If you find yourself owing money to Uncle Sam every year in April, voluntary tax withholding from your Social Security benefits could be the answer for you. If you receive Social Security Retirement or Disability benefits you can designate a percentage of your benefit amount to be paid to the IRS each month. This amount will be documented on the 1099 form that you receive from Social Security each year and could make your tax liability less of burden to pay.

To designate voluntary tax withholding for your Social Security benefits you need to complete a form W-4V. This form is not available on Social Security’s website for some reason and the only way to get it is to call 1-800-772-1213 and ask for one or visit your local Social Security office.

Once you have the form you will designate the percentage you want withheld, sign on the dotted line and return the form to Social Security. There are only five percentages to choose from: 0%, 7%, 10%, 15% and 25%. You would select 0% only if you would like to stop the withholding. Once you have returned the form it will take 30-60 days for Social Security to process before the withholding starts. (It seems to take Social Security 30-60 days to do just about everything)

---
Related Articles at Social Security Retirement:

• No related posts

As of today Social Security has completed mailing form 1099 to all Disability and Retirement beneficiaries. The amounts on this 1099 have been reported to IRS for tax purposes. Remember, Social Security benefits (with the exception of SSI) are not exempt from Federal income tax. Whether or not you have to pay income tax at the end of the year depends on how much other income you receive and what tax bracket you fall into.

If you did not receive your form 1099 form Social Security or have lost it, today is the first day to call and request a replacement. You do not have to have the paper copy to file your income tax; a Social Security representative can give you the amounts over the phone by calling Social Security’s 800 number.

There are three amounts you will need: the amounts paid to you by check or direct deposit, the amount paid to Medicare for premiums, and the sum of the two amounts. If you had payments returned to Social Security for any reason (for example if your bank account was closed and the direct deposit was returned to Social Security) there will be another important amount on the 1099. This amount shows money returned to Social Security.

When you have money returned to Social Security for a given tax year, the total amount paid to you by check or direct deposit will be over by the amount returned. Social Security has to account for money that was reissued to you; as a result, any money that was returned and reissued will also appear in the total you were paid for the year. For tax purposes you need to make sure and use the amount that was returned to Social Security or you will be off on your total annual income.

To request a replacement 1099 or to get the amounts you were paid for tax year 2005, contact Social Security at 1-800-772-1213.

---
Related Articles at Social Security Retirement:

• Voluntary Tax Withholding


• Are Social Security Benefits Taxable?

Social Security benefits are not exempt from Federal income tax. This is true for both Social Security retirement and disability benefits. SSI benefits however, are not taxable. Whether or not you have to pay income taxes on these benefits depends on your total income for the year. For most people who receive Social Security benefits as their only source of income they will not have to pay federal taxes on this amount. Other income sources you will have to consider include any other pension you may be receiving along with wages you earn from employment.

Generally for tax year 2005, if you are single and under the age of 65, and your income is less than $13,005 you are not required to file personal income tax. If you are over the age of 65 and your income is under $17,435 you are not required to file personal income tax.

If you are married the amounts will vary if you are filing jointly or individually.

Generally, if you are filling together and both of you are under the age of 65, the limit is $26,170. If you are over the age 65 and filing together, the limit is $34,870. There may be other conditions that have to be met in order to be eligible for exempt filing status. To be certain whether or not you have to file your personal income tax based on Social Security benefits and any other income you received, contact the IRS at 1-800-829-1040.

Social Security sends out form 1099 statements throughout the month of January each year. You will need the amounts on this form to determine your filing status and to file taxes each year. If you have not received this document by February 1st contact Social Security at 1-800-772-1213 for a duplicate.

---
Related Articles at Social Security Retirement:

• Social Security Retirement at Age 62


• Social Security Retirement Benefits


• Voluntary Tax Withholding


• How Social Security Works: The Trust Fund


• Social Security 1099 Forms