Social security tax — how to decide withholding
I’ve started collecting my SS and am currently not having taxes taken out. I know you fill out the voluntary tax form if you elect to do so and choose a percentage. I don’t know what percentage I should choose. The range is from 7-20%? How do you decide? What percentage tax do you pay at the end of the year if you don’t have taxes taken out?
Terry Says
I’m going to assume that you’re single, but you can easily search the 2022 tax brackets for joint filers.
You take all income (perhaps still working part time, or dividends, or other income) and add 12x your monthly SS check (which will be a bit higher in 2022) and the total is your gross income. Then look at this chart below and see what top marginal tax bracket you fall into and have them withhold that percentage. That way you can’t go wrong!
The 2022 tax brackets for single filers
10% tax rate for incomes less than $10,275.
12% tax rate for incomes over $10,275 but not over $41,775.
22% tax rate for incomes over $41,775 but not over $89,075.
24% tax rate for incomes over $89,075 but not over $170,050.
32% tax rate for incomes over $170,050 but not over $215,950.
