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I own taxes because I failed to check Box 6 (Voluntary Withholding) on form SAA-1099. I won't let this happen next year, but is there anything I can do now?

Forum|Forum|2 years ago
March 29, 2024
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Best answer by xmasbaby0

@aww91 I gave you the link to have tax withheld from your SS. If your ONLY income is SS, you do not even have to file a tax return. If you have SS in combination with other income such as continuing to work, receiving other retirement income like a pension or distributions from an IRA or 401k, investment income, etc. etc.---that is when you may want to withhold tax from your SS----or just increase the amount of tax you are having withheld from those other sources of income.

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xmasbaby0

Employee

No. If you did not have tax withheld from your SS for 2023, you cannot go back in time to change that now. You can choose to have tax withheld from your SS going forward if you want to.

Up to 85% of your Social Security benefits can be taxable on your federal tax return. There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits. When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.

What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2019 it was $17,640— for 2020 it was $18,240; for 2021 it was $18,960. For 2022 it was $19,560 — for 2023 $21,240) For 2024, $22,320.

After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare. If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2023 Form 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Some additional information: There are 11 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

The tax laws for 2024 will change——for tax year 2024 Missouri and Nebraska will no longer tax SS

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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aww91Author

Thanks. I was afraid that was going to be my answer. Maybe you can help clarify something else. Going forward, to withhold taxes from my benefits I have to send form (W-4V) to SSA estimating the amount to withhold. Is it just me, or is this cumbersome* process causing other newly SS recipients heartburn? 😣

* Why not default to automatically withhold taxes

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xmasbaby0Answer

Employee

@aww91 I gave you the link to have tax withheld from your SS. If your ONLY income is SS, you do not even have to file a tax return. If you have SS in combination with other income such as continuing to work, receiving other retirement income like a pension or distributions from an IRA or 401k, investment income, etc. etc.---that is when you may want to withhold tax from your SS----or just increase the amount of tax you are having withheld from those other sources of income.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

X

xmasbaby0

Employee

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**