Social Security tax withholding confusion - calculated before or after Medicare deduction?

its calculated on the gross amount before medicare is taken out. i went thru this last year when i started drawing ss benefits. they take the percentage you choose (7%, 10%, etc) from the total benefit amount, THEN they subtract medicare.

The withholding is calculated on your gross Social Security benefit amount before any deductions (including Medicare). When you complete Form W-4V, you can select a withholding percentage of 7%, 10%, 12%, or 22% of your gross benefit amount. For example, if your monthly benefit is $2,500 and you select 10% withholding, SSA will withhold $250 for federal taxes regardless of your Medicare premium amount. The Medicare premium is a separate deduction entirely. Keep in mind that withholding is completely voluntary for Social Security benefits. You might want to use the IRS withholding estimator to determine the appropriate percentage based on your combined income sources.

Went through this exact thing! Yes, withholding is based on gross amount before Medicare. But something to consider - if you're really worried about taxes, you might be better off making quarterly estimated tax payments instead of using SS withholding. More flexibility that way. We had to adjust our withholding THREE TIMES last year to get it right!

I've been dealing with this headache for three years now. Everyone above is correct - withholding is calculated on the GROSS benefit before Medicare is deducted. But here's something nobody mentioned - when you file that W-4V, be prepared to WAIT. It took SSA almost 2 months to process mine! And then another month before withholding actually started. If you're trying to fix this for 2025 taxes, submit that form ASAP. Don't wait. The local offices are totally backed up with processing these kinds of administrative requests. If you're having trouble reaching someone at SSA to confirm this was processed correctly, I had great luck using Claimyr (claimyr.com) to get through to an agent. They have a service that calls SSA for you and connects you when an agent is available. Saved me hours of hold time. They have a video demo at https://youtu.be/Z-BRbJw3puU that shows how it works.

There's an important detail I want to add regarding tax withholding from Social Security benefits. The withholding percentage you select (7%, 10%, 12%, or 22%) applies to your gross benefit amount before any deductions, including Medicare premiums. However, there's something else to consider: the taxation of Social Security benefits depends on your "combined income" which is: 1. Your adjusted gross income 2. Plus nontaxable interest 3. Plus half of your Social Security benefits For married filing jointly, if this combined income is between $32,000 and $44,000, up to 50% of benefits may be taxable. Above $44,000, up to 85% may be taxable. With pension income of $72,000 plus Social Security benefits, you'll likely have 85% of your benefits subject to taxation. Make sure your withholding accounts for this reality.

OMG the Social Security tax rules are SO CONFUSING!!! I've been on SS disability for 3 years and I still dont understand it all. My husband works part time and we have to pay taxes on my SSDI even though its supposed to be for DISABILITY! Its not fair!!!!! Does anyone know if you can change your withholding percentage during the year? Or once you pick 10% or whatever are you STUCK with it????

u might wanna check if ur state taxes social security too. some states dont tax it at all (like florida) but others do. that might change how much u need to withhold.

Has anyone here been in a situation where they OVERwithheld from their Social Security? I'm wondering what happens in that case - do you just get it back when you file your taxes?

My sister told me that once you start withholding you can NEVER STOP IT is that true???? I'm worried about starting withholding because what if I need all my money someday and can't stop the withholding????