Some of you have to pay federal income taxes on your Social Security benefits. This usually only happens if you have other substantial income in addition to your benefits (such as salaries, self-employment, interest, dividends, and other taxable income that must be reported on your tax return). If you prefer to pay more accurate withholding, you can choose to file estimated tax payments instead of having the SSA withhold taxes. You'll only pay taxes on 85 percent of your Social Security benefits, according to Internal Revenue Service (IRS) regulations.
Because you pay taxes on money before contributing it to your Roth IRA, you won't pay any taxes when you withdraw your contributions. If you have to pay taxes on your Social Security benefits, you can make estimated quarterly tax payments to the IRS or choose to have federal taxes withheld from your benefits. You can use this Benefit Statement when completing your federal tax return to find out if your benefits are taxable. Estimated payments are tax payments that you make every quarter on income from which the employer is not required to withhold taxes.
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