Instructions For Arizona Form A-4 - Annuitant'S Request For Voluntary Arizona Income Tax Withholding
ADVERTISEMENT
1ARIZONA FORM
Annuitant’s Request for Voluntary
A-4P
Arizona Income Tax Withholding
If you would rather more closely approximate your tax liability from last year,
How do I Determine Which Percentage to Elect?
use your tax liability from your 2009 Arizona income tax return. Divide that
In an effort to assist annuitants in electing a withholding percentage, the
number by the number of distributions in calendar year 2010. This will be the
following simple examples are provided for general guidance. However,
amount of withholding you will try to have withheld out of each distribution. For
each annuitant must take into consideration the particular facts of their own
instance, if your 2009 tax liability was $1,800 and you receive a distribution
situation and adjust the calculation accordingly.
once a month (12 distributions a year) divide $1,800 by 12 (1,800 / 12 =
150.00). This is your withholding goal per distribution. Next, divide your
If you want to keep your withholding approximately the same as last year,
withholding goal by your taxable distribution amount, $6,000 in this example,
you can use your federal Form 1099-R for 2009 or your last distribution
to determine the percentage of withholding to taxable distribution (150.00 /
statement to calculate which withholding percentage to elect. For example,
6,000 = .025 or 2.5%). An election of 1.8% would result in $108.00 (6,000
if box 2a of federal Form 1099-R shows $36,000 in taxable distributions and
x 1.8% = 108) withheld for Arizona from each distribution ($1,296 annually),
box 10 shows $1,200 in state income tax withheld, divide box 10 by box 2a
while electing 2.7% would result in $162.00 (6,000 x 2.7% = 162) withheld for
to determine your withholding percentage (1,200 / 36,000 = .033 or 3.3%).
Arizona from each distribution ($1,944 annually). Be sure to take into account
In order to keep your withholding the same as 2009, choose 2.7% (36,000 x
any amount already withheld for 2010.
.027 = 972) and an additional $19.00 per monthly distribution (1,200 - 972 =
228 / 12 = 19.00). Be sure to take into account any amount already withheld
for 2010. If you want to withhold more, choose one of the higher percentages
or choose to have an additional amount withheld.
To use the worksheet below, enter your annual
CAUTION: Underwithholding can result in payment of tax due when you
taxable distribution, the number of distributions you
fi le your Arizona return and/or underpayment penalties.
receive each year, your annual withholding goal, the
amount already withheld for 2010, the number of
distributions remaining in 2010, and select the
largest percentage on line 10 that is less than line 9.
The worksheet will do the math for you!
Example: This example assumes this distribution is your only income and your situation is the same as last year. If you receive a distribution once a
month and your federal Form 1099-R shows $48,000 in box 2a and $2,400 in box 10, $900 has already been withheld from your distributions for 2010,
there are 6 distributions remaining in the calendar year, and you want to keep your withholding approximately the same, the following worksheet shows
how to keep your Arizona withholding the same.
Example:
Your Calculation:
Line 1: Annual taxable distribution.
$48,000
Line 2: Number of distributions per year.
12
Line 3: Divide line 1 by line 2. This is the taxable amount
48000 / 12 =
$4,000
per distribution.
/
=
Line 4: Annual withholding goal.
$2,400
Line 5: Amount already withheld for the calendar year.
$900
Line 6: Balance of withholding for the calendar year.
2400 - 900 =
$1,500
-
=
Line 7: Number of distributions remaining in the calendar year.
6
Line 8: Divide line 6 by line 7. This is your Arizona withholding
1500 / 6 =
$250.00
goal per distribution.
/
=
Line 9: Percentage: divide line 8 by line 3.
250 / 4000 =
6.25%
=
/
%
Line 10: Withholding percentage that is less than line 9.
5.1%
Select Withholding Percent
Check this box on line 1 of Form A-4.
Line 11: Multiply line 10 by line 3.
5.1% x 4000 =
$204.00
=
x
Line 12: Subtract line 11 from line 8. Enter this amount in the
250 - 204 =
$46.00
additional amount space on line 1 of Form A-4.
=
-
Return to Percent Election
ADOR 91-0042 (6/10)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial