Social Security withholding
Is the withholding tax deducted after the medicare insurance is taken out of the payment or before? It looks like they are taking out 14% withholding from my social security.
Terry Says
You are taxed on the GROSS amount of your Social Security,notwithstanding how you pay for Medicare Part B. So the amount of withholding is calculated on the original benefit. But if they are taking out too much– and you get a refund every year — then you could lower the percentage. Or if you have other income, you might just set up an appropriate tax withholding schedule on a quarterly basis. Ask your tax preparer for specifics.
