dmertz
Level 15

Retirement tax questions

Social Security income is not compensation needed to support making a retirement contribution.  You can only make a retirement contribution if you have compensation from employment, generally either some amount in box 1 of a W-2 minus any amount in box 11 or net profit from self employment.

 

No, you can't have 100% of your Social Security benefits withheld for taxes.  Tax withholding is calculated on the amount of the benefit payment at a rate of 0%, 7%, 10%, 12% or 22% only.  I would expect this to be on the gross amount before subtracting Medicare payments, but I don't have specific knowledge of that.