Tax withholdings on Social Security payments
I will begin collecting Social Security in September when I turn 70. I am a single person. Social Security is asking if I want 7%, 12%, or 22% withheld. Is there an easy way to determine? I don’t have a financial planner. If I have them withhold too much, is it refunded/recouped when I submit my tax return?
Terry Says
Well, it all depends on whether you have other income — from a pension or investments, for example.
Click on this link to see your likely tax bracket based on your total income and filing status.
If you do have significant other income, you’ll want them to withhold 22%. And yes, if you pay in too much, you’ll get a refund. But these days refunds are taking a long time.
