Social Security benefits taxation question - Do I need 7% withholding with a dependent child?

Social Security benefits can be taxable, but it depends on your total income. For individuals, if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $25,000, then up to 50% of benefits may be taxable. Above $34,000, up to 85% may be taxable. Having a dependent doesn't directly affect SS taxation, but it could impact your overall tax situation. Given your pre-retirement income and benefit amount, you might have some taxable SS benefits, so some withholding might be prudent. You can always adjust your withholding by submitting form W-4V to SSA if needed.

DONT DO IT!!! I had them withhold taxes from my SS for 2 yrs and it was a complete waste!!! The government already took our money once when we earned it, now they want to tax our benefits too?? I stopped the withholding last year and didn't owe anything when I filed. The whole system is RIGGED against seniors!!

i have custody of my grandson too and i dont have any tax taken out of my ss check. my tax person told me with the child tax credit and my income level i dont owe anything. but everyones different tho. maybe talk to a tax person before you decide?

The taxation of Social Security benefits is based on your provisional income, which includes your adjusted gross income, tax-exempt interest, and half of your Social Security benefits. For 2025, if you're filing as Head of Household (likely with your dependent), taxation thresholds would be: - If provisional income is below $25,000: No tax on SS benefits - Between $25,000-$34,000: Up to 50% of benefits taxable - Above $34,000: Up to 85% of benefits taxable With half-year employment at $73K (~$36.5K) plus half your annual SS ($14,700), you'd likely have some taxable benefits. However, child tax credits and other deductions could offset this. You may want to use the IRS Tax Withholding Estimator or consult a tax professional to determine the optimal withholding. Form W-4V allows you to adjust or cancel withholding at any time.

my sister hsd same issue last yr. got a dependent grandkid too. she stopped witholding and put the money in seperate account each month just in case. at tax time she only owed like $300 so she kept the rest. smart move imho

Have you tried calling SSA to ask about your specific situation? I know their hold times are ridiculous... I was trying to get an answer about my own withholding question last month and kept getting disconnected after waiting for an hour! Finally I found this service called Claimyr (claimyr.com) that got me through to an agent in about 20 minutes. They have a demo video at https://youtu.be/Z-BRbJw3puU if you want to see how it works. The agent I talked to was able to run some numbers based on my specific situation and give me better guidance than I found online. Might be worth trying if you want advice specific to your situation with your dependent.

One important factor to consider is what other income you might have during retirement besides Social Security. If you have pension payments, IRA/401k distributions, or investment income, that could push more of your Social Security benefits into taxable territory. The 7% withholding might be appropriate if you have these other income sources. With a dependent child, you should qualify for the Child Tax Credit which is $2,000 for 2025 (with up to $1,600 refundable). This could offset any tax liability from your Social Security benefits being partially taxable. You might want to complete a projected tax return for 2025 based on your estimated full-year income to see if the withholding is necessary.

As others have mentioned, you can change your withholding at any time by submitting a new Form W-4V to Social Security. If you're uncertain, one approach is to calculate your expected tax liability for the year and then set withholding to cover that amount. Another option is to make quarterly estimated tax payments instead of having withholding from your SS benefits. This gives you more control and access to your full benefit amount throughout the year.

Dont forget that if ur in a state that taxes SS (there are 12 of them) u might need state withholding too!!! The system is BROKEN when they tax our SS that we already paid into our whole lives!!!!

i forgot to say, i changed my witholding once and it was super easy. just filled out the form and gave it to my local office. took effect the next month i think