I now have to file as single (rather than head of household). I have farmland in another state that is rented (no withholding) in addition to an inherited annuity and a monthly social security payment from my ex-husband. I am still employed full time and just got a raise. I'm already in the 20% bracket and have owed more than $6,000 in taxes last year beyond what I had withheld. So, my questions:
What is the maximum amount I can withhold from my regular paycheck for both federal and state W2s? (I live in Louisiana.) Second, is there a way to get an amount of withholding on my Social Security payment. If so, what percentage should I withhold ?
Hi @jsylves99
Thank you for this question! I will answer the withholding question first. You can withhold as much as you would like from your paycheck. To increase the amount of withholding on your paycheck update line 4(c) Extra Withholding. An amount on this line will increase your withholding by the amount specific per pay period.
Given your scenario, it may be helpful to leverage our withholding calculator. I’ve added a link below to the calculator, which you can use to run hypothetical situations or determine your current withholding needs.
W-4 Calculator - Free IRS W-4 Withholding Calculator 2021-2022 | TurboTax® Official (intuit.com)
For the Social Security withholding, you can increase the withholding by requesting a form from the Social Security Administration and sending it back. They have four percentages to choose from including 7,10,12, and 22 percent of your monthly benefits. I have included a link below to initial the download or call to request a form.
Benefits Planner | Withholding Income Tax From Your Social Security Benefits | SSA
Thank again for asking this question and have a great day!