using one of the following
options. Distributions from an IRA that are payable on demand
are treated as nonperiodic payments. Do not use the chart
on Page 1. Either enter:
•	

Withholding Code “E” on Line  1 which will result in $0
withholding; or

•	

Withholding Code “E” on Line  1 and a dollar amount on
Line 2 for a specific amount to be withheld.

You may not choose any other withholding code.
Form CT‑W4P will remain in effect until you submit a new one.
You should complete a new Form CT‑W4P if your tax situation
changes, such as your filing status changes. You should furnish
your payer with a new Form CT‑W4P.

Distribution of the entire account balance: The

withholding rate for lump sum distribution of the entire account
balance is 6.99% without allowance for exemption, unless any
portion of the lump sum distribution was previously subject to
tax (distributions from Roth 401(k) or Roth IRA accounts), or
the lump sum distribution is a trustee-to-trustee transfer, or is a
direct roll over in the form of a check made payable to another
qualified account. You cannot claim exemption from withholding.
Don’t give Form CT‑W4P to your payer.

Check Your Withholding

You may be underwithheld if any of the following apply:
•	

You have more than one source of income;

•	

If your filing status is married filing jointly and you or your
spouse, or both, have more than one source of income; or

•	

You have substantial other income such as interest,
dividends or capital gains.

If you are underwithheld, you should consider adjusting
your withholding or making estimated payments using Form
CT‑1040ES, Estimated Connecticut Income Tax Payment
Coupon for Individuals.
If you owe $1,000 or more in Connecticut income tax over and
above what has been withheld from your income for the prior
taxable year, you may be subject to interest on the underpayment
at the rate of 1% per month or fraction of a month.
To help determine if your withholding is correct, see Is My
Connecticut Withholding Correct?

Payer Instructions

For any payee who does not complete Form CT‑W4P, you are
required to withhold at the highest marginal rate of 6.99% without
allowance for exemption from any taxable distribution. You are
required to keep Form CT‑W4P in your files for each payee.
For additional instructions, see Connecticut Tax Guide for Payers
of Nonpayroll Amounts.

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