Updated October 21, 2026. Quick answer: The Deductions Worksheet on page 4 of the 2026 Form W-4P is the pension and annuity version of the W-4 worksheet. It adds the extra standard deduction for people 65 or older, and line 17 goes in Step 4(b) of the Form W-4P to lower the tax withheld from each payment.
What this worksheet is for
Form W-4P goes “to the payer of your pension or annuity payments.” Step 4(b) reads “Use the Deductions Worksheet on page 4 to determine the amount of deductions you may claim, which will reduce your withholding.” The instructions say what it can include: “This includes itemized deductions, the additional standard deduction for those 65 and over, and other deductions such as for qualified tips, overtime compensation, and passenger vehicle loan interest; student loan interest; IRAs; and seniors.”
The form itself is covered at Form W-4P and Step 4 at Form W-4P Step 4. The wage version of the worksheet is at W-4 Deductions Worksheet.
The worksheet line by line
| Line | What the worksheet says |
|---|---|
| Before you begin | “See the Instructions for Schedule 1-A (Form 1040) for more information about whether you qualify for the deductions on lines 1a, 1b, 1c, 3a, and 3b.” |
| 1a | “Qualified tips. If your total income is less than $150,000 ($300,000 if married filing jointly), enter an estimate of your qualified tips up to $25,000” |
| 1b | “Qualified overtime compensation. If your total income is less than $150,000 ($300,000 if married filing jointly), enter an estimate of your qualified overtime compensation up to $12,500 ($25,000 if married filing jointly)” |
| 1c | “Qualified passenger vehicle loan interest. If your total income is less than $100,000 ($200,000 if married filing jointly), enter an estimate of your qualified passenger vehicle loan interest up to $10,000” |
| 2 | “Add lines 1a, 1b, and 1c. Enter the result here” |
| 3a | “Seniors age 65 or older. If your total income is less than $75,000 ($150,000 if married filing jointly):” “Enter $6,000 if you are age 65 or older before the end of the year” |
| 3b | “Enter $6,000 if your spouse is age 65 or older before the end of the year and has a social security number valid for employment” |
| 4 | “Add lines 3a and 3b. Enter the result here” |
| 5 | “Enter an estimate of your student loan interest, deductible IRA contributions, educator expenses, alimony paid, and certain other adjustments from Schedule 1 (Form 1040), Part II.” |
| 6 (heading) | “Itemized deductions. Enter an estimate of your 2026 itemized deductions from Schedule A (Form 1040).” |
| 6a | “Medical and dental expenses. Enter expenses in excess of 7.5% (0.075) of your total income” |
| 6b | “State and local taxes. If your total income is less than $505,000 ($252,500 if married filing separately), enter state and local taxes paid up to $40,400 ($20,200 if married filing separately)” |
| 6c | “Home mortgage interest.” “enter your home mortgage interest expense (including mortgage insurance premiums)” |
| 6d | “Gifts to charities. Enter contributions in excess of 0.5% (0.005) of your total income” |
| 6e | “Other itemized deductions. Enter the amount for other itemized deductions” |
| 7 | “Add lines 6a, 6b, 6c, 6d, and 6e. Enter the result here” |
| 8a | “Limitation on itemized deductions.” “Enter your total income” |
| 8b | “Subtract line 4 from line 8a. If line 4 is greater than line 8a, enter-0-here and on line 10.” “Skip line 9” |
| 9 | “$768,700 if you’re married filing jointly or a qualifying surviving spouse”; “$640,600 if you’re single or head of household”; “$384,350 if you’re married filing separately” |
| 10 | “If line 9 is greater than line 8b, enter the amount from line 7. Otherwise, multiply line 7 by 94% (0.94) and enter the result here” |
| 11 (standard deduction) | “$32,200 if you’re married filing jointly or a qualifying surviving spouse”; “$24,150 if you’re head of household”; “$16,100 if you’re single or married filing separately” |
| 12 (additional standard deduction, 65 or older) | “Additional standard deduction. If you (or your spouse) are 65 or older.” |
| “$2,050 if you’re single or head of household”; “$1,650 if you’re married filing separately”; “$3,300 if you’re married filing jointly and both of you are age 65 or older” | |
| 13 | “Cash gifts to charities. If you take the standard deduction, enter cash contributions up to $1,000 ($2,000 if married filing jointly)” |
| 14 | “Add lines 12 and 13. Enter the result here” |
| 15 | “Add lines 11 and 14. Enter the result here” |
| 16 | “If line 10 is greater than line 15, subtract line 11 from line 10 and enter the result here.” “If line 15 is greater than line 10, enter the amount from line 14” |
| 17 | “Add lines 2, 4, 5, and 16. Enter the result here and in Step 4(b) of Form W-4P” |
A worked example
Illustration, not an IRS example. Every input is invented. Suppose a single retiree, age 65 or older, whose total income is under $75,000. Itemized deductions are below the standard deduction, and there are no tips, overtime, vehicle loan interest or cash gifts.
