New Federal Tax Tables:

MainePERS is using the new federal tax withholding tables for the “Making Work Pay” tax credit that is part of the American Recovery and Reinvestment Act of 2009.

Retirees and the “Making Work Pay” Credit:

Retirees do not qualify for the “Making Work Pay” credit, unless they receive earned income. However, the new withholding tables apply to all taxpayers, including retirees. The IRS has a withholding calculator retirees and others can use to make sure enough tax is being withheld from their benefit payment. Retirees can adjust their withholding by filing Form W-4P, Withholding Certificate for Pension or Annuity Payments. Contact MainePERS for assistance with making changes to your W-4P.