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Empers tutorial shows retirees how to use online tax estimator
Summary
An Empers instructional video walks viewers through its tax estimator, demonstrates sample scenarios combining annuity and salary income, and explains when additional federal withholding may be needed.
Empers released an instructional video demonstrating how members can use the agency's online tax estimator at empers.n.gov to decide whether to withhold additional federal income taxes from retirement benefit payments. The video uses a sample case of a retiree receiving a $2,000 monthly annuity who also takes a job paying $45,000 a year to show how combined income can push taxpayers into higher tax brackets and increase withholding needs.
The narrator guides viewers through the estimator's steps: navigate to member info, select "tax estimator," accept the disclaimer, choose federal and state settings, enter gross monthly income and marital status, and run the calculation. Using the example, the estimator shows roughly $66 per month in federal tax when only the annuity is counted, about $268 per month when only the $45,000 job is counted, and roughly $529 per month when both incomes are combined. The video explains this increase occurs because combined taxable income moves portions of earnings into higher marginal tax brackets.
The presentation explains a simple method for estimating whether additional withholding is needed: compute the tax liability on combined income, add the separate liabilities for each pay source, and subtract to find the shortfall. The narrator notes the estimator's other fields are optional and recommends consulting a professional tax preparer or licensed CPA for situations involving credits, deductions, or unusual tax circumstances. The video also points viewers to a separate tutorial on completing form W-4P and advises entering any additional withholding amount in box 4(c).
The video emphasizes that final tax liability is determined when taxpayers file their annual return and that the estimator is a planning tool to help avoid owing taxes at filing time. It closes by encouraging viewers to use the estimator to plan their retirement budgets.
