Should I be contributing to voluntary Federal Income Tax withholding on my SS benefits (SSA-1099 Box 6)?

Yes, you probably should have federal taxes withheld if you're working AND collecting SS. Many retirees get surprised at tax time because they don't realize Social Security benefits can be taxable. If your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $25,000 for single filers or $32,000 for joint filers, up to 85% of your benefits may be taxable. You can file Form W-4V with Social Security to request 7%, 10%, 12%, or 22% withholding. Given your part-time income plus benefits, 10% withholding might be about right, but everyone's situation is different.

I dont do witholdng and just pay quarterly estimated taxes. Gives me more control then letting the government hold my $$ all year!!

There's actually a simple formula to estimate if you need withholding. If you're single and your combined income (AGI + half of SS benefits) exceeds $25,000, then start withholding. At your income level ($17,000 work + $22,200 SS annually), you're at $28,100 combined income so definitely in the taxable range. You have three options: 1. Voluntary withholding via Form W-4V (7%, 10%, 12% or 22%) 2. Increase withholding at your part-time job 3. Make quarterly estimated tax payments Option 1 is usually easiest. The W-4V form is available on SSA.gov and can be mailed or taken to your local office.

When I first started getting Social Security, I had THE SAME QUESTION! Nobody tells you this stuff! I ended up owing over $2,000 in taxes my first year because I didn't have any withholding. After that nightmare, I immediately filled out the W-4V for 12% withholding. Haven't had any tax surprises since then. Just know that even with withholding, you might still owe some at tax time depending on your other income. But at least it won't be such a shock!

I was in a similar situation last year trying to reach someone at SSA to help with tax withholding questions. Spent hours on hold and got disconnected three times! Finally I discovered a service called Claimyr (claimyr.com) that got me through to a real person at SSA in under 10 minutes. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU Once I got through, the agent explained that the W-4V form is really simple to fill out. You just select which percentage you want withheld. I chose 10% and it's been working well for my situation which is similar to yours.

just remmber that if u have money withheld its just an interest free loan to the government! i rather keep MY money until i have to pay it

My sister just got hit with a HUGE tax bill because she didn't withhold anything from her SS benefits. She's on a payment plan with the IRS now. Don't let that happen to you!

When i first got social security i was confused about all this tax stuff too. the thing that surprised me is that they only give u those 4 choices for withholding (7, 10, 12, or 22 percent). why cant i just pick my own amount?? its weird but i just went with 7% since im in a lower bracket.

BE CAREFUL with the W-4V form! Make sure you check the right box for the percentage you want. My husband accidentally selected 22% instead of 12% and way too much was taken out for 3 months before we could get it fixed. The SSA is SLOW to process changes!!

I've been dealing with this exact situation for the past two years! Based on your income levels, you're definitely going to owe taxes on your Social Security benefits. With $17K from work plus $22K+ from SS, you're well above the threshold where benefits become taxable. I started with 7% withholding but found I was still owing at tax time, so I bumped it up to 10% and that's been about right. The key is to look at your total tax situation - not just the SS portion. Since you're still working part-time, you might also want to check if your employer is withholding enough from your paychecks. One tip: keep track of how much you owe this year when you file, then use that to gauge if 10% withholding will be enough going forward. You can always adjust the percentage later if needed, though it takes a while for changes to take effect.

I'm in almost the exact same boat! Just turned 67 and getting about $1,900/month in SS plus working part-time for around $15,000/year. Last year I got blindsided with a $1,400 tax bill because I had no idea my Social Security was taxable. After reading through all these responses, I think I'm going to go with the 10% withholding option too. It sounds like that's the sweet spot for our income level. I've been putting off dealing with this but seeing everyone's experiences here has convinced me I need to get that W-4V form filled out ASAP. Thanks for asking this question - you're definitely not alone in being confused about this! The SSA really should do a better job explaining the tax implications when people first start receiving benefits.

I went through this same situation about 3 years ago when I first started collecting Social Security. The key thing to understand is that whether your SS benefits are taxable depends on your "combined income" - which is your adjusted gross income plus any nontaxable interest plus half of your Social Security benefits. With your part-time income of $17,000 plus SS benefits of about $22,200 annually, your combined income is around $28,100 (17,000 + 11,100). Since you're over the $25,000 threshold for single filers, up to 85% of your benefits could be taxable. I'd recommend starting with 10% withholding using Form W-4V. You can download it from ssa.gov or pick one up at your local SSA office. Just be prepared - it can take 30-60 days for the withholding to actually start once you submit the form. And definitely keep copies of everything you send them! The peace of mind is worth it. I used to stress about owing money at tax time, but now I actually get a small refund each year.

I'm in a very similar situation and really appreciate everyone's detailed responses here! I'm 69, getting about $1,750/month in SS benefits, and working part-time making around $14,000/year. Like many of you, I got hit with an unexpected tax bill last year because I had no idea Social Security could be taxable. After reading through all these experiences, I'm definitely going to submit the W-4V form for 10% withholding. It sounds like that percentage works well for our income bracket. One question though - for those who have the withholding set up, does it show up clearly on your monthly SS deposit statement? I want to make sure I can easily track how much is being withheld throughout the year. Also, has anyone here ever had to change their withholding percentage after setting it up? I'm wondering how difficult that process is in case 10% turns out to be too much or too little for my situation.

I'm in a similar situation and really glad you asked this question! I'm 71 and just started getting SS benefits last year while still working part-time. I made the mistake of not having any withholding and ended up owing about $1,800 at tax time - definitely learned my lesson the hard way! Based on all the great advice here, I just submitted my W-4V form last week requesting 10% withholding. It sounds like that's the sweet spot for people in our income range. One thing I learned from calling SSA (after being on hold forever) is that you can also stop the withholding anytime by submitting a new form if your situation changes. The agent also mentioned that if you're getting close to the April deadline and haven't set up withholding yet, you might want to make a quarterly estimated payment to avoid penalties while waiting for the W-4V to take effect. Just thought I'd share that tip in case it helps anyone else who's cutting it close!

I'm in a very similar situation and this thread has been incredibly helpful! I'm 65, just started collecting SS benefits a few months ago ($1,650/month), and I'm still working part-time making about $16,000/year. Like so many others here, I had no idea Social Security benefits could be taxable when I first signed up. Reading through everyone's experiences, it's clear that 10% withholding is probably the right choice for our income levels. I'm definitely going to download that W-4V form and get it submitted this week. Better to be safe than sorry! One thing I'm curious about - has anyone here tried using the IRS withholding calculator online to double-check what percentage might work best? I found it at irs.gov and it seems like it might help confirm whether 10% is the right amount for my specific situation. Just thought I'd mention it in case others want to cross-check their decision. Thanks to everyone for sharing their experiences - it's so reassuring to know we're all navigating this together!

I'm 66 and went through this exact same confusion when I started getting SS benefits last year! Nobody warned me that Social Security could be taxable - I thought it was like getting back money I'd already paid in. Boy was I wrong! I ended up owing about $900 at tax time because I had zero withholding. After that wake-up call, I immediately filed the W-4V form for 10% withholding. It's been working perfectly - I actually got a small refund this year instead of owing money. The form is super simple to fill out once you download it from ssa.gov. Just make sure you clearly mark which percentage you want (I almost checked the wrong box!). And definitely mail it certified or take it to the local SSA office in person so you have proof they received it. With your income levels, 10% withholding sounds like the right choice. The peace of mind is totally worth it - no more tax day surprises!