If you do choose to have federal tax withheld from your Social Security payments, please understand that the amount that's taken out is not the final tax on your benefits. It's just an advance payment towards any tax that you might owe on your tax return at the end of the year, just like tax that's withheld from your pay when you are working. The actual tax on your Social Security benefits, if any, will be calculated on your tax return at the end of the year, and cannot be calculated until your total income for the year is known.
