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Taxes FAQs
- 1. How can I change my federal income tax withholding?
- 2. What types of taxes are deducted from my SERS benefit?
- 3. Even though I don't pay State of Illinois tax on my benefit, can I have it withheld?
- 4. I completed a W-4P for withholding, but nothing is being deducted. Why?
1. How can I change my federal income tax withholding?
Changes in withholding require completion of a new W-4P or you may submit the change in writing. The written request should include your name, last 4 digits of Social Security number, and written signature along with the changes requested. SERS is unable to accept any request to change taxes via a phone call.
2. What types of taxes are deducted from my SERS benefit?
Benefits paid by SERS (with the exception of occupational disability or monthly occupational death benefits) are considered ordinary income and are subject to federal withholding income tax. Benefits paid by SERS are exempt from Illinois tax.
3. Even though I don't pay State of Illinois tax on my benefit, can I have it withheld?
Yes. Upon request, SERS will provide a form for Illinois income tax withholding on which you may elect any dollar amount.
4. I completed a W-4P for withholding, but nothing is being deducted. Why?
Federal withholding tax is deducted according to the tax table provided by the IRS. Allowances are made for your marital status, number of exemptions, plus any nontaxable income. If, after these allowances, your taxable gross income is below the minimum required for withholding, nothing is deducted; however if you want taxes withheld, you may designate a percentage or dollar amount withheld monthly.