DQOTD: Social Security “Pay Stub?”

[Midpack]

I’ll be filing for SS benefits in a few months, I understand it’s direct deposit into our checking account. I understand Medicare B & D premiums will be paid from my SS payment, and I plan to withhold the maximum amount for Fed taxes as well (22% of net after Medicare it appears). I understand I’ll get an SSA-1099 each year in Jan thereafter, but will I be able to see what’s withheld from each payment for tax planning in real time - online or anywhere? I asked some friends who are already taking Soc Sec - they didn’t know or care…

 

[TheWizard]

Your annual statement will tell you that.
It comes the end of each year and tells you what's happening to your Gross amount each month the following year, including IRMAA, if applicable.

If you misplace your statement, log into My SS and print a new one. All twelve months are generally identical...

 

[Sunset]

Good question.

I would hope at least you are told the gross SS you will be getting , then could subtract medicare premiums, and see what goes in the bank. The difference would be the withholding.

Probably accurate within a few dollars per year.

 

[Time2]

I question the part D. Is there some government paid part D? I have a supplemental for my drugs, under plan D. I don't recall my statements showing such.

 

[MichaelB]

I’ll be filing for SS benefits in a few months, I understand it’s direct deposit into our checking account. I understand Medicare B & D premiums will be paid from my SS payment, and I plan to withhold the maximum amount for Fed taxes as well (22% of net after Medicare it appears). I understand I’ll get an SSA-1099 each year in Jan thereafter, but will I be able to see what’s withheld from each payment for tax planning in real time - online or anywhere? I asked some friends who are already taking Soc Sec - they didn’t know or care…

I get a yearly letter detailing the gross monthly pension to be paid for the following year, the deductions for Medicare, and the net amount to be deposited. No other communications.

 

[MichaelB]

I question the part D. Is there some government paid part D? I have a supplemental for my drugs, under plan D. I don't recall my statements showing such.

IRMAA for Part D wil be withheld from the SS monthly pension. The monthly premium for the Plan D policy can be paid directly to the insurer or can be withheld from the SS monthly pension.

 

[Sue J]

will I be able to see what’s withheld from each payment for tax planning in real time[/B] - online or anywhere? I asked some friends who are already taking Soc Sec - they didn’t know or care…

Yes, in your SSA.gov account your last payment is shown and you can see the deductions.

Mine says Medicare Premiums which for me is just Part B but for you may be the total of B and D. On mine there's a line for Other Deductions which is my Federal Withholding.

 

[audreyh1]

We just plan to use the 1099-SS provided in Jan, otherwise use our own numbers. The letter from Medicare issued in November details the Medicare Part B plus Part D IRMAA that will be withheld each month for the following year.

I don’t think we’ll do Federal tax withholding from SS.

 

[Gumby]

...

I don’t think we’ll do Federal tax withholding from SS.

I don't. I just adjust my pension withholding or do an all-tax tIRA distribution to get the tax paid correct for the year.

 

[Midpack]

Yes, in your SSA.gov account your last payment is shown and you can see the deductions.

Mine says Medicare Premiums which for me is just Part B but for you may be the total of B and D. On mine there's a line for Other Deductions which is my Federal Withholding.

Excellent, that’s what I was hoping. I don’t want to wait until I get the SSA-1099 the Jan following each year - might as well factor in withholding with quarterly estimated tax payments as I go. I am assuming they’ll deduct Medicare Part B&D including IRMAA penalties (for a couple more years) and Fed withholding after I send in my W-4V. It will be surreal having income after 13 years without…