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If you collect Social Security benefits, you might owe the IRS money; here’s what to do

If you plan to collect Social Security next year, it’s a good idea to keep in mind any taxes you might end up owing.

Social Security is income, but it’s taxed differently.

It might be smarter to pay income taxes in installments through the course of a year.

If you do it this way, you may owe much less come next tax season.

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Here’s how taxes on Social Security work, and how to avoid owing the IRS

When you claim taxes, you fill out a form called the W-4P.

This form is for withholding taxes from your benefits.

This form may have been based on your most recent W-4 form from your last employer.

This means you might not be being taxed enough and could owe more money to the IRS.

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To fix this, you could ask for more money to be withheld from your checks.

When you first apply for benefits, ask the Social Security Administration about this.

To change what’s withheld, fill out a W-4V form.

You may also make quarterly tax payments to avoid a large amount all at once at the end of the year.

Quarterly payments are paid on April 15, June 15, Sept. 15, and Jan. 15.

Related: Who can claim a $1,400 stimulus check on their taxes in 2022?

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