Question

Significant Decrease in Social Security Income Taxable Amount

Forum|Forum|1 year ago
February 25, 2025
3 replies
0 views

Why is my social security taxable amount significantly lower in 2024 than 2023? I was taxed at 55% last year and 43% this year. There was not a significant change in my income, nor any other tax status.

VolvoGirl

Employee

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

To see the Social Security Benefits Calculation Worksheet in Turbo Tax Online version you would have to save your return with all the worksheets to your computer. Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.

SharonD007

We can't tell you why your taxable amount of your Social Security income is lower this year without reviewing your entries, and we can't do that in this forum.

If you are single and made between $25,000 and $34,000 last year, up to 50% of your Social Security is taxable. If you made more than $34,000, you'll pay taxes on up to 85% of your Social Security. When you enter all of your income, TurboTax will calculate the taxable portion of your Social Security.

Refer to the TurboTax Help articles A Guide to Social Security Tax and Is my Social Security income taxable?, How does receiving Social Security affect my taxes?

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Lars6

I can't reply lto your circumstances but I can tell you that Turbo screwed up my taxable SS income too, making it much lower than it should have been. I think they have a major problem on their hands with this issue yet they refuse to talk about it or confront it.

DoninGA

Employee

@Lars6 Click on Forms. When in Forms mode, open the Social Security Benefits Worksheet. Follow the calculations Lines 1 thru 20.

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Lars6

Thanks DoninGA but the IRS already amended my return and increased my tax liability. TurboTax screwed up. They inexplicably put my SS taxable income at 65 percent instead of 85 percent. Not sure what else to say.