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Kayakers Take on Swollen River After Geelong Lashed With Heavy RainfallKayakers took on the high waters of Buckley Falls in the Barwon River in Geelong, Victoria, on Sunday, October 16, after heavy rain led to flooding in the area in previous days.Local media reported heavy rain from Wednesday led to river levels rising and flooding in the area. Some roads and facilities were closed by authorities in response.The City of Greater Geelong warned residents on Sunday that they would see “significant debris, as well as damage to roads, such as potholes” as floodwaters recede. Around 7,000 sandbags had been distributed in advance of more rain forecast later in the week.Footage by Amanda Stewart shows people kayaking in fast-flowing water. Stewart said the video was captured at Buckley Falls in Geelong on Sunday.Buckley Falls is a rock cascade in the Barwon River. Local media reported its water level was beginning to fall on Sunday. Authorities told locals that day to avoid river water. Credit: Amanda Stewart via Storyful  Inside Creative House / iStock.com When you apply for Social Security benefits, you can request to have federal income taxes withheld from your payments. However, if you’re already receiving benefits or want to make changes, the Social Security Administration advises filling out Form W-4V from the Internal Revenue Service. Explore: Your Biggest Money Etiquette Questions Answered Federal income taxes are typically paid on Social Security benefits if you have other substantial income in addition to your benefits, such as wages, self-employment, interest, dividends and other taxable income. You may have to pay federal income taxes on your Social Security benefits if you:
You can find and download Form W-4V on IRS.gov or call the IRS toll-free number at 1-800-829-3676 and ask for Form W-4V, Voluntary Withholding Request. If you’re deaf or hard of hearing, you can call 1-800-829-4059. If you don’t have your federal income tax withheld from your benefits, you’ll be required to make quarterly estimated tax payments You’ll also need to select the percentage of your monthly benefit amount you want to be withheld. The SSA states that you can have 7, 10, 12 or 22 percent of your monthly benefit withheld for federal income taxes. Flat dollar amounts are not accepted. Once the form is completed, return it to your local Social Security office by mail or in person. If you want to make any changes in the future, you’ll need to fill out a new Form W-4V. More From GOBankingRates
Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide. Learn More You've finally retired. You've reached the age when you can begin collecting Social Security. Life is easy. Or is it? When tax time rolls around, an obvious question arises—do you have to pay income tax on Social Security benefits? The answer isn't a simple yes or no. Your tax liability depends on other details about your situation. Social Security benefits might be either non-taxable or partially taxable. Keep reading to learn the factors that determine whether or not you'll owe taxes on your Social Security benefits. Key Takeaways
If Social Security Is Your Only IncomeYou almost certainly won't have to pay income tax on your Social Security benefits if they are your only source of income. That means your Social Security income probably isn't taxable if you never got around to investing in a 401(k), if you don't rent out a property for profit, or if you've given up working entirely. These are just examples—the point is that you have no other form of income from any source. In some cases, this might mean you don't even have to file a tax return. You should always check with a tax professional, though, before you skip filing altogether. If You Have Other IncomeA portion of your benefits may be taxable if you have other sources of income in addition to your Social Security benefits. The taxable portion will be either 50% or 85% of your benefits. Which it is depends on the rest of your income. NoteYou can use the Social Security Benefits Worksheet in the Instructions for Form 1040 to calculate your taxable amount based on your own personal circumstances. To figure out your tax liability, you must first calculate your "combined income" and then compare it to the base amounts in the chart below. Your combined income is your total income from all other sources, including tax-exempt interest, plus half your Social Security benefits. These base amounts are used in figuring the taxable portion of your Social Security benefits. When a person's income crosses the base amount threshold, but not the additional amount, then they will pay taxes on 50% of their Social Security income.