| Item | Illustration |
|---|---|
| Line 2, lines 5 and 13 (suppose none apply) | $0 |
| Line 3a (age 65 or older, total income under $75,000) | $6,000 |
| Line 4, computed: lines 3a and 3b added (no spouse deduction) | $6,000 (computed) |
| Line 7 (suppose itemized deductions total) | $12,000 |
| Line 10 (line 9 is greater than line 8b, so enter line 7) | $12,000 |
| Line 11 (single filer standard deduction) | $16,100 |
| Line 12 (single, 65 or older) | $2,050 |
| Line 14, computed: line 12 plus line 13 (no cash gifts) | $2,050 (computed) |
| Line 15, computed: line 11 plus line 14 | $18,150 (computed) |
| Line 16 (line 15 is greater than line 10, so enter line 14) | $2,050 |
| Line 17, computed: lines 2, 4, 5 and 16 added | $8,050 (computed) |
The $8,050 on line 17 goes in Step 4(b). It is the extra deduction that lowers withholding on top of the basic standard deduction.
Where the number comes from
The age test uses the end of the tax year, and the senior deduction lines use total income. The standard and additional standard deductions are printed on the worksheet and are covered at the 2026 standard deduction for people 65 or older. Itemized deductions come from an estimate of Schedule A. For pension lump sums, a different withholding rule applies, covered at 20 percent withholding on a pension lump sum.
Where it goes next
Line 17 is entered “here and in Step 4(b) of Form W-4P”. Step 4(c) is the companion line: “Enter in this step any additional tax you want withheld from each payment.” The Step 4(b) instruction repeats the purpose: “if you expect to claim deductions other than the basic standard deduction on your 2026 tax return and want to reduce your withholding to account for these deductions.” The tax withheld is reported on Form 1040 line 25. Form 1040-ES confirms the use: “Generally, if you receive a pension or annuity, you can use Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, to start or change your withholding from these payments.”
Edition and line numbers
This page reads Form W-4P (2026), the current file irs.gov served on 2026-10-21 (sha256 in the kit data). The Deductions Worksheet is printed on the form itself, so the line numbers here are the 2026 form’s. A different year’s form can number or word its lines differently, so work from the form you were actually given.
Common mistakes
- Using the wage version of the worksheet for a pension. The W-4P worksheet has line 12, the additional standard deduction, which the wage version lacks: “Additional standard deduction. If you (or your spouse) are 65 or older.”
- Leaving Step 4(b) blank and expecting extra deductions. The form says “If you skip this line, your withholding will be based on the standard deduction.”
- Treating the worksheet as the way to stop withholding. Choosing no withholding is a separate step, covered at Form W-4P Step 4.
Related: Form W-4P, Form W-4P Step 4, the 2026 standard deduction for people 65 or older, 20 percent withholding on a pension lump sum, Schedule A, and Form 1040 line 25.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for your pension income
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor fits your retirement
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Form W-4P (2026), Withholding Certificate for Periodic Pension or Annuity Payments: https://www.irs.gov/pub/irs-pdf/fw4p.pdf
- Form 1040-ES (2026), Estimated Tax for Individuals: https://www.irs.gov/pub/irs-pdf/f1040es.pdf
Read from the IRS documents linked above on October 21, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.