How to change tax withholding on Social Security benefits - determining the right amount
I just realized I'm getting killed on taxes this year because I'm not having enough withheld from my Social Security benefits! I started receiving retirement benefits last year and completely forgot about tax withholding. My accountant says I might owe penalties for underpayment when I file next month. I'd like to set up withholding for this year ASAP to avoid another mess. Does anyone know the process for requesting tax withholding from SS payments? And realistically, how do I figure out WHAT AMOUNT to have them withhold so I don't end up with another surprise tax bill? My situation: married filing jointly, pension income of about $36k, and SS benefits around $2,450/month. Thanks for any guidance!
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Vera Visnjic
You'll need to submit Form W-4V (Voluntary Withholding Request) to the SSA. You can only choose standard percentages - 7%, 10%, 12%, or 22% of your monthly benefit. No custom amounts allowed. Based on your income situation, you should consider having at least 12% withheld since both your pension and a portion of your SS benefits are likely taxable. You can download the form from ssa.gov or call and request one be mailed to you.
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Mason Lopez
•Thank you! I didn't realize there were only specific percentages available. Do you know if I can submit this form online through my SSA account or do I need to mail a physical copy?
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Jake Sinclair
i had the same problem last year lol. you gotta send in that W4-V form and pick one of those percentages they allow. I chose 10% withholding but still ended up owing a bit. depends on your other income tho. the hardest part was actually getting someone at SSA to answer questions about it when i was filling out the form
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Mason Lopez
•Ugh, that's what I'm worried about - picking a percentage and STILL owing at tax time. Did you have trouble reaching SSA? I've tried calling a few times and can never get through.
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Brielle Johnson
I highly recommend using the IRS Withholding Estimator tool on irs.gov to figure out the right percentage. Since you're married with pension income, you need to look at your COMBINED tax situation. For SS benefits specifically, remember only 50-85% of your benefits are taxable depending on your combined income. The W-4V form needs to be PRINTED, SIGNED and either mailed to your local SSA office or delivered in person. They don't accept online submissions for this particular form.
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Honorah King
•This is good advice about the IRS tool but I tried using it last year and found it super confusing! Not very user friendly if you're not a tax person. Ended up just guessing and picked 12% withholding.
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Oliver Brown
After multiple failed attempts to reach the SSA by phone to answer my tax withholding questions, I found Claimyr (claimyr.com) and it was a GAME CHANGER! It got me connected to a real SSA agent in about 20 minutes instead of waiting on hold for hours or getting disconnected. The agent helped me understand exactly which withholding percentage made sense for my situation. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - worth checking out if you need specific answers about your withholding situation.
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Mason Lopez
•Thank you for this suggestion! I've been trying to reach someone for days with no luck. I'll look into this option because I really want to speak with someone to make sure I'm choosing the right withholding percentage.
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Mary Bates
DONT FORGET that the withholding doesn't start immediately!!! It can take 1-2 months for the SSA to process your W-4V form and actually start the withholding. So if you're worried about next year's taxes, SUBMIT NOW. Also, you might want to make quarterly estimated tax payments for this year if you're worried about penalties. The IRS has a form 1040-ES for that.
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Vera Visnjic
•Excellent point about the processing time. And yes, making quarterly estimated tax payments is smart to avoid underpayment penalties. Just remember the deadlines are April 15, June 15, September 15, and January 15 of the following year.
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Clay blendedgen
me and my wife had this same exact problem!! we didnt withhold anything and got hit with a $4,300 tax bill plus penalties last year. the worst! we ended up choosing 12% withholding and that seems to be working ok for us. we also have pension income about $42k total plus both our SS benefits. good luck!
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Honorah King
•$4,300?! Ouch! That's painful. This is why our tax system is so frustrating. They make it so complicated to figure out the right amount to withhold.
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Jake Sinclair
so did anyone actually answer how to determine the right amount? i'm still confused about this. is there some formula based on your other income?
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Brielle Johnson
•There's no simple formula because it depends on your total income situation. But here's a rough guide: If your combined income (AGI + nontaxable interest + 1/2 of SS benefits) is between $32,000-$44,000 for married filing jointly, about 50% of your benefits are taxable. Over $44,000, up to 85% becomes taxable. So if you're well over $44,000, the 12% or 22% withholding options are usually more appropriate. Below that threshold, 7-10% might be sufficient.
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Mason Lopez
Thank you all for the advice! I've downloaded the W-4V form and am going to try for 12% withholding based on your suggestions. I'll also check out that IRS Withholding Estimator to be sure. And I'm definitely going to look into Claimyr since I still have questions about how this affects my specific tax situation. Really appreciate everyone's help!
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Vera Visnjic
•Smart approach! Remember you can always submit another W-4V later in the year if you need to adjust the percentage. Just be aware of that 1-2 month processing time whenever you make changes.
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