The 2017 Federal Tax Reform legislation means fewer federal taxes will be withheld from your 2018 benefit payments than were withheld in 2017 or before. This new legislation only affects your benefit payment’s federal tax deductions. Your state tax deductions will stay the same. Uncle Sam is now requiring less of your benefits, so we're taking less out each month.
Still having trouble understanding what tax withholdings are and how to determine your filing status? The IRS explains these concepts further on their website, here.
Minimum Tax Withholding
If you've elected to have a specific amount of money withheld from your taxes, we are continuing to honor your wishes, and your monthly benefit payment won't change. Also, if you made changes to your insurance or other standard deductions, you may even see a decrease in your monthly benefit.
You can change your withholdings at any time. Follow the steps below to make changes instantly in your ORBIT account!
Choosing Income Tax Withholding Preferences
If you are already receiving a benefit, this information can now be submitted on our secure website called ORBIT.
To change your withholding, complete the following steps:
- Login to ORBIT. If you have not used ORBIT before, you will need to register by clicking on the Register button on the same page. To complete the registration, you need to supply your Social Security number, birth date, and the net pay from your most recent benefit payment.
- Once logged in, click on the tab “Maintain Tax Withholding Election” tile on the Retiree “Welcome” screen (see example below).
- Click on the link “Change your current tax withholding for this account?” near the bottom of the page.
- Enter the changes you would like to make and click “Save.”
- If you are in the process of applying for benefits, you will need to complete a paper copy of Form 290 and submit it to the Retirement System by mail or fax.