How to Complete Social Security Form W-4V
Learn how to use Form W-4V to have federal income tax withheld from Social Security benefits, a key tool for managing your annual tax obligation.
Form W-4V, Voluntary Withholding Request, is an Internal Revenue Service (IRS) document that authorizes the Social Security Administration (SSA) to deduct federal income tax from monthly benefits. While Social Security benefits are not always taxable, they can become so when combined with other income, which may create a tax liability at the end of the year.
By choosing to have taxes withheld, beneficiaries can manage this obligation by spreading payments throughout the year. This helps avoid a single large bill when filing an annual tax return and can prevent underpayment penalties. Using Form W-4V is optional and serves as a convenient alternative to making quarterly estimated tax payments.
Information Needed to Complete Form W-4V
Before filling out Form W-4V, you must gather specific personal details. The form requires your full name as it appears on your Social Security records, your current mailing address, and your Social Security number. You will also need your Social Security claim number, which can be found on benefit award letters or other correspondence from the SSA.
The main decision when completing the form is selecting a withholding rate. You must choose from one of four fixed percentages to be withheld from each benefit payment: 7%, 10%, 12%, or 22%. This choice should align with your overall tax situation, considering any other sources of income you may have, such as pensions or part-time work.
The official Form W-4V can be downloaded from the IRS website. To complete the document, enter your name, Social Security number, and address in boxes 1 through 3. Your Social Security claim number is entered in box 4. Box 5, which pertains to unemployment compensation, should be skipped. In box 6, you will check the box corresponding to your chosen withholding rate, then sign and date the form.
How to Submit Form W-4V
Once Form W-4V is accurately completed and signed, it must be sent to the Social Security Administration, not the IRS. The completed form must be delivered to the SSA, which is the payer of the benefits. You can submit the form by mailing it or delivering it in person to your local Social Security Administration office.
To find the correct mailing address for your local SSA office, you can use the office locator tool on the SSA’s official website. After the SSA receives your form, there will be a processing period before the withholding begins, which may take up to several weeks. You can confirm that the withholding has started by checking your benefit statement. It is advisable to keep a copy of the submitted form for your personal records.
Changing or Stopping Your Withholding
Your financial circumstances may change over time, requiring an adjustment to your tax withholding. If you find that the percentage you initially selected is too high or too low, or if you wish to stop the withholding altogether, you must submit a new Form W-4V to the Social Security Administration.
To change your withholding rate, you will complete a new form and check the box in section 6 corresponding to the new percentage. If you decide you no longer want any federal income tax withheld, you will complete a new Form W-4V by filling out your personal information and then checking the box in section 7 to stop withholding.
The submission process for an updated form is identical to the initial submission. The new, completed Form W-4V must be signed, dated, and sent to your local SSA office. The SSA will then process this new request, and the change will take effect after the standard processing time.