Social Security-The Turbo Tax software does not appear to be correctly calculating the taxable portion of social security for married filing jointly. Is there a solution?

Forum|Forum|2 years ago
March 8, 2024
3 replies
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I entered total Soc Sec from box 5 on the SSA-1099. Completed the remainder of the income section. In the Federal Tax review, the total income used includes 100% of the Soc Sec income when it should be only 85% according to IRS publication 915-Worksheet 1 and using my other income show in Turbo Tax. Is there a solution?

TurboTax Online

Best answer by VolvoGirl

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. 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

Check 1040 line 6b for the taxable amount.

xmasbaby0

Employee

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable on your federal tax return. There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits. When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.

What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2019 it was $17,640— for 2020 it was $18,240; for 2021 it was $18,960. For 2022 it was $19,560 — for 2023 $21,240) For 2024, $22,320.

After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare. If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2023 Form 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Some additional information: There are 11 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

The tax laws for 2024 will change——for tax year 2024 Missouri and Nebraska will no longer tax SS

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

lbnoonAuthor

Thank you for you kind and quick response, but this does not answer my question.

My husband is full retirement age and draws the social security. He did not work so there is no reduction. We file married filing joint. IRS publication 915 states that the maximum portion of taxable income can be up to 85% of social security. Turbo Tax, on the Federal Review tab, has 100% of the social security included in my husband's taxable income. This is incorrect. Is there a solution or workaround in Turbo tax?

xmasbaby0

Employee

Instead of the review page you need to be looking at the actual tax form. That review page can confuse people. What do you see on lines 6a and 6b of the Form 1040?

VolvoGirlAnswer

Employee

Check 1040 line 6b for the taxable amount.

lbnoonAuthor

You are correct. The actual form 1040 does show the correct amount at 85%. It is confusing to look at that Federal Review tab and even when looking at the details on that Federal Review tab you do not see the correct amount from the soc sec calculation.

Thank you for being patient with me and helping me ensure that the correct amount is being used.

8812

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