Federal income tax withheld changes may be necessary at any time. You could ask for it the moment you claim a benefit from Social Security. In addition, you could also request it if you are already getting an SSA benefit or simply want to modify something. Though, once you are getting your monthly check, you will have to make use of a form.
The Internal Revenue Service has the right form for you to fill out. It is Form W-4V. This is all you need to request it. The main purpose of this form is to make a voluntary tax withholding request. There are several government payments that may need need to apply for this tax withheld. However, Social Security benefits are the ones we are going to focus on today.
When are Federal income taxes paid on SSA benefits?
You will have to pay taxes on them when you have another important income apart from these benefits. Any taxable income will be included here. It could be dividends, a salary, self-employment, and so on. you may be wondering in which cases you have to pay this federal income tax on your benefit. It will be when the combination of your income -if you file as an individual- is between 25,000 dollars and 34,000 dollars.
The amount of income tax you may have to pay on your benefit will be up to 50%. If it were over 34,000 dollars, it could reach 85%. So that amount of your benefits could be taxable. Those filing jointly and their combined income is between $32,000 and $44,000, have to pay the income tax also up to a 50% of their benefits.
What if you file jointly and your combined income exceeds $44,000?
When you file a joint return, and your combined income is over $44,000 up to 85% of your Social Security benefits could be taxable. Those who are married but they opt for filing their tax return separately, may also have to pay taxes on their benefits.
Just as a final reminder for those who may need a voluntary tax withholding request, here are some other possibilities. For instance, those who have unemployment compensation, Commodity Credit Corporation loans, and certain crop disaster payments may also want to use form W-4V.