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Form W-4P Step 2 Line 2bi

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February 21, 2025
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I'm retiring from my job on May1 my income is already taxed. I will start getting my pension in June. My husband will continue working and his income is taxed. His annual pay is $40,200. We file married jointly. I need to know what my entry for step 2 line 2bi would be? I've had some people tell me to leave it blank or put zero down. What is the correct entry for this line>

Best answer by MonikaK1

The instructions for Form W-4P, Line 2bi, indicate that If you (and/or your spouse) have one or more jobs, then enter the total taxable annual pay from all jobs, plus any income entered on Form W-4, Step 4(a), for the jobs less the deductions entered on Form W-4, Step 4(b), for the jobs. Otherwise, enter “-0-” .

If you have already determined that your spouse's pay has adequate withholding, considering your other income, you could opt to enter zero.

There are some good examples in the IRS Instructions for Form W-2P:

Example 1.

Taylor, a single filer, is completing Form W-4P for a pension that pays $50,000 a year. Taylor also has a job that pays $25,000 a year. Taylor has no other pensions or annuities. Taylor will enter $25,000 in Step 2(b)(i) and in Step 2(b)(iii).

If Taylor also has $1,000 of interest income, which they entered on Form W-4, Step 4(a), then they will instead enter $26,000 in Step 2(b)(i) and in Step 2(b)(iii). They will make no entries in Step 4(a) on this Form W-4P.

If you are married filing jointly, the entries described above do not change if your spouse is the one who has the job or the other pension/annuity instead of you.

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