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.