TN 8 (02-17)
GN 05002.016 Social Security Statement-Box 6, Voluntary Federal Income Tax Withheld
Section 3402(P) of the Internal Revenue Code has been amended to permit voluntary withholding of Federal income tax from specified Federal payments when the recipient of such payment requests such withholding.
A. Description of Box 6
Box 6 shows the amount of benefits voluntarily withheld and paid for Federal income tax. The “Description of Box 3”section of the Form SSA-1099 also shows this amount.
B. Policy for Box 6
1. Voluntary withholding requests
A beneficiary must file IRS Form W-4V, Voluntary Withholding Request with the Social Security Administration to authorize voluntary withholding of Federal Income tax. The IRS Form W-4V has allowed individuals to select one of several percentage rates of withholding since this option became available. Therefore, SSA will honor requests for withholding at any of the old or new rates. SSA will apply the rate chosen only if the benefit amount payable after all deductions is more than the amount for tax withholding. The word “NONE” will appear in this box for beneficiaries who do not elect to have tax voluntarily withheld.
2. When to attach copies of the Social Security Benefit Statement to federal tax returns
In 2012, the IRS began verifying the validity of voluntary tax withholding (VTW) amounts on tax returns pre-refund due to an increase in identity theft with non-compliant VTW claimed on Social Security benefits. Therefore, if the taxpayer elects voluntary federal income tax withholding on their Social Security benefits, a copy of Form SSA-1099 must accompany his or her federal tax return to verify the claimed VTW. The Social Security Benefit Statement Instruction Sheet, Form SSA-1099-F2-INST now instructs beneficiaries to attach a copy of their Form SSA-1099 to their federal tax return if an entry appears in the VTW box on the form.