My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

vmcintyre25 · ‎June 3, 2019

I had a deduction from my IRA which was required after I reached 75. Box 7 on my 1099-R says IRA/SEP/Simple. Last year I received all of that money, but this year I have to pay $514.00. What happened? As I stated above, I only increased income by $660.00

Texas Roger · ‎June 3, 2019

The amount of social security that is taxable up to 85% is dependent on how much other taxable income you had. The taxable amount of your 1099-R in box 2a is considered when determining how much of your social security is taxable.

View solution in original post

vmcintyre25 · ‎June 3, 2019

You are calculating as my distribution is an early withdrawal. It is not. I have the necessary amount sent to me monthly. Any extra distribution I request has a 10% withholding I requested.

Texas Roger · ‎June 3, 2019

Since you were over 59 1/2 when you took the distribution, TurboTax would not calculate the early withdrawal penalty on any distribution. You owe ordinary income tax on the entire amount of a traditional IRA distribution unless you contributed some after tax dollars to the IRA. What amounts are in boxes 1 and 2a of your 1099-R?

My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

Get your taxes done using TurboTax

Get your taxes done using TurboTax

Get your taxes done using TurboTax