Attention Connecticut Retirees,
CSEA has just found out that in the coming days, you will receive a letter from the State of Connecticut Payroll Services Division. It is a legitimate letter stating that you will need to fill out a newly required form, the CT-W4P form (Withholding Certificate for Pension or Annuity Payments) , and return it to the State of CT by December 15th. The form will be included with the letter.
This applies to all retirees living in the State of Connecticut only. CSEA wants to help you be aware of this change that the state of Connecticut is making. This new state law requirement (Connecticut General Statute §12-705, as amended by 2017 Conn. Pub. Acts 147, §6) has been implemented by the State of CT Revenue Services and applies to ALL retirees living in the State of Connecticut, both public and private sector retirees. All pensioners and annuitants must fill out this form for any monthly distribution you receive annually.
After filling out the form you need to send it to The State of CT Comptroller’s Office, 55 Elm St., Hartford, CT 06106, Attention: Active and Pension Payroll Services Division, Elizabeth Hendrickson by mail, you can also fax it to 860-702-3489, or email it as an attachment to email@example.com.
They are certainly not giving you much notice, but if you don’t return this form to them by December 15th they will default your withholding amount to 6.99%. If you are over-withheld, you will be able to adjust it when you file your taxes in 2018, and get the refund then. Retirees are no longer permitted to specify a flat dollar amount to be withheld.
I cannot, nor can CSEA, provide you with tax advice – I can only tell you that all retirees living in the State of Connecticut from both the public and private sectors, all pensioners and annuitants, are now required to fill out this form. If you do not send this form in, and if you do not have enough Connecticut income tax withheld from your pension or annuity distributions during a taxable year, you may be responsible for the payment of estimated tax, and you may be subject to interest and penalties as well.
Make sure before sending the form in that you make a copy for your own tax records.