Michigan Withholding Certificate for Michigan Pension or Annuity Payments

Withholding Certificate for Michigan Pension or Annuity Payments
4924, Withholding Certificate for Michigan Pension or Annuity Payments MI W-4P
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MI W-4P

Michigan Department of Treasury
4924 (Rev. 01-24)

Withholding Certificate for Michigan Pension or Annuity Payments
INSTRUCTIONS: Use Form MI W-4P to provide your information to pension and retirement benefits administrators to determine the
amount of Michigan income tax to withhold from your pension, retirement benefit or annuity payments. You may also use this form
to choose not to have any Michigan income tax withheld from your payments. Military pensions and pensions paid by the Railroad
Retirement Board are not subject to tax or withholding.
Entities subject to Michigan taxes that disburse pension or annuity payments are required to collect withholding if the payment is
expected to be taxable unless you opt out using this form (see instructions for line 1). Entities over which Michigan does not have
jurisdiction are not required to withhold Michigan income tax from your pension or annuity payment(s). If your pension administrator does
not withhold, you may need to make estimated income tax payments to avoid owing penalty and interest. For further information, see
General Instructions on page two, the Michigan Estimated Income Tax for Individuals (MI-1040ES) or consult a tax advisor.
If you have more than one pension administrator, you will need to complete a form for each pension or annuity. If you do not file
form MI W-4P, the administrator may withhold even if you will not owe tax on your pension income. See instructions on page two.

GENERAL INFORMATION
Name

Social Security Number

Mailing Address (Number, Street, P.O. Box)
City

State

ZIP Code

Marital Status
Single

Married, joint return

Married (withhold the same as “Single”)

1. Check this box if your payments are not taxable or you wish to opt out of default withholding methods described in the instructions. If you would
like to calculate your own amount of withholding (greater than zero), also see line 3 or line 4, if your administrator allows.
NOTE: Opting out may result in a balance due on your MI-1040 which may be subject to additional penalty and/or interest.
2.

Enter number of personal exemptions allowed on your Michigan Income Tax Return (MI-1040). If you file
form(s) MI W-4 (wages) or multiple form MI W-4Ps, your personal exemptions claimed on all the forms
combined should not exceed your total allowable personal exemptions claimed on your MI-1040.

2.

Voluntary Withholding from Pension or Annuity Payment:
3.

Voluntary percentage amount you want withheld from each pension or annuity payment (if permitted by
your pension administrator). This amount must be a percentage.

3.

4.

Voluntary dollar amount you want withheld from each pension or annuity payment (if permitted by your
pension administrator).

4.

AUTHORIZATION
Signature
Printed or Typed Name and Title

Date

Sign and return this completed form to the administrator of your pension or annuity. Keep a copy for your records.
Visit www.michigan.gov/taxes for additional information.

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4924, Page 2

Instructions for Completing MI W-4P,
Withholding Certificate for Michigan Pension or Annuity Payments

