Form 1099-SSA box 6 Federal Withholding - how is that calculated if the individual has Part A, Part B and Part D prescriptions

[taxesohmy2017]

On Social Security Benefits Form 1099-SSA, individuals have the option to elect to have Federal Withholding be taken out.  My question is how box 6 calculated.  If they have Medicare and prescription do those amounts get subtracted first from the gross, and the Federal Withholding is determined after the deductions are subtracted out or is the Federal Withholding calculated on the entire Gross Amount which includes their benefit, medicare and prescription?

thank you in advance for your assistance.

[VolvoGirl]

I don't have any withholding from my Social Security.  You can tell them how much you want taken out.  W-4V for Social Security withholding

https://www.irs.gov/pub/irs-pdf/fw4v.pdf

It is on the Net Amount in box 5.  Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

[rjs · Accepted solution]

The federal tax withheld from your Social Security benefits is calculated on the gross benefits (SSA-1099 box 3) before subtracting any medicare premiums.

[NCperson]

@taxesohmy2017  if this helps any, "tax" is only calculated on a tax return and no where else.  Look at your 2022 to see what the income is and then what the tax is. 

your withholdings (and estimated payments and refundable credits) are a downpayment against the tax.  Take the tax (line 24 of Form 1040) and apply the withholdings.  If the result is negative, then you are due a refund.  if the result is positive, you owe,  

[taxesohmy2017]

Thank you for your feedback.

I was curious on the SS Benefits the recipients receive each month.  I was more interested to know when the Federal W/H on box 6 on the 1099-SSA is calculated. I wasn't sure if it was calculated on the Gross before deductions (Part A,B and D) were taken out or after.  

[taxesohmy2017]

thank you

[NCperson]

@taxesohmy2017 the federal withholding is not 'calculated' - you tell the SSA what you want withheld.  

BOX 5 is what is reported on your tax return. Box 5 is the income you receive prior to the deduction for Parts A, B, D or the tax withholding. 

[rjs]

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@NCperson wrote:

the federal withholding is not 'calculated' - you tell the SSA what you want withheld.   

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@NCperson  You tell the SSA what percentage you want withheld, not a dollar amount. taxesohmy2017 is asking what amount that percentage is applied to. The amount of withholding is calculated by multiplying the benefit amount by the specified percentage. The question was whether the benefit amount that's used for that calculation is the amount before or after Medicare premiums are deducted.

[taxesohmy2017]

On the W4-V form, for social security voluntary federal W/H you have to choose 7%, 10%, 12% and 22%. From there, that what I wanted to know which amount get the w/h is based off of, the gross before medical premium deduction or after 

[VolvoGirl]

The amount BEFORE medical premiums, usually the net amount in box 5.  Then you can deduct the medical on Schedule A if you itemize deductions.