Social Security retirement tax withholding - forgot to set up on application, what now?

Don't worry too much. You can set up tax withholding after benefits start. I did it by filling out form W-4V. You choose the percentage you want withheld (7%, 10%, 12%, or 22%). Just print the form from SSA website, fill it out and mail to your local SS office.

This is a common concern! You can add tax withholding at any time by submitting Form W-4V (Voluntary Withholding Request). You'll select a withholding percentage - options are 7%, 10%, 12%, or 22% of your monthly benefit. You cannot request a specific dollar amount. The form needs to be printed, completed, and either mailed or hand-delivered to your local Social Security office. You cannot submit this form online or via MySocialSecurity account. Processing typically takes 30-60 days to take effect.

I went thru the EXACT same thing when I applied last year!!!! There IS a tax withholding section in the online application but its super easy to miss because its labeled something weird. I panicked too but was able to fix it. You have two options: 1) call SSA and ask them to add withholding before payments start or 2) submit the W-4V form. DEFINITELY do one or the other because I didn't withhold at first and got hit with a HUGE tax bill I wasn't expecting!!!

FYI if your already getting other income with withholding (like from a part time job or pension), you can also just increase that withholding to cover your SS benefits instead of having SS do the withholding directly. Thats what my tax guy recommended for me.

I'd recommend calling the SSA directly about this since your application is still being processed. They can likely add the withholding request before your payments begin, which is much easier than doing it retroactively. Unfortunately, reaching SSA by phone can be extremely frustrating right now - wait times are often 2+ hours with frequent disconnects. I recently discovered a service called Claimyr (claimyr.com) that got me through to a live SSA agent in about 20 minutes instead of hours of holding. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. Completely worth it for issues like yours where you need to make changes before processing completes.

Just to warn you, even if you submit the W-4V right away it might not take effect for your first payment. The backlog at some SS offices is crazy right now. Mine took almost 2 months to actually start withholding!!! Put some money aside just in case.

You know, I didn't bother with withholding at all when I started collecting last year. Instead, I just make quarterly estimated tax payments. Gives me more flexibility than the fixed percentage options on the W-4V. Something to consider if you have irregular income or want more control over your cash flow throughout the year.

Btw not everyone needs withholding on SS. Depending on your total income, your benefits might not even be taxable. If SS is your only income, you probably won't owe taxes on it. But if you have other substantial income, up to 85% of your SS can be taxable. This confuses a lot of people.

My neighbor had this same problem! She ended up just going in person to the local office with the W-4V form filled out. Said it was way faster than trying to call or mail it in.