General Instructions

Throughout these instructions, the terms pension, retirement, and
annuity benefits and payments may be used interchangeably.
Your pension, retirement, or annuity payments may be taxable
or partially taxable, and your administrator may be required to
withhold Michigan income tax. If withholding is too low, an
underpayment may result on your annual return (Form MI-1040).
Underpayments may be subject to penalty and interest.
Some benefits qualify as “retirement and pension benefits” under
the law and some or all of those benefits may not be taxable on
your annual return, depending on your year of birth and other
factors. Your pension administrator is only required to withhold
on the benefits expected to be taxable. However, you may request
more or less withholding by completing this form and submitting
it to your pension administrator.
Significant income tax changes took effect in 2024 that may
reduce your taxable retirement, pension, or annuity payments.
Several default withholding rules are described below and should
generally allow the administrator to withhold the correct amount;
however, they may not apply to every taxpayer or every situation.
Please consult a tax advisor or use Treasury’s pension estimator
on our website at www.michigan.gov/taxes/iit, to calculate your
taxable benefits. In addition, see Revenue Administrative Bulletin
(RAB) 2023-22 for more information.
The following default rules will be used by your administrator
to determine the taxable portion of your benefits. If you do not
submit this form to your pension administrator, the amount of
tax withheld from your retirement or pension benefits will be
automatically calculated based on the following general rules:
•
Recipients of qualifying public safety retirement benefits
are not taxed on any qualifying public retirement benefits,
and may subtract qualifying private pension and retirement
benefits up to $64,040 if single or married filing separately,
or $128,080 if married filing a joint return. Private pension
limits are reduced by the subtraction claimed for public
pension sources. See the MI-1040 Instruction Booklet and
RAB 2023-22 for more information.
•
Recipients born before 1946 may subtract all qualifying
pension and retirement benefits received from public
sources, and may subtract qualifying private pension and
retirement benefits up to $64,040 if single or married filing
separately, or $128,080 if married filing a joint return.
Private pension limits are reduced by the subtraction claimed
for public pension sources.
•
For 2024, recipients born in 1946 through 1962 may
generally subtract qualifying retirement and pension
benefits up to $32,020 if single or married filing separately,
or $64,040 if married filing jointly. If greater, a taxpayer
may be eligible for the standard deduction of $20,000 for
single or married filing separately or $40,000 for married
filing jointly, against all income. Regardless which option
is most beneficial on the retiree’s annual return, a pension
administrator may assume that up to $32,020 or $64,040 of
payments are not taxable.
•
For 2024, payments to recipients born after 1962 will
generally be fully subject to tax and withholding after
deducting personal exemptions.
If you prefer to opt out of the default rules and calculate your own
taxable benefits and withholding, check the box on line 1 and use
line 3 or line 4, if allowed by your administrator, to determine the
percent or amount of tax you want the administrator to withhold.
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 retirement benefits may choose to have withholding
calculated as if each was single on the MI W-4P and select one
personal exemption in order to have sufficient withholding to
cover the tax liability. Taxpayers with multiple pensions may need
to make quarterly estimated payments (MI-1040ES) or consult
a tax advisor to ensure the proper amount is withheld or paid
through estimated 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 choose not to have tax
withheld from their retirement benefits 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 retirement benefits 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 administrator at any time.
Is every pension administrator required to withhold
Michigan tax? Only companies over which Michigan has taxing
jurisdiction are required to withhold Michigan tax from your
retirement benefits. 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 whether tax
will be withheld from your payments.

Line-by-Line Instructions

Marital Status: Only check the “Married, joint return” box
if your spouse does not also receive qualifying retirement or
pension benefits or if your spouse opts not to consider any
subtraction while computing their retirement withholding.
Checking this box indicates to your administrator that
they may allow the larger, joint limitations in computing
your withholding and unless used properly, could result in
underpayment on your annual return.
Line 1: You may opt out of withholding tax from your
retirement 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 retirement benefits by checking
the box on line 1, it may result in a balance due on your MI-1040
and penalty and/or interest may apply.
If you prefer to opt out of the default rules (see General
Instructions) and calculate your own taxable benefits and
withholding, check the box on line 1 and use line 3 or line 4,
if allowed by your administrator, to determine the percent or
amount of tax you want the administrator to withhold.
Line 2: Enter personal exemptions you are claiming for
withholding. If you file form(s) MI W-4 (wages) or multiple
form MI W-4Ps, your personal exemptions claimed on all the
forms combined should not exceed your total allowable personal
exemptions claimed on your MI-1040.
Line 3: You may designate additional withholding if you expect
to owe more than the amount withheld. The amount on line 3
must be a percentage. Check with your pension administrator to
see if they permit additional withholding.
Line 4: If allowed by your pension administrator, you may enter
an additional dollar amount to be withheld from each payment.

Failure to have sufficient tax withheld from your
retirement benefits may result in a balance due on
your MI-1040 and penalty and/or interest may apply.