You cannot have state & local withholding on your SSA benefit. However, many states do not tax disability income. As stated above the feds will tax your SSA benefit if income levels (including 1/2 of SSA benefits) are over a certain level. <BR><BR>Withholding for federal tax CAN be deducted from you monthly payment. To do so see the instructions below from the SSA website. <BR><BR>Peace, <BR>Steph (temporarily "retired" CPA) <BR><BR>If you are already receiving benefits or if you want to change or stop your withholding, you'll need a form W-4V from the Internal Revenue Service (IRS). <BR><BR>You can download the form <A href="<A HREF="http://www.irs.gov">http://www.irs.gov</A>"><A HREF="http://www.irs.gov">www.irs.gov</A></A>, or call the IRS toll-free number 1-800-829-3676 and ask for Form W-4V, Voluntary Withholding Request. (If you are deaf or hard of hearing, call the IRS TTY number, 1-800-829-4059.) <BR><BR>When you complete the form, you will need to select the percentage of your monthly benefit amount you want withheld. You can have 7%, 10%, 15% or 25% of your monthly benefit withheld for taxes.