Retirees with pension income: Do a Paycheck Checkup

September 7, 2018

If you’re a retiree, you should check to make sure you’re paying enough tax during the year. The Tax Cuts and Jobs Act changed the way tax is calculated for most taxpayers, including retirees.

Because of this law change, if you receive a monthly pension or annuity check, you may need to adjust the amount of tax you pay during the year. The easiest way to check is to use the IRS Withholding Estimator or Publication 505.

You can pay taxes throughout the year anytime. For more information, visit IRS.gov/payasyougo.