SSA - POMS: GN 05002.016 - Social Security Statement-Box 6, Voluntary Federal Income Tax Withheld (2024)

FAQs

What is the Social Security Voluntary Federal tax withholding? ›

You can pay the IRS directly or withhold taxes from your payment. You may choose to withhold 7%, 10%, 12%, or 22% of your monthly payment.

A. Description of Box 6

Box 6 shows the amount of benefits voluntarily withheld and paid for Federal income tax. The “Description of Box 3”section of the Form SSA-1099 also shows this amount.

To start, change, or stop federal income tax withholding from their Social Security benefits, your clients can sign and submit IRS form W-4V directly to their local Social Security office.

You can have 7, 10, 12 or 22 percent of your monthly benefit withheld for taxes. Only these percentages can be withheld. Flat dollar amounts are not accepted. Sign the form and return it to your local Social Security office by mail or in person.

You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.

If you want to stop withholding, complete a new Form W-4V. After completing lines 1 through 4, check the box on line 7, and sign and date the form; then give the new form to the payer. (For unemployment compensation and certain Federal Government and other payments.)

While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.

You report the taxable portion of your social security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.

If you received Social Security benefits during the year, you should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of your benefits. If Social Security was your only income in that year, your benefits may not be taxable. You also may not need to file a federal income tax return.

IRS Form W-4V (Voluntary Withholding Request)

The beneficiary or his or her representative payee must complete and sign an Internal Revenue Service (IRS) Form W-4V in order to start, stop or change VTW. Send the beneficiary a Form W-4V at his or her request.

Do I have to pay taxes if my only income is Social Security? ›

Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.

Your employer should adjust the excess for you. If the employer doesn't adjust the overcollection, you can use Form 843, Claim for Refund and Request for Abatement to claim a refund. Attach copies of your Forms W-2, Wage and Tax Statement for the year to Form 843.

Substantial income includes wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return. Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable.

You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an “individual” and your “combined income” exceeds $25,000. Joint return, and you and your spouse have “combined income” of more than $32,000.

How to Calculate Your Social Security Income Taxes. If your Social Security income is taxable, the amount you pay will depend on your total combined retirement income. However, you'll never pay taxes on more than 85% of your Social Security income, though the income brackets will vary by filing status.

Employers generally must withhold social security and Medicare taxes from employees' wages and pay the employer share of these taxes. Social security and Medicare taxes have different rates and only the social security tax has a wage base limit.

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

If you work as an employee in the United States, you must pay Social Security and Medicare taxes in most cases. Your payments of these taxes contribute to your coverage under the U.S. Social Security system. Your employer deducts these taxes from each wage payment.