When do Social Security benefits get taxed? Federal tax withholding factors explained

The main determining factor is your 'combined income.' Here's how it works: 1. Take your adjusted gross income (excluding Social Security) 2. Add any tax-exempt interest income 3. Add 50% of your Social Security benefits For individual filers: - If combined income is under $25,000: Benefits aren't taxed - $25,000-$34,000: Up to 50% of benefits may be taxable - Over $34,000: Up to 85% of benefits may be taxable For joint filers, the thresholds are $32,000 and $44,000. To have taxes withheld, you need to file Form W-4V (Voluntary Withholding Request) where you can choose to withhold 7%, 10%, 12%, or 22% of your monthly benefit. You can get this form from SSA.gov or by calling.

my sister don't pay no taxes on her ss checks cuz she only gets that and a tiny pension. but me and my husband pay taxes cuz we both still work part-time. its ur other money that makes ss taxable not the ss itself!!

THIS IS SUCH A SCAM!! They already taxed our earnings when we paid INTO Social Security for 40+ YEARS, and now they want to tax the benefits AGAIN?? I have to pay taxes on 85% of my SS benefits because I was responsible and saved for retirement. Meanwhile people who didn't save get all their benefits tax-free. HOW IS THIS FAIR??

For estimating how much to withhold, I recommend using the IRS Tax Withholding Estimator tool on irs.gov. Enter all your income sources (SS, pension, part-time work). Generally, if your total tax bill will be around $3,000 or more, you should have something withheld to avoid underpayment penalties. Keep in mind that Form W-4V only lets you withhold a specific percentage (7%, 10%, 12%, or 22%). You can't specify an exact dollar amount. Most people in the middle income brackets find that 10% withholding works well. Also, you'll need to submit a new Form W-4V if your financial situation changes and you want to adjust the withholding rate or stop withholding entirely.

Has anyone tried reaching SS to ask about this directly? I tried calling for a week straight to ask about changing my withholding and its IMPOSSIBLE to get through. Always 'high call volume' then it hangs up on me!

Just wanted to mention that state taxes are a separate consideration. Most states don't tax Social Security benefits at all (38 states exempt them), but some do. Worth checking your state's rules too!

To answer your question about submitting the W-4V: You can either mail it to your local Social Security office or drop it off in person. I'd recommend calling ahead if you plan to visit in person, as many offices still require appointments. You can find your local office address using the office locator on SSA.gov. If you mail it, I suggest making a copy for your records and possibly sending it with delivery confirmation so you know it arrived safely.

One thing to keep in mind is that the tax withholding percentages on Form W-4V are applied to your gross Social Security benefit, not just the taxable portion. So if you choose 10% withholding on your $2,950 monthly benefit, they'll withhold $295 each month regardless of whether all of your SS is actually taxable. This is important because it means you might end up over-withholding and getting a refund, especially if you're right at the income threshold. The IRS estimator tool mentioned earlier will help you figure out what percentage makes sense for your specific situation. Also, remember that withholding changes typically take effect 1-2 months after SSA processes your W-4V, so plan accordingly if you're trying to adjust for the current tax year.

I went through this exact same situation when I started receiving benefits earlier this year. What really helped me was creating a simple spreadsheet to track all my income sources - SS benefits, pension, part-time work, any investment income, etc. Then I used the combined income formula that @Misterclamation Skyblue mentioned to see where I'd land. In my case, I ended up choosing 7% withholding because my other income sources put me just over the $34,000 threshold but not by a huge amount. The key is being realistic about your total annual income and remembering that you can always make quarterly estimated payments if you find you're still short come tax time. One tip: if you're still working part-time, consider adjusting the withholding on those paychecks too rather than relying solely on SS withholding. Sometimes it's easier to manage that way since you have more control over the exact amounts.