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If you are receiving Social Security benefits, you could be responsible for paying federal income tax on these benefits. You can estimate what you might owe and pay the tax quarterly, pay the lump sum once a year, or have a percentage withheld from your benefit check.

• If you estimate your tax and send a check to the IRS each quarter, you will need to remember to do this and be sure you have set aside the amount you will need for the check.

• If you pay a lump sum once a year, you might be subject to a penalty if this amount is above a certain amount. You could also put yourself into a bind since this could be quite a large sum of money.

• Probably the least painful method of paying these taxes is by having them withheld from your check each month.

If you file a federal income tax return as an individual and your total income is more than $25,000 you will have to pay taxes on your Social Security benefits. If you file a joint federal income Tax Return and you and your spouses total income is more than $32,000 you will have to pay taxes on your Social Security benefits.