Q:

How much is taken out as taxes on social security payments?

A:

Quick Answer

Social Security benefits do not automatically have tax payments withheld at the time of distribution, according to the Social Security Administration. Withholding is voluntary and is done at the request of the recipient.

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How much is taken out as taxes on social security payments?
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Full Answer

The Social Security Administration states that federal tax is withheld by requesting it when applying for benefits. If an individual is already receiving payments, he can fill out a Voluntary Withholding Request, Form W-4V, from the Internal Revenue Service. Specific dollar amounts cannot be requested, but 7, 10, 15 or 25 percent of the payment can be withheld. Social Security benefits are only taxable when a recipient's income rises beyond certain levels, so the decision to withhold depends on the recipient's situation, according to AARP.

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