Question:

I was told that Social Security insurance benefits are not income taxed by the IRS. Is this true?

Answer:

That depends. If your "combined income" which includes some of your SS benefit, exceeds a set threshold, yes, at least some of your SS benefit will be taxed (but not all). If you know you have other income, be it from investments, your work, a spouse's work, and you would like to have the SSA withhold taxes so you don't suffer paying it by April 15, you can request witholdings.

You want IRS form W-4V. When you complete the form, you will need to select the percentage of your monthly benefit amount you want withheld. You can have 7%, 10%, 15% or 25% of your monthly benefit withheld for taxes.

#tax #combinedincome