@SoCal-Guy-in-CA wrote:
Yes, but when TurboTax calculates the earnings test for recipients of social security benefits, not all of the same expenses that can be used for the SE Tax, can be used for the earnings test. That's what I'm asking unless that's too complex for TurboTax and I need to use a live person at a tax prep service.
There are two issues.
1. Will social security reduce your benefit if you have earned income before full retirement age?
Yes. For purposes of this calculation, the Social Security Administration says they use your "net income from self-employment."
https://www.ssa.gov/pubs/EN-05-10069.pdf
https://www.ssa.gov/benefits/retirement/planner/whileworking.html
Net income from Self-Employment would be line 3 of schedule SE, which includes farm income from schedule F, any income from K-1 statement from partnerships, and your schedule C net income.
https://www.irs.gov/pub/irs-pdf/f1040sse.pdf
Turbotax does not perform this calculation and this calculation has nothing to do with Turbotax. The social security administration reviews your income tax information, and if your earned income exceeds the appropriate dollar value, they adjust your benefit payments for the following year.
2. The other question is, will your social security benefits be taxable if you have other income?
The answer is yes, if your non-social security income plus half your social security income exceeds certain limits, your social security benefit will be partly taxable.
https://www.irs.gov/newsroom/dont-forget-social-security-benefits-may-be-taxable
This calculation is performed by Turbotax, to charge the correct income tax on your social security benefit. It is important to understand that ALL taxable income affects this calculation (including pensions, gambling prizes, and investments), while only earned income affects the amount of benefit you are entitled to receive.
Worksheets to determine how much of your social security benefit is taxable may be found here
https://www.irs.gov/pub/irs-pdf/p915.pdf
