Social Security benefit statements, form SSA -1099, are sent out every January to anyone who received Social Security the previous year. This form is used to determine if an individual is subject to taxation of Social Security benefits on the previous year's earnings.
Individuals who have to pay taxes to the IRS have the option of paying quarterly, or having taxes taken out of their monthly Social Security benefits. Normally, only people who have another source of substantial income have to pay taxes on SSI benefits. Furthermore, no one has to pay taxes on more than 85 percent of their Social Security, no matter what other income they may have.