Suggestions

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Add option to withhold taxes from pension just like salary

US Military retired pay acts like a salary in the sense that you can have income tax withholding taken out of your retired pay, but it is different than a salary in that FICA taxes are not taken. I tried to model it as a salary and FICA taxes were being automatically taken out. A checkbox like the one for salary that allows you to set a withholding percentage would allow me to withhold income taxes but not have FICA removed.

14 votes

Tagged as Suggestion

Suggested 22 February 2023 by user Kevin

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  • 22 February 2023 Kevin suggested this task

  • 22 February 2023 Kyle Nolan approved this task

  • avatar

    More broadly, allow any income type to specify a withholding.

    20 April 2023
  • avatar

    FWIW, I just modeled my military pension as a custom income. Don’t check “counts as wage income” and check “withhold some for taxes” and PL handles it pretty well.

    That said, I’ve still upvoted :)

    Probably just as important is the suggestion to allow different state vs federal taxation since some states don’t tax our pensions at all.

    18 September 2023