Change in pension withholdings lead to some state retirees owing IRS thousands: ‘Flabbergasted’
RALEIGH, N.C. (WWAY) — Just a few weeks left to file your taxes and some North Carolina retirees are shocked to find out how much they owe in federal taxes due to changes to what’s withheld in federal taxes from state retiree’s pension checks.
Eddie Hall says, “I was flabbergasted. I didn’t know how to react. My wife and I are both on fixed incomes.”
Hall’s CPA let him know he will owe more than $2,400 in federal taxes.
“This was going to be a financial drain on me,” Hall says.
Hall a former North Carolina teacher and now retiree says in previous tax years, he always got a refund, but this year his CPA informed him, that Hall had zero withheld from his pension checks in 2023. Hall says he called the North Carolina Department of State Treasurer, and a representative explained the changes made for the 2023 tax year. He adds, “She said in December of 2022, all state retirees were notified electronically that you were going to have to do another application for withholding.”
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