Modesto SSD and Taxes Lawyers
Some people who are receiving disability benefits are surprised to find that, after filing an income tax return, their Social Security benefits are taxable. Since the benefit is taxable, there may not have been enough tax withheld throughout the year, which not only requires that the person pay taxes before April 15th, but can also cause a penalty for the underpayment of tax.
Knowing your rights regarding income taxes, FICA withholding and Social Security disability benefits is crucial and can save you money in the long run. By consulting with an experienced tax attorney, you can feel confident about making the right decisions. Milam Law does not take these types of tax cases, as we do disability cases only.
Information on this website is provided as a service of Milam Law. Contact us regarding Social Security disability (SSD) claims and denials.
Fresno FICA Withholding Attorneys
There are four ways that a person can deal with the possible underpayment of SSD taxes to make sure that there is no underpayment penalty:
1. Estimate tax payment: While this isn't the same as withholding, it serves the same purpose. Payments can be made throughout the year, often in equal amounts, that will take care of any taxes.
2. Withhold from an IRA distribution: When you take a distribution from your IRA or 401(k), you have the option of having someone report and withhold taxes. Whether you do it all at once or in monthly distributions, the withholding is counted.
3. Withhold from other income: You can have tax withheld from many other sources of income. These sources can be set up with tax being withheld throughout the week. This is done by filling out a W-4 for pensions, and you can set the amount of withholding to what makes sense for your situation.
4. Withholding from Social Security benefit: You can set up your SSD payments to have tax withheld from each one.
Contact Our Attorneys to Learn More Information
If you are disabled, contact us at Milam Law; however, contact a tax attorney to learn more information about FICA withholding and disability benefits.
