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This year, I did an early withdrawal from an annuity and the financial company withheld 10% for taxes--standard for an annuity in this circumstance. But I'll owe a lot more than that in taxes come April. So, essentially, they didn't withhold as much as I wanted them to withhold.

I was thinking I could correct this by making another withdrawal (say, $500), and before I do this, filling out a W4-P form, specifying that $8000 be withheld. This would cover the tax from the previous withdrawal.

Is this possible? Can I specify a withholding amount ($8000) that is greater than the amount I'm withdrawing?

Related question: can I just fill out the W4-P form without making any withdrawal? Will that cause the firm to set aside $8000 as necessary and pay it to the IRS?

  • Some more of the back story available here. – mkennedy Nov 25 '15 at 19:16
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You can specify, but what are they going to do with it? If they only have your $500 - where's the rest of the $7500 is going to come from?

So it probably won't achieve what you want.

You can use form 1040-ES to pay estimated tax payments to the IRS, or if you're employed - change your withholding with the employer.

  • 1
    For payroll withholding, specifically use box 6 on W-4. Note estimated payments either must be equal over the four approximate quarters set by IRS -- too late for that this year -- or you must file 2210 with schedule AI to show each quarter individually was sufficient, unless you get safe haven for withholding that is sufficient for last year's tax; whereas withholding is treated as consistent over the year and thus timely even if it wasn't actually. – dave_thompson_085 Nov 26 '15 at 10:26

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