SS in a High Bracket and Withholdings

[Route246]

I applied for SS at 67 just now due to wife's spousal benefit as she has no individual benefit. It was not really a choice as I had planned to wait until turning 70 but without my wife having any benefit during that time it wouldn't be prudent not to file now.

I believe this will be taxed at marginal something like 10.3 California and 32 Federal rates. Can we request both of these withhold estimated taxes? We're already in a high bracket and expect to remain in a high bracket once I retire and RMD kicks in in a few years.

 

[Dash man]

I believe the highest they’ll withhold is 22%. At least it was when I started three years ago.

 

[xlf11]

I believe the highest they’ll withhold is 22%. At least it was when I started three years ago.

yes and no state tax withholding at all. So it's best to use other means such as estimated tax etc.

 

[MissMolly]

According to Vanguard's posted chart on state taxes, they will withhold for California.


https://personal1.vanguard.com/pdf/sawhtc.pdf

 

[TrvlBug]

CA does not tax SS benefits.

 

[Koolau]

CA does not tax SS benefits.

Nice. Same in Hawaii and quite a few other states as well.

 

[target2019]

Federal withholding choices are on the form.

https://www.ssa.gov/manage-benefits/request-withhold-taxes

7% 10% 12% 22%

 

[Mark1]

CA does not tax SS benefits.

A couple of years ago CO also excluded SS benefits from state tax. However, I recently noted that this only applies to the the SS benefits that are included as part of the taxpayers federal income tax (Line 6b, not 6a).
Maybe someday it will all be included.

 

[statsman]

CA does not tax SS benefits.

That's what I thought, at least when we left the state in 2018.

Federal withholding choices are on the form.

https://www.ssa.gov/manage-benefits/request-withhold-taxes

7% 10% 12% 22%

I also don't see an entry to withhold for state taxes.

 

[target2019]

There is no entry on the SSA-1099 for State tax withholding.

Only nine states tax SS benefits. https://www.kiplinger.com/retirement/social-security/603803/states-that-tax-social-security-benefits

I assume, but cannot prove, that SSA does not want to be involved in collecting taxes for the States.

The next logical step is to go to your State's site, and confirm SS is not taxable. If it is taxable, you would use tools and forms the State provides for withholding.

 

[Koolau]

There is no entry on the SSA-1099 for State tax withholding.

Only nine states tax SS benefits. https://www.kiplinger.com/retirement/social-security/603803/states-that-tax-social-security-benefits

I assume, but cannot prove, that SSA does not want to be involved in collecting taxes for the States.

The next logical step is to go to your State's site, and confirm SS is not taxable. If it is taxable, you would use tools and forms the State provides for withholding.

And quarterlies are such a pain. Too bad if no withholding is possible.

 

[target2019]

And quarterlies are such a pain. Too bad if no withholding is possible.

The great state of NJ has a site where you can schedule quarterly payments. Have not used it, so I'm not sure how well it works.