Social Security withholding taxes - Medicare shown but not income tax on my benefits notice
Just received my Social Security benefit confirmation letter yesterday and I'm confused about the tax situation. I can see they're taking out the Medicare premium ($186.40), but there's absolutely no mention of income tax withholding. I thought they automatically deducted taxes? I've got a decent pension plus these SS benefits, so I know I'll owe taxes come April. Do I need to set up tax withholding separately or is this normal? If I need to arrange withholding, what's the process? Don't want to get hit with a surprise tax bill or penalties for underpayment. Thanks for any advice!
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Alina Rosenthal
they dont take taxes automatically u have to ask them to do it
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Mohammad Khaled
•Thanks for the quick reply. Do you know how I request that? Is there a form or do I need to call them?
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Finnegan Gunn
You need to complete Form W-4V (Voluntary Withholding Request) to have federal taxes withheld from your Social Security benefits. You can choose to have 7%, 10%, 12%, or 22% withheld. The form is available on the SSA website, or you can call and request one be mailed to you. After completing it, you'll need to mail or take it to your local Social Security office - this can't be done online unfortunately. Many retirees don't realize this isn't automatic and end up with tax bills. About 40% of beneficiaries end up owing taxes on their benefits, depending on your combined income (which includes half of your SS benefits plus other income).
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Mohammad Khaled
•Perfect information, thank you! I'll download the W-4V today. Do you know how long it typically takes for the withholding to start once they receive the form?
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Miguel Harvey
I went through this exact situation last year! The W-4V form is pretty straightforward, but it took about 6-8 weeks for the withholding to actually start showing up on my payments. I'd recommend calculating roughly what percentage makes sense for your situation - I initially selected 7% but had to increase it to 10% after doing some math with my tax preparer. One thing to consider: if you're already receiving payments and it's partway through the year, you might want to withhold at a higher rate for the remaining months to cover what wasn't withheld earlier.
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Ashley Simian
•I did this too but ended up STILL owing money at tax time!!! They don't make this easy for seniors. The SSA website is so confusing and trying to calculate the right amount is nearly impossible!!
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Oliver Cheng
My sister just had this same issue! She ended up calling Social Security directly to get the form and ask questions. Took her THREE DAYS of calling to get through to someone!!!
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Taylor To
•I had the same problem trying to reach someone at SSA about tax withholding - literally spent hours on hold only to get disconnected. I finally tried Claimyr (claimyr.com) and got through to an agent in about 20 minutes. They basically wait on hold for you then call you when an agent picks up. Saved me so much frustration! They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU - definitely worth it for anyone dealing with these withholding questions that really need a human to answer.
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Ella Cofer
Nobody mentioned that you can also make quarterly estimated tax payments to the IRS instead of having SSA withhold taxes. Some people prefer this method if they have complicated tax situations or multiple income sources. Just use Form 1040-ES. That's what I do since I have rental income along with SS.
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Mohammad Khaled
•That's a good point! I might look into that option too. I do have some investment income besides my pension and SS benefits. Would need to figure out which approach is easier to manage.
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Ashley Simian
This tax withholding thing REALLY confused me when I started getting benefits!!! I thought everything was taken care of automatically too and then BOOM got hit with a $3200 tax bill my first year on SS!!! Make sure you fill out that W-4V asap because the processing time can be WEEKS or even MONTHS depending on your local office!!!! The whole system is SO FRUSTRATING!!!!!
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Alina Rosenthal
•same thing happened to my uncle he had to set up a payment plan with the irs
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Finnegan Gunn
One additional tip: If you're married and file jointly, remember that you each need to submit a separate W-4V form for your individual benefits. Also, keep in mind that generally only about 50-85% of your Social Security benefits are taxable, depending on your combined income. This is calculated using your adjusted gross income plus nontaxable interest plus half of your Social Security benefits. If this total exceeds certain thresholds ($25,000 for single filers or $32,000 for joint filers), then a portion of your benefits becomes taxable.
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Oliver Cheng
•Wait so if my husband and I make less than $32,000 combined we don't pay taxes on SS at all? I've been withholding for nothing??
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Miguel Harvey
Just to follow up on my earlier comment - once your withholding starts, check your MySocialSecurity account online to verify the correct percentage is being withheld. When I submitted my W-4V, they somehow entered 12% instead of the 10% I requested. It took another form submission to correct it. The online account shows your payment details including all deductions.
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Mohammad Khaled
•That's really helpful - I'll definitely monitor my account once I submit the form. Sounds like I need to be proactive about checking that everything processes correctly. Thanks for all the advice everyone!
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