DianeW777
Expert Alumni

Retirement tax questions

Yes, I understand.  Since you already have taxable income before including the social security, first divide the amount of taxable social security by the total amount of social security received.  It's likely this same percentage or possibly higher/lower depending on future circumstances.  Most importantly, the maximum that can be taxed is 85% of social security.

 

Once you determine the percentage of your social security that is being taxed, you should do the following:

  1. Based on your taxable income (Form 1040, Line 15) review the marginal tax rates below.  The rate where you income falls is the percentage that will be used for tax liability on your social security taxable income amount.
  2. Next, divide that by four installments and add that to the estimated tax you calculated on other income for 2022
  3. Lastly, you are not required to pay more than 100% of 2021 tax to eliminate any underpayment penalty.*
    • *NOTE: Higher income taxpayers.

      If your adjusted gross income (AGI) for 2022 is more than $150,000 ($75,000 if your 2022 filing status was married filing separately), substitute 110% for 100% in (3) above.

Please update here is you need further assistance.

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