Form W-4V: How to Fill It Out and Where to Send It
Form W-4V is a one-page form. Fill in your name, Social Security number and claim number, tick one rate box, sign, and send it to your local Social Security office — not the IRS. You can also set it up online in your my Social Security account. (IRS: About Form W-4V)
| Rate | On a $2,000 monthly benefit |
|---|---|
| 7% | $140 a month |
| 10% | $200 a month |
| 12% | $240 a month |
| 22% | $440 a month |
No other rates are allowed, and you can't ask for a flat dollar amount.
Withholding on Social Security: Avoid an April Tax Bill
You avoid an underpayment penalty if withholding and estimated payments cover at least 100% of last year's tax (110% if your AGI was over $150,000), or 90% of this year's, or you owe less than $1,000. (IRS Publication 505)
Two other ways to cover the tax:
- Withhold from an IRA or pension on Form W-4R or W-4P — any percentage you like.
- Make quarterly estimated payments in April, June, September and January.
Not sure you owe anything? Check the filing requirement for seniors first.
Our take: W-4V for the bulk, IRA withholding to fine-tune
Four fixed rates rarely land exactly on your tax. Pick the W-4V rate just below what you need and top up with IRA withholding, which you can set to any percentage. See how much of your benefit is taxable on the taxable Social Security calculator and your whole return on the retirement tax calculator.