How to Increase Federal Withholding Taxes for Military Retirement

Even on a military pension, taxes can be a complicated ordeal. In most cases, your military pension may be fully taxable. The amount owed back to the government depends on the number of exemptions you have filed on your personal allowances worksheet. The dollar amount withheld from your pension check for federal taxes can be changed to account for taxes owed at the end of the fiscal year. To do so, you must file a form with your state's military retirement office.

Instructions

1. Obtain a copy of the Pension Recipient's Federal Income Tax Withholding Authorization from your state's Department of Military and Veteran Affairs.

2. Complete the Withholding Authorization section of the form along with the Personal Identification section at the top of the form. In the withholding authorization section, list the allowances you are claiming on your personal income tax forms, specify the dollar amount you would like withheld and select the month you would like your withheld taxes to increase.

3. Wait for your state to process the authorization and update their system. You should receive confirmation from them. If after four to six weeks you still haven't heard anything regarding your form, call your state office to see if it is stuck in backlog or if an error in either delivery or processing has occurred.

Tips & Warnings

• See if you can deliver your form via email for quicker processing.

References

• Department of Military Affairs (State of Michigan): Military Retirement FAQs
• IRS.gov: Retirement Plans FAQs regarding USERRA and SSCRA; Updated November 2010

Resources

• Sample Federal Income Tax Withholding Authorization Form