Withholding for Annuities and Pensions

You must have a Minnesota Tax ID Number. If you do not have one, you can register for one online or by phone.

You must also have an active withholding tax account. Log in to our e-Services system to add one.

1. Have the recipient complete and send you federal Form W-4P, Withholding Certificate for Pension or Annuity Payments
2. Calculate the withholding amount using the tables in the Minnesota Income Tax Withholding Instruction
3. Send federal Form 1099-R to the Minnesota Department of Revenue by January 31 each year

When filing your returns:

• Include the tax withheld amount in the total amount withheld field
• Indicate if your tax withheld is greater than your wages using the appropriate box
• Do not include the recipient of the pension payments in the number of employees field
• Do not include the payment amount in the wages field