CHANGING YOUR TAX WITHHOLDING

Because your tax situation can change from year to year, you may want to adjust the federal or California state withholding amounts deducted from your monthly benefit payment. There are a few ways to change your tax withholding.

Mail or fax the following completed documents to ORS:


Tax Forms:
California Withholding Certificate for Pension or Annuity Payments

IRS Withholding Certificate for Pension or Annuity Payments

If you need help completing the Tax Withholding Election form, call us at (800) 732-6477 so we can assist you. However, since we cannot provide tax advice, you should contact your tax consultant, the Internal Revenue Service or Franchise Tax Board for specific information on your tax related needs.


Overview

  • 1099-R tax forms are mailed by the end of January each year.
  • If you recently moved, be sure to update your mailing address here: Address Change Form
  • You can access and download your tax statements online by logging in to the Member Portal.
  • To request a duplicate or replacement 1099-R tax form by mail, contact us by phone at (800) 732-6477 or by email at retirement.dept@sanjoseca.gov
  • Your 1099-R tax form includes the amount of retirement income you received during the tax year.


$3,000 Tax Exclusion for Retired Public Safety Officers

  • The Pension Protection Act of 2006 allows Public Safety Officers who retired either
    after attaining “normal retirement age” or for disability to exclude annually up to
    $3,000 of an otherwise taxable pension distribution from federal income taxation,
    if the money is used to pay for "qualified health insurance premiums" and is paid
    directly from the plan to the health insurer.
  • "Qualified health insurance premiums" mean premiums for coverage for the retired
    Public Safety Officer, his/her spouse, and his/her dependents by an accident or
    health plan or qualified long-term care insurance contract.
  • Please consult with a tax professional for guidance on this topic and how to claim
    the deduction. You will need to report your total eligible distribution on Form 1040,
    Form 1040A, or Form 1040NR, as applicable. Refer to Section 402(l) of the Internal
    Revenue Code and IRS Publication 575 for more information.
  • The amount shown in box 2a of Form 1099-R from the Office of Retirement
    Services will not reflect this deduction. However, retirees may provide their tax
    consultant with copies of their pay stubs, which include the year-to-date amount
    paid by members for healthcare premiums.
  • Pay stubs can be printed by members from their MemberDirect account.