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I would like taxes withheld on my Social Security checks. Which percentage do I choose on the Social Security website?

 
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Vanessa A
Expert Alumni

I would like taxes withheld on my Social Security checks. Which percentage do I choose on the Social Security website?

That depends on the reason you are having them withheld.  If you have other income and you are having taxes withheld from your SS to cover the taxes not being withheld or self employment taxes, then you would need to determine your tax liability for the year and choose the percentage that covers that amount.

 

For instance, if you have self employment net income of $10,000 you would have at least $1,530 in SE Taxes plus your regular income tax.  Say that is another $1,000.  Then with other retirement income and SS you have a total tax liability at the end of the year of $3,600 a month, then you would need $360 a month withheld.  So if your SS is $3,000 a month, you would need to have about 15% withheld in order to be sure you fully covered your tax liability at the end of the year. 

 

If you just want a refund at the end of the year, then you would simply choose the amount that gives you the refund you want at the end of the year. 

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I would like taxes withheld on my Social Security checks. Which percentage do I choose on the Social Security website?

IRS requires you to establish your Required Annual Payment for the year and pay as you go.

You can base your estimate on prior year's tax , or 90% of this year's tax, whichever is smaller.
each period your withholding and estimated tax paid must be at least 25% of the estimate, even if your income is uneven. [Otherwise, you will be penalized.] this is the simplified method, default.
Payments above 25% are carried into the next period.

 

If you can arrange to meet the "Required Annual Payment"
entirely through withholding , the timing does not matter. ES payments are not needed. There will be no penalty.

@brandygirl-ss 

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