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Social Security Affects Income Tax Withholdings

Wed, 10/11/2000 - 12:00am — Karen Stevenson
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An excerpt from Frequently Asked Questions on the Social Security Administration (SSA) Web site:

Q. I got a retroactive benefit. This means I will have an income higher than I expected and may have to pay more income taxes. Will some taxes automatically be withheld from my Social Security benefits?

A. Generally, taxes won't automatically be withheld from your monthly benefits to pay taxes on your higher income. If you think you may have to pay additional taxes this year, you can have additional taxes withheld from your paycheck. Or you can request that taxes be withheld from your Social Security benefit by completing an IRS W-4V and returning it to your local Social Security office by mail or in person.

Q. Now that I'm going to receive monthly Social Security benefits while working, will my benefits be reported to the Internal Revenue Service?

A. Yes. Your Social Security benefits will be reported to the Internal Revenue Service each year. Each January, we will send you a form 1099 that tells you how much in benefits we have reported to the IRS.

An excerpt from Frequently Asked Questions on the Social Security Administration (SSA) Web site:

Q. I got a retroactive benefit. This means I will have an income higher than I expected and may have to pay more income taxes. Will some taxes automatically be withheld from my Social Security benefits?

A. Generally, taxes won't automatically be withheld from your monthly benefits to pay taxes on your higher income. If you think you may have to pay additional taxes this year, you can have additional taxes withheld from your paycheck. Or you can request that taxes be withheld from your Social Security benefit by completing an IRS W-4V and returning it to your local Social Security office by mail or in person.

Q. Now that I'm going to receive monthly Social Security benefits while working, will my benefits be reported to the Internal Revenue Service?

A. Yes. Your Social Security benefits will be reported to the Internal Revenue Service each year. Each January, we will send you a form 1099 that tells you how much in benefits we have reported to the IRS.