Social security tax

[Jbob5]

How does Social Security tax withheld not get subjected to federal income tax if it is not reported anywhere on income tax return. 

[VolvoGirl]

Not understanding.   You enter the SSA-1099 for Social Security.   The federal withholding in box 6 shows up on 1040 line 25b with other 1099 withholding.  Your Social Security might not be taxable.

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]

Social Security tax withheld from your pay, and shown in box 4 of your W-2, IS subject to federal income tax. You pay income tax on your gross pay (W-2 box 1), without subtracting Social Security tax (box 4) or Medicare tax (box 6). That's the way the tax rules work.

[Opus 17]

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@rjs wrote:

Social Security tax withheld from your pay, and shown in box 4 of your W-2, IS subject to federal income tax. You pay income tax on your gross pay (W-2 box 1), without subtracting Social Security tax (box 4) or Medicare tax (box 6). That's the way the tax rules work.

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Well, your social security tax is based on your box 3 income.  Box 1 and box 3 income may be different in some cases, such as when you contribute to a 401k.

However, there are no tax deductions for paying social security tax, it is not a deductible tax like state income tax, sales tax, or real property tax. 

[Jbob5]

Ok. That’s what I thought. Then 40 or 50 years later when the worker retires and starts drawing Social Security benefits and receives a 1099, at least part of that is taxed again, based on other income. Correct? 

[xmasbaby0]

@Jbob5 Under the current tax laws, if you are receiving Social Security benefits AND have other taxable income, up to 85% of your Social Security can be taxable.   If your ONLY income is Social Security, you do not need to file a tax return.   We cannot predict what the tax laws will be even a year from now---and certainly cannot tell you what they will be in 40 or 50 years.