CLEVELAND: Retirees and annuitants may see a change in the amount of money they receive May 1 thanks to a new tax credit.
Public Law 111-05, The American Recovery and Reinvestment Act of 2009, was signed into law by President Obama on Feb. 17. This act authorized a tax credit for most workers including recipients of retired and annuity pay, and will reduce federal withholding tax rates.
These new federal tax rates were in place April 1 for the retired and annuity pay due May 1. The new tables can be found at www.irs.gov/pub/irs-pdf/n1036.pdf. People wanting to adjust their federal tax withholding after this tax credit takes effect must submit a new Form W-4P. This form is available at www.irs.gov/pub/irs-pdf/fw4p.pdf.
Mail a completed Form W-4P to: U. S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130; fax it to (800) 469-6559; or make the adjustment through an active myPay account online at mypay.dfas.mil/mypay.aspx.
(Courtesy of the Defense Finance and Accounting Service)
