Title II beneficiaries may request SSA to withhold a percentage of their monthly payment amount (MPA) each month to help meet their Federal income tax liability for the current tax year. The MPA is the amount received after all deductions, withholding, or benefit offset(s).

A request for VTW applies to both current month (CMA) and prior month accrual (PMA) payments of title II benefits.

NOTE: Direct all questions regarding tax liability to the Internal Revenue Service.

All Title II beneficiaries may request VTW. Only the beneficiary or his or her representative payee can make the request for VTW. All requests for VTW must include the beneficiary's own social security number (BOAN).

NOTE: The following are not subject to VTW:

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  Title XVI payments,

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  Black Lung payments,

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  Lump Sum Death Payments,

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  returned check reissuances, or

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  benefits due before January 1984.

Beneficiaries certified by the Railroad Board (RRB) can request VTW. We can accept a VTW request for RRB certified cases. The RRB does not have to contact us before approving a request for VTW.

NOTE: Inform beneficiaries certified by the Railroad Board that they may wish to check with RRB prior to electing VTW because VTW from Title II benefits can cause an overpayment of RRB benefits.

Only accept a request for the current withholding rates for VTW of 0 percent, 7 percent, 10 percent, 12 percent, or 22 percent only. The IRS sets withholding rates for VTW. Do not input other percentages or flat dollar amounts. For IRS Form W-4V (Voluntary Withholding Request) see GN 02410.017A.

NOTE: Code a 0 percent withholding rate to:

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  permanently or temporarily stop withholding; or

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  elect a future withholding date.

For VTW coding on the Voluntary Tax Withholding (VTWH) screen see Example 3 in GN 02410.017A.4. and MSOM MCS 009.012.

The requester must state the percentage(s) he or she wants withheld for VTW.

If requested, calculate the dollar amount a particular percentage of his benefit represents and round the resulting amount to the nearest dime.

Box 6 of the SSA 1099 (Social Security Benefit Statement) and the Description of Box 3 show the benefit amount deducted for VTW. For information on how we reflect VTW amount deducted on Form SSA-1099, see GN 05002.016.

NOTE: Whenever the MPA changes, we automatically recompute the VTW.

If the beneficiary wants to stop or suspend VTW, or elects a future withholding date, code a 0 percent withholding rate.

Accept a VTW request from a beneficiary in deferred status. If we cannot immediately honor a beneficiary's request for VTW because of deferred benefits, the system holds the request until we can pay benefits.

Do not accept a VTW request from a beneficiary that is in suspense status.

If we suspend or defer benefits after VTW begins, the system defers withholding until benefit payments resume.

If we subsequently determine an overpayment for months when VTW applied, we will include the money withheld in the overpayment amount. The notice explains this to the beneficiary.

Adjust or stop withholding from ongoing benefits if:

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  we withhold too much money and the beneficiary requests a refund; and

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  we can process the request before the end of COM 12 in the same tax year that the erroneous withholding occurred.

If we cannot correct a withholding before the end of COM 12, instruct the beneficiary or his or her representative payee to contact the IRS for a refund.

Refund the amount if:

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  we incorrectly withhold VTW from a beneficiary who did not request VTW; and

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  we can process the refund before the end of COM 12 in the same tax year that the erroneous withholding occurred.

If we cannot make corrections before the end of COM 12 in the tax year when the erroneous withholding occurred, instruct the beneficiary or his or her representative payee to contact the IRS for a refund.

Include all VTW withheld in closed tax years in the repayment amount. SSA will have already reported the funds to the IRS. Consider closed year VTW as paid benefits.

Do not include any VTW withheld during a current tax year in the repayment amount. SSA will not have reported the funds to the IRS.