Volunteer Income Tax Assistance (VITA) Certification Practice Test

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Can Warren submit a Form W4-P to have tax withheld on his pension?

True
False
Only if he has dependents.
Only if he is under 65.

The correct answer is: True

Warren can submit a Form W4-P to request withholding on his pension payments. This form is specifically designed for recipients of pensions and annuities to instruct the payer on how much federal income tax to withhold from their payments. It allows individuals to specify the amount of tax they wish to have withheld, based on their personal tax situation. The process of submitting Form W4-P provides tax liability management for pension recipients, who may want to avoid a tax bill when filing their return or prefer not to wait until the end of the year to settle their tax obligations. This flexibility in withholding aligns with the needs of retirees and others who receive pension income, which is why the statement is true. Other considerations, such as the presence of dependents or age, do not restrict the ability to submit Form W4-P for withholding on pension payments.