Join Early Retirement Today
Reply
 
Thread Tools Display Modes
tax withholdings on SS?
Old 01-30-2022, 06:43 AM   #1
Full time employment: Posting here.
 
Join Date: Sep 2017
Posts: 816
tax withholdings on SS?

Hi,
I am retired now, and am just starting my SS. I submitted my application back in December and my first SS check will be in March! I am doing it at FRO, 66 and 2 months.

Anyway, I was curious about setting up tax withholdings on it. It's not clear to me what to set that to just yet. So, there will be no withholdings to start. My wife is still working fulltime for another 2 years.
My understanding is that up to 85% of my SS income will be taxable by the Feds. We have no state tax on SS income.

So, my thinking is not worry about for now until my wife retires and then our retirement situation will be stable. Until then, I can do quarterly estimated tax payments. Or .. I just set up some automatic withholdings (TBD).

I was just curious what other folks do??
__________________
“Earth is the insane asylum of the universe.”
― Albert Einstein
albireo13 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-30-2022, 06:59 AM   #2
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,607
Quote:
Originally Posted by albireo13 View Post
Hi,
I am retired now, and am just starting my SS. I submitted my application back in December and my first SS check will be in March! I am doing it at FRO, 66 and 2 months.

Anyway, I was curious about setting up tax withholdings on it. It's not clear to me what to set that to just yet. So, there will be no withholdings to start. My wife is still working fulltime for another 2 years.
My understanding is that up to 85% of my SS income will be taxable by the Feds. We have no state tax on SS income.

So, my thinking is not worry about for now until my wife retires and then our retirement situation will be stable. Until then, I can do quarterly estimated tax payments. Or .. I just set up some automatic withholdings (TBD).

I was just curious what other folks do??
I do not withhold from SS check, but i do make quarterly tax payments to cover the Roth Conversions I am currently completing. I would wait to see what the tax consequences are by estimating your taxes with a program like this:


https://www.mortgagecalculator.org/c...calculator.php

VW
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 01-30-2022, 07:43 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 5,638
Quote:
Originally Posted by albireo13 View Post
Hi,

I am retired now, and am just starting my SS. I submitted my application back in December and my first SS check will be in March! I am doing it at FRO, 66 and 2 months.



Anyway, I was curious about setting up tax withholdings on it. It's not clear to me what to set that to just yet. So, there will be no withholdings to start. My wife is still working fulltime for another 2 years.

My understanding is that up to 85% of my SS income will be taxable by the Feds. We have no state tax on SS income.



So, my thinking is not worry about for now until my wife retires and then our retirement situation will be stable. Until then, I can do quarterly estimated tax payments. Or .. I just set up some automatic withholdings (TBD).



I was just curious what other folks do??

I withhold 22% and set it up during my telephone appointment to start my social security. It’s that much less I need to pay in my quarterly estimated taxes.
Dash man is online now   Reply With Quote
Old 01-30-2022, 08:01 AM   #4
Full time employment: Posting here.
Lakedog's Avatar
 
Join Date: May 2007
Posts: 982
I have additional fed tax withheld from my pension to cover the taxes on social security. For me, increasing tax withholding on the pension was easier than having to setup withholding from another source (or making estimated payments). If you already have withholding from a current source of income, might be something to consider.
Lakedog is online now   Reply With Quote
Old 01-30-2022, 08:07 AM   #5
Recycles dryer sheets
 
Join Date: Sep 2021
Posts: 195
You can only withhold max of 22% Fed tax and have to mail a paper form to local office, not as easy as changing DD on SSA website.
xlf11 is offline   Reply With Quote
Old 01-30-2022, 10:09 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2015
Posts: 5,803
We have tax withholding on both pensions and SS.
Set up 20% for SS when we first applied.
__________________
Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
pacergal is offline   Reply With Quote
Old 01-30-2022, 01:26 PM   #7
Thinks s/he gets paid by the post
 
Join Date: May 2007
Posts: 1,577
When doing your taxes for year (2021) you could create another preliminary file for 2022 for what you expect your SS and other income to be. This would give you an idea of what to withhold based on the output of your 2022 taxes.
It may also affect your state taxes depending on how your state taxes SS.
homestead is offline   Reply With Quote
Old 01-30-2022, 02:41 PM   #8
Thinks s/he gets paid by the post
Irishgirlyc58's Avatar
 
Join Date: Sep 2020
Posts: 1,058
I will get my first SS payment on 2/9. I get my first pension payment on 2/1.
Once I get those I will do a tax estimate on my expected income and see if I need to adjust. I also received my last paycheck and a vacation buy out check in January that will factor in.
If I need to adjust I plan on doing that through my pension on line.
I pay state/fed taxes on my pension but only fed on SS.
Pension will be the easiest.
I don’t intend to take anything out of my 457b account this year.
Irishgirlyc58 is offline   Reply With Quote
Old 01-30-2022, 06:15 PM   #9
Thinks s/he gets paid by the post
rk911's Avatar
 
Join Date: Dec 2018
Location: DuPage County IL
Posts: 2,702
Quote:
Originally Posted by albireo13 View Post
Hi,
I am retired now, and am just starting my SS. I submitted my application back in December and my first SS check will be in March! I am doing it at FRO, 66 and 2 months.

Anyway, I was curious about setting up tax withholdings on it. It's not clear to me what to set that to just yet. So, there will be no withholdings to start. My wife is still working fulltime for another 2 years.
My understanding is that up to 85% of my SS income will be taxable by the Feds. We have no state tax on SS income.

