Tax withholdings on Social Security

[Phantom4]

In our 2002 Joint tax return, when my Social Security was adding in, our return went down about a third.

I know when I turn 65 I will be paying for Medicare. Should I be have withholdings taken out of my Social Security?

[Holly W1]

Hello @Phantom4 

Thank you for joining us today!  

I see your question is about withholding for Social Security.  There are a few more pieces to the puzzle I need to answer your question accurately.  

Is a portion of your Social Security taxable now?  
Are you withholding anything now?  Are you filing married filing joint?

Having to pay for Medicare shouldn't really change how you have your withholding set up for Social Security.  The main importance is how much is being taxed and what is your tax liability at the end of the year.

I look forward to your response!

Cheers, 

Holly W

[conniem123]

Hi Phantom4,

Congratulations on easing into retirement!  Whether or not your Social Security income is taxable depends on your total income, including your Social Security plus any other income. 

When you prepared your 2022 tax return, you would see your refund go down as the taxable portion of your Social Security income was included.  If you look at your tax return you will see your total social security income on your Form 1040 line 6a, and the taxable portion on line 6b.  As your other income goes down, so will your taxable portion of your social security benefits.

You can definitely chose to have federal income tax withheld from your social security beneifts, https://www.ssa.gov/manage-benefits/request-withhold-taxes#:~:text=You%20will%20pay%20federal%20inco..., but not necessary.  It sounds like you still received a tax refund, so you did not need more withheld.

I hope you find this information helpful!

Connie

[Phantom4]

I have military pension and that is not taxed. My wife makes almost 6 figures and when you add in my pension and SS, it goes over the 6 figure. Should we be filling separate returns?

[conniem123 · Accepted solution]

Hi,

While you certainly may file married filing separately, it typically results in a lower refund.  When you file married filing separately you both have to either take the standard deduction or itemized deduction.  If you both take the standard deduction, your spouse would not benefit from the full standard deduction of married filing jointly.

You can prepare mock returns as joint, and then as married filing separately and evaluate the best outcome.  Here is a great resource, https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

I hope this information is helpful!

Connie