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Experts at Maximize My Social Security have answered more than 10,000 questions about Social Security over many years. Search for your questions and answers here.
Does Social Security Withhold Taxes From Lump Sum Back Payments?
When you receive a DRC lump sum, do they withhold tax like in my monthly benefit?
I received my lump sum, but no detail, just an amount. Thanks!
Hi. Social Security only withholds taxes from benefits when asked to do so by the beneficiary. As far as I know, taxes are only withheld from regular monthly benefits, so I doubt if Social Security would have withheld taxes from your lump sum. However, you should be receiving a notice in the mail explaining the payment you received, and that notice should tell you whether or not taxes were withheld.
Best, Jerry
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April 5, 2023