So, my thinking is not worry about for now until my wife retires and then our retirement situation will be stable. Until then, I can do quarterly estimated tax payments. Or .. I just set up some automatic withholdings (TBD).

I was just curious what other folks do??
we keep it simple and straightforward by using the IRS safe harbor rule making automatic quarterly estimate payments.
__________________
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
rk911 is offline   Reply With Quote
Old 01-30-2022, 06:54 PM   #10
Thinks s/he gets paid by the post
Out of Steam's Avatar
 
Join Date: Mar 2017
Posts: 1,636
Quote:
Originally Posted by Dash man View Post
I withhold 22% and set it up during my telephone appointment to start my social security. It’s that much less I need to pay in my quarterly estimated taxes.
I'm trying hard to avoid quarterly estimated taxes, but I could easily end up having to do them.
Out of Steam is offline   Reply With Quote
Old 01-30-2022, 07:12 PM   #11
Thinks s/he gets paid by the post
rk911's Avatar
 
Join Date: Dec 2018
Location: DuPage County IL
Posts: 2,702
Quote:
Originally Posted by Out of Steam View Post
I'm trying hard to avoid quarterly estimated taxes, but I could easily end up having to do them.
it does simplify our lives.
__________________
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
rk911 is offline   Reply With Quote
Old 01-30-2022, 09:12 PM   #12
Thinks s/he gets paid by the post
skyking1's Avatar
 
Join Date: Feb 2021
Location: Puget Sound
Posts: 3,223
Quote:
Originally Posted by Lakedog View Post
I have additional fed tax withheld from my pension to cover the taxes on social security. For me, increasing tax withholding on the pension was easier than having to setup withholding from another source (or making estimated payments). If you already have withholding from a current source of income, might be something to consider.
That is what I plan on doing. The pension seems to be user-friendly to make changes on.
__________________
Class of 2023
OMY to 2024
Operating Engineer for a commercial plumbing contractor
skyking1 is offline   Reply With Quote
Old 01-31-2022, 07:32 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 26,821
Quote:
Originally Posted by Out of Steam View Post
I'm trying hard to avoid quarterly estimated taxes, but I could easily end up having to do them.
Remember, any sort of withholding (earnings, pension, SS, RMDs or other IRA/401/403, etc withdraw) is treated as done throughout the year. Much easier than quarterly payments, if you can do it.

-ERD50
ERD50 is offline   Reply With Quote
Old 02-01-2022, 09:45 AM   #14
Recycles dryer sheets
 
Join Date: Mar 2012
Location: Atlanta
Posts: 415
I mailed in the W-4V to have 12% withholding from my Social Security to cover anticipated ROTH conversions during the year. My first check arrived in December 2021 and the deduction was effective in that first payment. I find it easier than dealing with quarterly estimated payments but your mileage may vary as they say.

I can only do so much on conversions before the tax rate gets ridiculous so the 12% works out almost perfectly for me.
5Miler is online now   Reply With Quote
Old 02-01-2022, 09:52 AM   #15
Thinks s/he gets paid by the post
jimbee's Avatar
 
Join Date: Oct 2010
Posts: 1,215
I'm not receiving Social Security yet, but I just withhold the safe harbor amount of income tax each December when I rebalance/Roth convert/etc.
jimbee is offline   Reply With Quote
Old 02-01-2022, 03:35 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,794
Quote:
Originally Posted by Out of Steam View Post
I'm trying hard to avoid quarterly estimated taxes, but I could easily end up having to do them.
We had to do quarterlies for a long time. I always had taxes withheld from my pension, but it wasn't enough. Once I started RMDs, I had extra withheld and it covers virtually all our taxes, meaning no more quarterlies to remember. YMMV
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 02-01-2022, 03:58 PM   #17
Full time employment: Posting here.
 
Join Date: Dec 2006
Location: chicago burbs
Posts: 806
Withholding 7% from SS. Just set up last month.
golfnut is offline   Reply With Quote
Old 02-01-2022, 04:18 PM   #18
Dryer sheet aficionado
 
Join Date: Jul 2016
Posts: 43
We didn't do tax withholding from SS and had a couple of years when we paid a penalty. Since I've started taking RMD that hasn't been an issue
azxracer is offline   Reply With Quote
Old 02-02-2022, 06:32 AM   #19
Full time employment: Posting here.
Venturer's Avatar
 
Join Date: Jul 2019
Location: Dalton
Posts: 744
We both have 10% withheld from our SS as well as our pensions. When we start our RMD we will have to reevaluate the situation but so far we are good and get a little refund after we file.
Venturer is offline   Reply With Quote
Old 02-02-2022, 08:13 AM   #20
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,705
Started getting it last year and set at my marginal tax rate, getting over 3k back from IRS
gayl is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
TSP Tax Withholdings. Lawrencewendall Other topics 5 02-19-2021 09:42 AM
1st Year of FIRE: tax planning and withholdings? BBQ-Nut FIRE and Money 6 12-27-2014 07:44 AM
When are post-tax savings better than pre-tax? RockMiner FIRE and Money 30 03-21-2009 12:56 PM
Vanguard tax-exempt MM at 2.6% pre-tax soupcxan FIRE and Money 17 12-28-2005 09:13 AM
Investment tax cuts in the new tax bill Telly FIRE and Money 1 05-23-2003 01:42 PM

» Quick Links

 
All times are GMT -6. The time now is 02:10 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.