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Social Security Tax Withholding Question
07-28-2022, 11:24 AM
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#1
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Recycles dryer sheets
Join Date: Dec 2005
Posts: 320
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Social Security Tax Withholding Question
I've been retired 5 years, and just started taking Social Security. I figured it would be convenient to have taxes withheld going forward, so I won't have to pay quarterly taxes anymore.
But I think only Federal Taxes are withheld, and not state Taxes.
If I have to pay state taxes quarterly, it may not be worth it..
Does anyone do this, and just pay the state taxes separately?
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07-28-2022, 11:50 AM
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#2
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,356
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Most states don't tax Social Security payments, so it's probably not worth their while to set up a withholding scheme.
__________________
I thought growing old would take longer.
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07-28-2022, 12:09 PM
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#3
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Recycles dryer sheets
Join Date: Sep 2021
Posts: 197
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Even you can for IRS tax, the max of withholding is 22% and has to be done with paper form sending to local SSA office. You cannot do it like changing DD bank on the SSA website.
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07-28-2022, 12:58 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
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I didn't know that was even possible. I do tax returns for 4 different people collecting SS and no FIT withheld for any of them.
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If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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07-28-2022, 01:03 PM
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#5
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,356
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Quote:
Originally Posted by pb4uski
I didn't know that was even possible. I do tax returns for 4 different people collecting SS and no FIT withheld for any of them.
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It's simple to set up when you first start collecting, but cumbersome to change later.
Quote:
You can have 7, 10, 12 or 22 percent of your monthly benefit withheld.
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No other options.
__________________
I thought growing old would take longer.
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07-28-2022, 01:12 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Dec 2017
Posts: 1,619
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I helped MIL set this up after decades of no withholding. I thought we did it in her online account.
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07-28-2022, 01:25 PM
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#7
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Confused about dryer sheets
Join Date: Jan 2021
Posts: 2
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I selected the option to withhold Fed Income tax (10%) on my SSA application. That was ignored and no tax was ever taken out. I have subsequently had to change my State pension withholding three times to achieve what I calculate as necessary.
I first went from Single 2 to Single 1, then from Single 1 to Single 0, and finally went with Single 0 + $60.00 additional monthly.
My State Pension still uses the old method of Marital Status and exemptions for now.
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07-28-2022, 01:33 PM
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#8
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,356
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State tax withholding can be tricky.
My military pension makes it easy to change withholding online for federal, but I can't withhold at all for state. The reason is that a state has to set up a formal agreement with the military to handle this, and my state has not done so. My guess is that this is part of the reason Social Security won't do it -- they don't want to open a can of worms where they will withhold from some states but not others.
__________________
I thought growing old would take longer.
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07-28-2022, 01:47 PM
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#9
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Recycles dryer sheets
Join Date: Dec 2005
Posts: 320
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Quote:
Originally Posted by braumeister
It's simple to set up when you first start collecting, but cumbersome to change later.
No other options.
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I was able to download and print the form from social security, which has to be mailed in (No uploading or online changes allowed)
You can use the same form to stop withholding
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07-28-2022, 01:53 PM
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#10
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,356
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Quote:
Originally Posted by Livefree
I was able to download and print the form from social security, which has to be mailed in (No uploading or online changes allowed)
You can use the same form to stop withholding
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When you see the withholding take effect, please let us know how long it took for them to process it.
__________________
I thought growing old would take longer.
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07-28-2022, 01:56 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,139
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I do my Federal withholding through my pension. It's a state pension, but they won't withhold for state! Since my state taxes are low, I just pay it in a lump in March using their on-line site.
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And whatever your labors and aspirations in the noisy confusion of life, keep peace in your soul. With all its sham, drudgery, and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy.- Desiderata by Max Ehrmann
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07-28-2022, 02:01 PM
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#12
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Recycles dryer sheets
Join Date: Dec 2005
Posts: 320
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Quote:
Originally Posted by braumeister
When you see the withholding take effect, please let us know how long it took for them to process it.
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The rep I spoke with yesterday, said if I mailed it this week, the change should take place for next months payment.
My payment is the 4th Wednesday of every month...we'll see..
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07-28-2022, 02:07 PM
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#13
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,340
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I opted to have 10% taken out when I started SS and that seems to work out very closely for us. My former employer in MD will withhold taxes on the pension for MD but I didn't really expect them to do all the weird calculations for all the other states that have income taxes, and they won't. So since I have to send in quarterly payments for the pension anyway it is little additional bother to include SS with it too.
Fortunately WV's governor is working on eliminating the WV income tax altogether, perhaps even starting with a 10% cut this year. It'll probably happen about the same time we move out of WV for a CCRC in PA.
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When I was a kid I wanted to be older. This is not what I expected.
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07-28-2022, 03:49 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 3,681
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I started SS withholding earlier this year. I mailed in the form and it did not happen in the first month after submitting, but it did in the second month.
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Married, both 69. DH retired June, 2010. I have a pleasant little part time job.
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07-28-2022, 04:23 PM
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#15
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Recycles dryer sheets
Join Date: Mar 2012
Location: Atlanta
Posts: 426
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I started SS last November with first payment in December. I must have blown past the withholding part when I applied so had to send in the form after I was approved near the first of November. My first check in December had the proper 12% withheld as requested so it didn't take too long. My payment is 2nd Wednesday each month.
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07-28-2022, 06:23 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Dec 2018
Location: DuPage County IL
Posts: 2,727
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Quote:
Originally Posted by braumeister
It's simple to set up when you first start collecting, but cumbersome to change later.
No other options.
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set up quarterly payments on EFTPS. takes me maybe 15-min once a year.
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Rich
Ham Radio, Sport Pilot, RVer
FIRE: 8/11/2005, age 55y,1d
Dispatcher, then shift supv, then administrator for a regional 9-1-1 call center
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07-30-2022, 08:09 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: Reading, MA
Posts: 1,798
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I have max Federal tax withheld from my SS payment.
SS isn't taxed in MA, so that's a non issue.
But since SS withholding isn't finely adjustable, I tweak the withholding on other income streams, in 1% increments, to get overall amount where I want it for the year...
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07-30-2022, 09:22 AM
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#18
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Confused about dryer sheets
Join Date: Oct 2016
Posts: 6
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I withhold taxes from SS. I have state taxes. I don't have to worry about state taxes (yet), because my income isn't high enough to have to prepay state income taxes. (this may change after I start RMDs from my IRA) I love withholding the taxes from SS because I don't have to worry about being penalized for not prepaying federal income taxes. I withhold 12% at this time, which is enough for my income level. I'll increase that when my income increases from RMDs (if 22% is enough). This is convenient for me, so I recommend it. It may not be satisfactory for everyone.
The one drawback to this is that it takes a couple of months for the SS Administration to start the withholding OR to effect any change. So plan for that.
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07-30-2022, 09:36 AM
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#19
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,076
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Quote:
Originally Posted by rk911
set up quarterly payments on EFTPS. takes me maybe 15-min once a year.
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+1 for EFTPS. I would rather manage my withholding.
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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07-30-2022, 10:36 AM
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#20
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Thinks s/he gets paid by the post
Join Date: May 2011
Location: South Eastern USA
Posts: 1,068
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Quote:
Originally Posted by Souschef
+1 for EFTPS. I would rather manage my withholding.
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I never had SS withhold. I did it through my pension. Then pension admin became incompetent (or I did ) so now I just do monthly EFPTS.
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