Do you need to change the amount of Federal tax withheld from your Social Security payments?
That requires 2 steps:
Fill in IRS Form W-4V and print it. (note: form W4 is what you give an employeer. Form W-4V is what you use for a government payment such as Social Security or Unemployment.) Form W-4V. Your tax counselor can offer guidance on the % to withhold
Mail that form it into your local Social Security Office. You can also Fax it. There is currently no method for making these changes online. Find the correct Social Security office by using the on-line Locator based on your home zip code. If the Locator link is not working, use the Social Security office associated with the county where you live.
Brazoria County: 2921 N Valderas St. Angelton, TX 77515. phone: 1-866-338-2940 Fax: 1-833-902-2570
Galveston County: 2835 Gulf Freeway South. League City, TX 77573 phone: 1-866-299-3254 Fax: 1-833-902-2584
Harris County: 3300 Watters Road. Pasadena, TX 77504 phone: 1-800-772-1213 Fax: 1-833-950-2414
I am Receiving Social Security and I also have a job. What does that do to my SOcial security Payment?
Full Retirement Age (FRA), for social security payments, depends on year you were born.
Born before 1938 your FRA is 65.
Born after 1960 your FRA is 67.
Born between 1938 - 1960, FRA increased by 2 months/year from 65 to 67
If you are under FRA and your earnings were greater than $19,560, then your Social Security payment will be reduced $1 per every $2 of earnings above $19,560 (that number is $21,240 for 2023).
On the year you reach FRA, and the months prior to reaching FRA, then you can earn up to $51,960 before your Social Security payment is reduced by $1 for every $3 of earnings above $51,960 (that number is $56,520 for 2023)
Once you reach FRA, your Social Security payment will not be affected based on any additional earnings.
How much of my Social Security Payment is taxable?
The final calculation for the amount of your social seurity payment which is taxable is rather complicated and calculated within the TaxSlayer software. For a rough estimate, do the following:
SS Adjusted Income = (All Income, excluding any social security payment )+ 1/2 Social Security payments
If you're single or Head of Household, and
SS Adjusted Income < $25,000, then none of your Social Security Income is taxable (line 6b is zero)
SS Adjusted Income > $34,000, then up to 85% of your Social Security Income is taxable (line 6b will be up to 85% of line 6a)
If you're Married Filling Jointly and
SS Adjusted Income < $32,000, then none of your Social Security Income is taxable (line 6b is zero)
SS Adjusted Income > $44,000, then up to 85% of your Social Security Income is taxable (line 6b will be upto 85% of line 6a)
Other Social security facts for 2022
Social Security payments for 2022 increased 5.9% vs 2021
Social Security payments for 2023 increased 8.7% vs 2022
Employees pay withholdings of 7.65% total (6.2% for Social Security and 1.45% for Medicare)
Self-employeed pay withholdings of 15.3% (they pay both the employeer and employee portion of Social Security and Medicare)
Social Security will no longer be withheld from earnings once your earn over $147,000 (160,200 for 2023). Medicare will always be taxed regardless of earnings.
The maximum social security benefit possible is $3,345/month ($3,627 for 2023)