Retirement tax questions
It may not be tax free if the SSA-1099 is issued in your name as you indicate. Unfortunately, it did not go to the estate, instead it went to the beneficiaries and therefore the income is owned by each beneficiary. The Social Security Administration (SSA) would not issue income to a decedent and for this reason it must have been paid to each beneficiary which requires the SSA to issue the SSA-1099 to you (and the other beneficiaries).
In your situation you must add it to your tax return to see if you made enough overall taxable income including half of the social security that could require that some may need to be included in your taxable income.
- Example: The basic formula (other details could apply):
- Half of SSA benefits plus all of your other taxable income minus a base amount of $25,000 ($32,000 for married taxpayers). If there is an amount after this formula then some of the social security benefits are taxable. If you arrive at a negative result, then none of the social security benefits are taxable. Enter your form in TurboTax and the calculation is automatic.
Use the steps below to enter your document in TurboTax:
- First you would select your Federal tab in the menu on the left. Then you click on Wages and Income under Federal. Once you click that scroll to Retirement Plans and Social Security
- Select Show more > Select Social Security (SSA-1099, RRB-1099) > Click
- You may see a screen where you need to select 'Work on other income' right after you select Federal in the menu before you reach the other steps
You can also try using the search (upper right) > Type ssa1099 > click the Jump to... link. See the image below.
