Ask Larry

Taxation Of Benefits

Does Social Security Withhold Taxes From Lump Sum Back Payments?

When you receive a DRC lump sum, do they withhold tax like in my monthly benefit?

I received my lump sum, but no detail, just an amount. Thanks!

Hi. Social Security only withholds taxes from benefits when asked to do so by the beneficiary. As far as I know, taxes are only withheld from regular monthly benefits, so I doubt if Social Security would have withheld taxes from your lump sum. However, you should be receiving a notice in the mail explaining the payment you received, and that notice should tell you whether or not taxes were withheld.

Wednesday, April 5, 2023 - 12:22

Are My Tax Calculations Accurate?

Hello sir; my wife retired last year and when doing our taxes, I entered the amount on her SSS-1099. It took us from a plus to owing 1850.00. this despite that doing the math on the back of the form was less than 32,000.
A: 13296. X .50 = B: 6648.00..C: 19981.38 E: 26,629.36. Any help is greatly appreciated. Jim

Hi Jim. I'm sorry, but my expertise is limited to Social Security benefits, not income tax regulations. You'll need to either consult a tax expert or the IRS if you have questions about your income taxes.

Best, Jerry

Tuesday, March 14, 2023 - 13:14

How Would Withdrawing My Claim Affect My Taxes?

I started social security benefits in August 2022, but I want to withdraw them now, March 2023. I'm within the one-year limit. I had other income in 2022, so the tax on the benefits would be high. So I want to give them back. But: if the income is in 2022 and the withdraw and payback is in 2023, Do I need to pay IRS income tax on the benefits with my 2022 taxes and then somehow take it back on my 2023 taxes? That would be difficult: I can't give the IRS 20% or 30% if I have to give 100% back to the SSA.

Monday, March 6, 2023 - 15:56

Will The Back Pay I Just Received Be Taxed For 2021?

I just received retroactive Social Security benefits as of Jan 2023
Will this be taxed for 2021?

Hi. No. Social Security benefits are taxable for the year in which they are paid, not the year for which the benefits were payable. So, any benefits you receive in 2023 would be reported on your 2023 tax return, regardless of what year the benefits were actually due.

Best, Jerry

Tuesday, January 10, 2023 - 14:43

Do I Have To Claim My Survivor Benefits On My Income Tax?

I get survivors benefits from my spouse, do I have to claim that on my income tax if get a retirement in the amount of $20,400 a year?

Hi. You need to claim your Social Security income on your tax returns, but whether or not you are required to pay income taxes on your benefits depends on your adjusted gross income. For more information, refer to the following Social Security webpage:

Best, Jerry

Wednesday, December 14, 2022 - 19:37

Will I Have To Pay Tax On The Social Security Benefits Paid In 2022 If I Repay Them In 2023?

If I withdrawal my social security application in December and they don’t process for 60 days, will I still have to pay tax on the 2022 income received if it’s not paid back till 2023?

Hi. I'm sorry, but I'm not able to answer your question. Although I am an expert regarding Social Security benefits, I have no expertise in income tax regulations.

Best, Jerry

Thursday, November 17, 2022 - 11:05

Is Anything In The Works To Increase The Income Limits That Determine How Much Of A Person's Benefits Are Taxable?

Larry since 1984 the income limits before seniors are taxed up to 85% of their social security income hasn’t changed, how are to survive with having to use are savings to pay taxes! Is there anything in the works to increase these limits?

Friday, September 23, 2022 - 12:46
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