topic W2 Withholding & Social Security Retirement Benefits Withholding in Retirement tax questions

W2 Withholding & Social Security Retirement Benefits Withholding

stu777 — Sat, 14 Dec 2024 17:45:51 GMT

My wife works and has federal tax withheld from her paychecks. I will be receiving Social Security Retirement Benefits. We have already calculated that we will owe Federal tax on my Social Security Retirement Benefits. Social Security only allows me to request a percentage (7%, 10%, 12%, etc.) to be withheld from my Social Security Retirement Benefits. I cannot request Social Security to withhold a specific percentage and then also ask them to withhold an additional dollar amount (e.g. $40 in addition to 7%), like an employer can do on my wife's paycheck. MY QUESTION: If my wife had a set dollar amount deducted from her paycheck each pay period, with the intention of it covering the tax that I will owe on my Social Security Retirement Benefits, would the IRS charge us a penalty for not having this Federal tax deducted directly from my monthly Social Security Retirement Benefits. I keep seeing references to an INDIVIDUAL'S INCOME in all of the IRS literature regarding Federal tax withholding on Social Security Retirement Benefits? I don't know if the individual is required to have the tax deducted from their own income or if we pay enough Federal taxes throughout the year from the extra deduction from my wife's paycheck, if the IRS would not charge us a penalty. We would not owe the IRS anything when we file our joint tax return, if we do what I am proposing.

Re: W2 Withholding & Social Security Retirement Benefits Withholding

DoninGA — Sat, 14 Dec 2024 17:50:22 GMT

Since you will be filing as Married Filing Jointly, what you want to do is a valid plan and the IRS will not impose a penalty for not having federal income taxes withheld from your SS benefits.

Re: W2 Withholding & Social Security Retirement Benefits Withholding

VolvoGirl — Sat, 14 Dec 2024 17:53:07 GMT

Yes your wife can have more withholding taken out to cover the extra tax on your Social Security as long as you are filing Joint return. All the withholding is credited to the whole return. Or why don’t you just have a higher percentage taken out of yours?

Re: W2 Withholding & Social Security Retirement Benefits Withholding

stu777 — Sat, 14 Dec 2024 18:02:19 GMT

Thank you very much. I'm trying to avoid having more taken out of my Social Security Retirement Benefits than what is truly needed. Also, if our tax situation changes in the future, it is much easier for my wife to change her deductions with her employer, then it is to make changes to withholding for my Social Security Retirement Benefits.

Re: W2 Withholding & Social Security Retirement Benefits Withholding

stu777 — Sat, 14 Dec 2024 18:03:23 GMT

Thank you for your very quick response to my question.

Re: W2 Withholding & Social Security Retirement Benefits Withholding

stu777 — Sat, 14 Dec 2024 18:05:02 GMT

Thank you for your very quick response to my question.

Re: W2 Withholding & Social Security Retirement Benefits Withholding

fanfare — Mon, 23 Dec 2024 16:38:55 GMT

Mail IRS Form W4-V to any SS office to change withholding.

It is simpler than the W4 that goes to employers.

@stu777