HomeSocial SecurityReceiving Social Security Disability, how do I get State/Federal Taxes taken out of it.
Receiving Social Security Disability, how do I get State/Federal Taxes taken out of it.
March 18, 2014
Q) I started receiving Social Security Divisibility and I need to find how to get my State and Federal Taxed taken out of it.
A) If you are receiving Social Security Disability Insurance (SSDI), your benefits may be subject to federal taxes, but whether they are subject to state taxes depends on the state where you live. To have taxes taken out of your SSDI payments, you can:
Complete a W-4V form: You can download and print a W-4V form from the IRS website or obtain one from your local Social Security office. On the form, you can choose the percentage of your benefits to withhold for federal taxes, or you can choose to have a flat dollar amount withheld.
Call the Social Security Administration (SSA): You can call the SSA at 1-800-772-1213 and request that federal taxes be withheld from your SSDI payments. The representative will ask you for your Social Security number, your address, and the percentage or dollar amount you would like to have withheld.
It’s important to note that state taxes are not withheld by the SSA, so if you want to have state taxes withheld from your SSDI payments, you will need to contact your state’s tax agency to find out how to do so.
According to Social Security administration you are not required to have federal taxes withheld from your benefits. However, you may find voluntary tax withholding easier than paying quarterly estimated tax payments. To begin federal tax withholding or to change your current withholding amount, follow these steps:
Step 1: Print and complete IRS Form W-4Vto indicate what percentage (7,10,15, or 25) of your monthly benefit amount you want withheld.
Step 2: Sign and return the form to your local Social Security office by mail or in person.
For more information about Form W-4V contact the Internal Revenue Serviceonline or by phone at 1-800-829-1040. You may also obtain the form by calling Social Security at 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. and 7 p.m., Monday through Friday.