An ExampleLet's say that you collect $15,000 a year in investment income. You continue to work one day a week, and you earned $7,000 doing so over the course of the tax year. You collected $18,000 a year in Social Security retirement benefits. Half of that comes out to $9,000. Your combined income is, therefore, $31,000 ($15,000 investment income + $7,000 wages + $9,000 Social Security benefits). If you're single, that means you'll owe taxes because $31,000 crosses the single-filer threshold of $25,000. If you're married and filing a joint tax return, and your spouse hasn't earned any additional income (which means that your $18,000 Social Security income includes theirs, as well), then you would not owe taxes because the threshold for married couples is $32,000. NoteCrossing the base amount threshold doesn't mean you'll be taxed at a rate of 50%. It means that you'll have to report and pay income tax on 50% of your Social Security income. Your tax rate will be determined by your income tax bracket. You can potentially make some adjustments to your income to avoid crossing that threshold. For example, you might want to give up that one-day-a-week job if it looks like your investment income and half your benefits are going to nudge you up against that provisional income threshold. Talk to a tax professional to understand your potential tax liability if you have multiple sources of retirement income. They can help you find out how much of your earned income is actually going into your pocket after accounting for all taxes, not just taxation of your Social Security benefits. Additional Amount ThresholdsAs you may have noticed in the chart above, there's another column that lists the "additional amount." The additional amount marks the point at which the higher tax liability kicks in. The example scenario of $31,000 combined income crosses the base amount threshold for a single filer. But it doesn't cross the additional amount threshold of $34,000. That means, in this example, you'll only pay taxes on 50% of your Social Security income. If your combined income were to cross that additional amount threshold of $34,000, you would have to pay taxes on 85% of your Social Security income. Rules for Married CouplesThe income thresholds for married couples filing together are $32,000 for the base amount and $44,000 for an additional amount. For married couples who file separate tax returns, it all depends on whether they spent any part of the year living together. If you lived in the same household as your spouse at any time during the tax year, this reduces your base amount to zero. You'll almost certainly pay taxes on some portion of your Social Security benefits. Married couples who lived apart from each other throughout the entire year can use the same base amount as single filers, $25,000. In either case, whether you're married or single, the taxable portion of your Social Security benefits cannot exceed 85% of your total benefits. Withholding on Social Security BenefitsYou can elect to have federal income tax withheld from your Social Security benefits if you think you'll end up owing taxes on some portion of them. Federal income tax can be withheld at a rate of 7%, 10%, 12%, or 22% as of the tax year 2021. You're limited to these exact percentages—you can't opt for another percentage or a flat dollar amount. If you'd like the government to withhold taxes from your Social Security income, file Form W-4V, the Social Security Withholding Tax Form. This will let the Social Security Administration know exactly how much tax you would like to have withheld. State Taxes on Social SecurityJust over half of states, in addition to Washington D.C., either do not collect income tax or do not factor Social Security income into those tax considerations. The remaining states may tax Social Security income, but they don't all handle taxes the same way. Some of these states will tax up to the same 85% of benefits as the federal government. Others tax Social Security benefits to some extent but offer breaks based on your age and income level. Consider touching base with a tax professional to determine what, if any, tax breaks you might qualify for locally. Should I have taxes withheld from my Social Security check?You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an “individual” and your “combined income” exceeds $25,000. Joint return, and you and your spouse have “combined income” of more than $32,000.
How much federal tax Should I withhold from my Social Security check?You can have 7, 10, 12 or 22 percent of your monthly benefit withheld for taxes. Only these percentages can be withheld. Flat dollar amounts are not accepted. Sign the form and return it to your local Social Security office by mail or in person.
Is federal income tax withheld from Social Security?SSA will not withhold tax from your benefits if you are a U.S. person. If you find that you do have to pay taxes on your Social Security benefits, you can make quarterly estimated tax payments to the IRS or choose to have federal taxes withheld from your benefits.
Can I change my withholding on Social Security Online?Go to my.calpers.ca.gov and log into your myCalPERS account, then follow these steps: 1 Select Tax Withholding from the Retirement dropdown options. 2 Select Change your Federal Withholding, or Change your State Withholding. 4 Review the impact of changes then click Continue.
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Withholding income tax from social security benefits
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