As we head toward 2018, now may be a good time to think about voluntary tax withholding and your Social Security benefits.
Since some of your Social Security benefits might be taxed, (visit this link for more information about taxation of benefits: www.ssa.gov/planners/taxes.html) you may want to do some voluntary tax withholding from your Social Security benefit. Taxes are not routinely withheld from the benefits we pay you.
If you want to do some withholding, you can choose the percentage you would like to withhold: 7%, 10%, 15% or 25%. You cannot withhold by a dollar amount. Your withholding must be chosen from the available percentages shown above.
Social Security does not have the authority to withhold any state or local taxes, only federal income tax at the rates above.
To make the voluntary tax withholding selection, you need to complete form W-4V available at our website (www.ssa.gov/planners/taxwithold.html) or from IRS (www.irs.gov/pub/irs-pdf/fw4v.pdf). You would use the same form to either begin voluntary tax withholding or to change to a different rate of voluntary tax withholding. Return the form to your local Social Security office by mail or in person. (You can use our office locator to find the address for mailing your form: https://secure.ssa.gov/ICON/main.jsp.)
Social Security employees do not give tax advice, but for more information about tax withholding, you can read the IRS publication 554 Tax Guide for Seniors and publication 915 Social Security and Equivalent Railroad Retirement Benefits at https://www.irs.gov/pub/irs-pdf/p554.pdf and www.irs.gov/pub/irs-pdf/p915.pdf.
For tax advice and more assistance, please call IRS at 1-800-829-3676.