Do Social Security automatically withhold taxes or will I get a surprise tax bill later?

nope taxes arent automatic u gotta request it. my mom got hit with a 4k tax bill cause nobody told her!

Social Security doesn't automatically withhold taxes from your benefits. You need to complete a voluntary withholding request (Form W-4V) to have federal taxes withheld at 7%, 10%, 12%, or 22% of your monthly benefit. Since you're still working part-time, this is definitely something you should consider, especially if your combined income (adjusted gross income + nontaxable interest + half of your SS benefits) will exceed $25,000 for single filers or $32,000 for married filing jointly. You can download the W-4V form from the IRS website or call SSA at 1-800-772-1213 to request it. Complete it and return it to your local Social Security office. Alternatively, you can make quarterly estimated tax payments to the IRS if you prefer not to have taxes withheld from your monthly benefit.

The goverment is DESIGNED to trick seniors!!!! They know EXACTLY what they're doing by not making the tax withholding automatic!!! My brother-in-law got hit with a $7,800 tax bill his first year on SS because NOBODY at the SSA office bothered to mention taxes might be owed!!! It's a TRAP to collect penalties and interest!!!!

I went through this exact situation last year. Called SSA for THREE WEEKS trying to get through to someone to set up tax withholding after I realized it wasn't automatic. Kept getting disconnected or waiting for hours. Finally found this service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in under 10 minutes! They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU Once I finally talked to someone, it was super easy to set up the withholding. I chose 12% since I also have a part-time job. The peace of mind is totally worth it.

Just to add some clarity here - up to 85% of your Social Security benefits may be taxable depending on your combined income. The exact formula is a bit complex, but generally: - If you file single and your combined income is between $25,000-$34,000, up to 50% of benefits may be taxable - Above $34,000, up to 85% may be taxable - For married filing jointly, the thresholds are $32,000-$44,000 for 50%, and above $44,000 for 85% Since you're working part-time, you should definitely consider tax withholding or quarterly estimated payments. The W-4V form lets you choose withholding percentages of 7%, 10%, 12%, or 22%. Also don't forget about state taxes - 12 states tax Social Security benefits to some degree (CO, CT, KS, MN, MO, MT, NE, NM, RI, UT, VT, and WV).

i didn't withhold taxes when i started getting ss last year. just made sure to save enough each month for the tax bill. worked fine for me but might be harder for some people to remember to save.

btw my mom said after she got hit with that tax bill she filled out that w4v form thing everyone's talking about and faxed it to the local ss office. took like 2 months to actually start working tho so do it asap!!!

I actually just went through this process myself a few months ago! One thing I'd add is that you can also submit the W-4V form online through your my Social Security account at ssa.gov if you have one set up. It's much faster than faxing or mailing it in - mine was processed in about 3 weeks instead of the 2+ months others have mentioned. Given that you're still working part-time, I'd definitely recommend getting this set up ASAP. I chose the 12% withholding rate and it's been perfect for my situation. Better to have a small refund than owe a big chunk come tax time! You can also change the withholding percentage later if needed by submitting a new W-4V form, so don't stress too much about picking the "perfect" rate right away.

Just wanted to add my experience since I went through this same situation about 6 months ago. I was also working part-time when I started collecting SS benefits and completely panicked when I realized taxes weren't being withheld automatically. Here's what worked for me: I called the SSA number (1-800-772-1213) early in the morning around 8 AM - seemed to have better luck getting through then. The representative was actually really helpful and walked me through the whole process over the phone. She explained that I could either fill out the W-4V form or they could set up the withholding right there during the call. I went with 10% withholding since my part-time income isn't super high, and it's been working great. My first withholding showed up about 6 weeks later on my monthly statement. One tip: ask them to mail you a confirmation letter showing your withholding election is in place. That way you have documentation and peace of mind that it's actually set up correctly. Good luck with everything!

I'm in a very similar situation - just turned 64 and planning to apply for SS benefits in the next few months while continuing to work part-time. This thread has been incredibly helpful! I had no idea that tax withholding wasn't automatic and was definitely going to get caught off guard. From reading everyone's experiences, it sounds like the key points are: 1. Submit the W-4V form ASAP (either online through my Social Security account or by calling early morning) 2. Choose a withholding percentage based on your total expected income 3. Allow 3-6 weeks for processing 4. Request a confirmation letter for your records I'm bookmarking this thread - you all probably saved me from a nasty tax surprise next year! Thanks to everyone who shared their experiences, especially the practical tips about timing calls and using the online portal.

This thread has been incredibly informative! I'm in a similar situation - recently applied for Social Security and completely overlooked the tax withholding aspect. Based on everyone's advice, I'm planning to call the SSA first thing tomorrow morning to set up withholding. One question for those who've been through this process: how do you determine what percentage to choose? I'll be working about 20 hours a week with Social Security benefits, but I'm not sure if I should start with 10% or 12%. Is it better to err on the side of withholding too much rather than too little? I'd rather get a small refund than owe money next April! Also, has anyone tried the online W-4V submission through the my Social Security portal? Curious if that's really faster than calling, since phone wait times seem to be hit or miss.

Wow, I'm so glad I found this thread! I literally just started my Social Security benefits last month and had NO idea about the tax withholding situation. I've been working part-time at a local bookstore (about 15 hours a week) and just assumed taxes would be handled automatically like they were when I was working full-time. Reading through everyone's experiences here is both eye-opening and terrifying - I definitely don't want to get hit with a surprise tax bill next year! It sounds like I need to get that W-4V form submitted ASAP. For someone who's brand new to this whole process, would you recommend starting with 10% withholding? My part-time income is pretty modest (around $800/month) but combined with SS benefits I'm thinking I'll definitely be over those income thresholds mentioned earlier. Also, has anyone had experience with how long it takes for the withholding to actually show up on your monthly SS statement once it's processed? I want to make sure I can track that it's working properly. Thank you all for sharing your experiences - this community is such a lifesaver for navigating these confusing government processes!