Social Security tax withholding - calculated on gross benefit or after Medicare deduction?
I just submitted my Form W-4V to start having federal taxes withheld from my SS benefits (figured I'd rather do monthly withholding than get hit with a big tax bill next April). Now I'm confused about how they actually calculate the withholding. Will they take the percentage I selected (I chose 10%) from my full gross benefit amount, or will they calculate it after they've already taken out my Medicare Part B premium? The monthly difference isn't huge but adds up over the year. My full benefit is about $2,450/month, and Medicare takes about $210. Anyone know for sure how SSA handles this?
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Yuki Watanabe
The withholding is calculated on your gross benefit amount, before any deductions like Medicare premiums. So if your gross benefit is $2,450 and you selected 10% withholding, they'll withhold $245 for federal taxes. Then they'll also subtract your $210 Medicare premium, leaving you with a net payment of $1,995 each month.
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Ethan Campbell
•Thank you, that's exactly what I needed to know! Looks like I'll need to budget a bit tighter than I thought.
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Carmen Sanchez
My tax guy told me its on the FULL amount before ANY deductions. Learned that the hard way last year!!
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Andre Dupont
•That's right! And just FYI for anyone reading - you can change your withholding amount on W-4V anytime if you realize you've withheld too much or too little. I had to adjust mine twice last year as my situation changed.
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Zoe Papadakis
Just to add to what others have said - I've been getting SS for 5 years now, and the withholding is definitely taken from the gross amount before Medicare is deducted. On your SSA statement, you'll see it listed in this order: gross benefit, then tax withholding, then Medicare premium, then your net payment. If you have MySSA account online, you can see this breakdown clearly on your benefit verification letter.
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ThunderBolt7
•also remember u can change withholding % if u need to! i started at 7% but bumped to 12% when i realized i was still owing at tax time
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Jamal Edwards
Has anyone tried calling SSA to confirm this?? I've been trying for DAYS and cant get through on their 800 number!!! So frustrating!!!! Their phone system is the WORST!
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Mei Chen
•I had the same problem trying to reach them about an overpayment issue. After wasting hours on hold, I found this service called Claimyr that got me connected to an agent in about 15 minutes. They basically wait on hold for you then call you when an agent is on the line. Saved me so much frustration! Their site is claimyr.com and there's a video showing how it works here: https://youtu.be/Z-BRbJw3puU
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ThunderBolt7
when i first got my ss benefits i didnt do any withholding and BOY was that a mistake... owed so much at tax time! definitely smart to withhold something if ur benefit is taxable
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Ethan Campbell
•Yeah, that's exactly what I was worried about! I started receiving benefits in January and suddenly realized I hadn't arranged for withholding. Didn't want to get blindsided next April.
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Carmen Sanchez
My sister said they sometimes mess up the withholding when you first request it. Make sure you check your first payment after the W-4V goes through to confirm they got it right!!
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Zoe Papadakis
•This is good advice. The W-4V changes usually take 1-2 payment cycles to process, and occasionally there are errors. I recommend checking your MySocialSecurity account after your next payment to verify the withholding amount is correct (10% of your gross benefit). If it's not right, call them immediately to avoid repeated errors.
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Andre Dupont
You made a smart move with the W-4V! Just remember that if your financial situation changes (like you start working part-time or have other income sources), you might need to adjust your withholding percentage. The 10% might be enough, but some people need to withhold more depending on their total income. I had to increase mine to 15% after I started taking distributions from my IRA.
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Ethan Campbell
•That's a good point. I do have a small pension that's already withholding taxes, and I'll probably start taking minimum distributions from my 401k next year. Might need to revisit the withholding percentage after I get a better sense of my total tax situation.
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