thalsell
Returning Member

Get your taxes done using TurboTax

You need to modify the response as your solution will produce a 15% or 100% reduction in AGI when it should have zero affect. Tested this several times.

 

SS is taxed based on Income level with say $34,000 being exempt. $0 to 85% of the SS income is taxed so if the Income is taxed 85% and you put in other Deductions (TTO must be in Other Income as a negative) you get a 15% deduction ($24,000 SS income is taxed up to $20,400) If you put $24,000 as negative income you get a $3,600 reduction in AGI.  If you put in $20,400 it still produces a difference.  There is a circular computation.

 

So the best solution is to put Misc Income line   SS income  - SSA-10999 $24,000 and a negative Misc income line  Exempt SS income  - see F883 $-24,000.  

 

This will report the income and exemption and has no affect on any other calculations.  This is the best solution until TT changes the input.