Taxes
Your retirement benefit is subject to federal income taxes as well as state income taxes if you live in a state that taxes income. If some of the contributions in your VRS member account were made on an after-tax basis, this money will not be taxed when it is paid to you as part of your retirement benefit.
Federal and State Withholding
To have your taxes withheld from your retirement benefit, or if you do not
want taxes withheld, notify VRS by filing a
Federal/State Income Tax Withholding
61kb.
If you do not file the form, VRS will withhold federal taxes as if
you were married with three allowances and state taxes, if applicable, as if
you had zero allowances.
IRS Form 1099
Each January, you will receive an IRS Form 1099 from VRS to use when filing your income taxes.
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