Need to clarify what I've understood so far while trying to project tax due next year.
Married, filing jointly
Annual Combined SSA income: $ 45612.00
Annual Husbands Pension: $ 553.00
IRA Estimated Withdrawal: $13500.00
1/2 of SSA = $ 22806.00
Add pension: $ 553.00
Total: $ 23359.00
Adding IRA W/D: $ 13500.00
Total: $ 36859.00
MFJ=$ 32,000.00 to equal 50% tax on SS income
So we would be taxed on $ 4,859.00.
Is this correct?
Thank you,
Hi berkleys, thank you for joining the TurboTax Special Forum today.
Please refer to Social Security Benefits Worksheet:
Page 16 of IRS Pub 925 - Worksheet 1
https://www.irs.gov/pub/irs-pdf/p915.pdf
Based on the information provided, great job in following the worksheet up to line 12.
Line 13 is half (50%) of line 12 = $2,430 taxable social security.
Assume both of you are 65 and over, the Married Filing Jointly standard deduction is $26,100, which is larger than the total income (pension, IRA withdrawal, taxable social security).
The above is based on 2020 tax rule for estimate only. Hope this helps.
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