TAX INFORMATION/1099-R

Police & Fire 


Tax Information 

Note: ORS does not offer tax or legal advice. On this page, ORS is providing certain tax-related information to you but is not providing tax advice. For questions regarding tax or legal matters, consult with a professional advisor; the  Internal Revenue Service  or  Franchise Tax Board. 

Tax Withholdings 

When you retire, you submit a completed tax withholding form to ORS.  

  • State Income Tax Withholding: ORS only withholds state income taxes for California. ORS does NOT withhold state income tax for any other state.
          - If you reside or move out of state, California income tax will not be withheld, and an updated Tax Withholding form must be submitted. 
  • If you reside outside of the U.S.: for information and instructions, please see IRS Form and EDD Form DE-4P. 
     

Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Annual Notice 

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) requires that ORS notify retired members each year that they may change their tax withholding election. 

ORS TEFRA Annual Tax Withholding Notice  
 

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  

FAQ IRS Form W-4P and W-4R  


1099-R Annual Tax Reporting Statement 

  • 1099-R tax forms are mailed by the end of January each year. 
  • If you recently moved, be sure to update your mailing address using the Change of Address 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.