Setting up Federal income tax withholding on your Social Security benefit is a very straightforward process.
Social Security only withholds federal income taxes, it does not withhold any state income taxes. The good news is that most states do not tax your Social Security benefits.
Here are the steps to take to have federal taxes withheld from your monthly Social Security benefit:
Steps To Have Federal Taxes Withheld From Your Social Security Benefit
- Obtain Form W-4V: This is the form used to request tax withholding from your Social Security benefits. You can download this form directly from the IRS website, or you can request it from the Social Security Administration.
- Fill out the Form: On lines 1,2 & 3, you will need to provide your name, address and Social Security number. You can skip lines 4 & 5 as these lines do not apply to Social Security withholding. On Line 6 is where you can request a specific percentage to be withheld, either 7%, 10%, 12% or 22%.
- Sign & date the Form.
- Submit the Form: Once the form is completed, you can mail it directly to your local Social Security Administration (SSA) office or drop it off in person. The address can be found on the SSA website, by entering your zip code, or by calling their toll-free number, 1-800-772-1213 between 8:00am – 7:00pm local time, Monday through Friday. IMPORTANT: Do not mail it to the IRS.
Should I Withhold My Social Security Benefit? Why or Why Not?
Withholding is a great way to spread out the payment of your income taxes throughout the year on a monthly basis. However, it does not necessarily mean that you won’t owe any addition taxes or get a refund when you file your tax return.
If you are unsure about how much to withhold or whether you even need to withhold federal income taxes on your Social Security income, please reach out our tax professionals for a no cost initial consultation (for new clients). We can help you minimize taxes for the current year and provide a tax plan for future years that is tailor made for your specific needs.