How to Get Taxes Taken Out of Social Security
Social Security is a crucial component of retirement income for millions of Americans. However, many retirees are surprised to find that taxes are taken out of their Social Security benefits. If you’re looking to have taxes taken out of your Social Security payments, here’s a guide on how to do it.
1. Determine Your Taxable Income
Before you can have taxes taken out of your Social Security benefits, you need to determine if your income is taxable. According to the IRS, up to 85% of your Social Security benefits may be taxable if your combined income (your adjusted gross income plus nontaxable interest plus half of your Social Security benefits) is above a certain threshold. For married couples filing jointly, the threshold is $32,000; for single filers, it’s $25,000.
2. Adjust Your Withholding
If you expect your Social Security benefits to be taxable, you can adjust your withholding to ensure that taxes are taken out throughout the year. To do this, you’ll need to complete Form W-4V, Voluntary Withholding Request. This form allows you to specify the amount of tax you want withheld from your benefits.
3. File Form W-4V
Once you’ve determined the amount of tax you want withheld, complete Form W-4V and send it to the Social Security Administration. You can file this form online, by mail, or in person at your local Social Security office. It’s important to note that changes to your withholding will take effect in the next payment cycle, so plan accordingly.
4. Monitor Your Taxable Income
Keep track of your taxable income throughout the year to ensure that your withholding is accurate. If you find that your withholding is too low or too high, you can adjust it at any time by filing a new Form W-4V.
5. Consider Tax Planning
In addition to adjusting your withholding, you may want to consider tax planning strategies to minimize the amount of tax you owe on your Social Security benefits. This could include contributing to a traditional IRA or a Roth IRA, which may help lower your taxable income.
6. Seek Professional Advice
If you’re unsure about how to get taxes taken out of your Social Security benefits, or if you have questions about tax planning, it’s a good idea to consult with a tax professional. They can help you make informed decisions and ensure that you’re taking the right steps to manage your taxes effectively.
By following these steps, you can ensure that taxes are taken out of your Social Security benefits, helping you avoid surprises and manage your finances more effectively during retirement.
