social Security taxability

[wm54smith]

I understand that up to 85% of social security can be taxable.  My question is, then why is the SSA withholding deduction computed on the gross benefit amount, less the medicare deductions, rather than the gross amount that is actually used for taxability?   

[DoninGA]

It is calculated on the amount shown in box 5 of the SSA-1099

[wm54smith]

I'm thinking it should be the amount in Box 5  - the gross before deductions. (just wanted to confirm)

But, I just received my calculation letter from SSA for 2020, and the tax they are withholding is calculated on the gross, minus the medicare premiums.  ??

[DoninGA]

---

@wm54smith wrote:

I'm thinking it should be the amount in Box 5  - the gross before deductions. (just wanted to confirm)

But, I just received my calculation letter from SSA for 2020, and the tax they are withholding is calculated on the gross, minus the medicare premiums.  ??

---

So you are referring to the amount of federal income taxes being withheld from the SS benefits. 

That is different then the calculation for the taxable amount of SS benefits reported on your tax return.

Up to 85% of Social Security Retirement/Disability/Survivors benefits 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

[wm54smith · Accepted solution]

Yes, My initial message was to confirm the taxability question - which you confirmed, in order to evaluate if the SSA calculation was correct or not.  Wanted to be sure I wasn't missing something.

Appears SSA is withholding based on the wrong calculation,  As an example, I requested 7% be deducted from by benefits for FIT.  They deducted the 7% based on the gross, minus the medicare deductions, which will not get me the appropriate FIT deductions I need.  

Thanks.