Social Security Taxable over $25,000 Not working correctly in Turbo Tax. SS 2025 34619 Wages 73363 Pension $236 Need formula?

[vmummey]

Turbo Tax is not calculating the taxable portion properly

[JohnB5677]

Social Security is still being taxed as it was in the past; however, there's a new $6,000 deduction for individuals older than 65 years old.  Also, a $12,000 deduction would apply to couples who qualify.  

• This deduction is for qualified individuals.
  • Age: You must be 65 or older by the end of the tax year (e.g., born before Jan 2, 1961, for 2025 returns).
  • Income Limits: Your Modified Adjusted Gross Income (MAGI) must be below certain thresholds (e.g., $175k single, $250k joint for 2025), with deductions phasing out above those levels.
  • Benefit: Up to $6,000 (single) or $12,000 (joint) Additional standard deduction to reduce taxable income. 
• Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

The full taxable amount is included in your gross income on Form 1040; however, the Senior Deduction is reflected on line 13b.

 It is reflected on Schedule 1A, Part V, Line 37

 For more information, see Deductions for Seniors.

[DoninGA · Accepted solution]

Up to 85% of Social Security Retirement/Disability/Survivors benefits 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

The taxable amount of the SS benefits are entered on Form 1040 Line 6b

If you are using the TurboTax desktop editions, click on Forms.

When in Forms mode select Social Sec on the left side of the screen to open the Social Security Benefits Worksheet