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A portion of your benefit is subject to federal and state income tax. At your retirement SERS determined the amount of the benefit that is taxable and the amount that is non-taxable. A disability benefit is taxable as ordinary income (replacement of wages or salary) under federal tax law until you reach minimum retirement age; then it is taxable as an annuity or pension.   [Read More...]

By January 31 of each year SERS sends you a tax form (IRS Form 1099-R) for the previous calendar year which provides information on the benefit amounts you received for the year, the amount of taxes withheld and other tax information.  With the Form 1099-R SERS sends the Recipient Income Tax Information pamphlet explaining your form and providing other detailed federal and state tax information. 

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SERS is required to withhold federal income tax from your monthly benefit amount unless you elect in writing not to have any withholding. You need to complete and file an Internal Revenue Service (IRS) Form W-4P with SERS to instruct the retirement system on whether income tax should be withheld.   [Read More...]

If you do not file this form SERS withholds as if you had filed married with three withholding allowances.  You can change your withholding at any time by filing a new Form W-4P.

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Your SERS benefit amount may be subject to state and/or local taxes. You should consult the appropriate tax department in the area you live to determine your obligations. For residents of Ohio, your SERS benefit amount is subject to state income taxes.   [Read More...]

SERS is not required to withhold amounts for state or local taxes.  For Ohio residents only SERS will withhold an amount for Ohio state income taxes if you complete and return an Ohio State Tax Withholding form indicating the specific amount you wish to have withheld.  This amount can be changed at any time by submitting a new form to SERS.

You should consult your own tax advisor, the IRS, or state or local tax departments for advice on your specific tax questions.  SERS cannot provide individual tax advice.

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