social security 50% tax is at 34,000 why does turbo tax rate it at 85% when My income would be 32,042.00

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March 24, 2024
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social security 50% tax is at 34,000 why does turbo tax rate it at 85% when My gross income would be 32,042.00

Best answer by VolvoGirl

The 50% is not the max percent taxable. It is being added to y our other income to determine how much is taxable.

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

You should not use the worksheet on the back of the SSA-1099. It can be complicated to figure out even though it looks simple. Turbo Tax figures it all out for you.

When you enter 1/2 of your ss on line B it is not being subtracted from anything. It is being ADDED to ALL your other income to see if any of the ss will be taxable to you.

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 right side.

Before filing you can preview the 1040 or print the whole return
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

DoninGA

Employee

Look at your Form 1040 on Lines 6a and 6b. The taxable amount of your SS benefits is on Line 6b.

baum1bushAuthor

I am still in turbo tax and it is showing that my social security is being taxed at at 85% when it should be at 50% because it is under 34,000

AnnetteB6

The taxable amount of your Social Security is determined by looking at your income amount ($32042) plus half of the Social Security that you received. If you received any amount of Social Security benefits above $1958 times 2 ($3916), then it will be taxed at 85%.

There is a Social Security Worksheet included as part of your return that will show you the calculation.

@baum1bush

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VolvoGirlAnswer