Retirement tax questions


@tami_y_leak wrote:

Thank you, that IS helpful. The problem I'm running into is that the form in Turbotax asks how much my mom earns, but it doesn't give the opportunity to say that the entirety of those earnings are from social security. Should I just enter that she earns nothing?


Does turbotax really say that exactly?  If so, it's a badly worded question.  You should be asked about your mother's taxable income -- that would include a pension, gambling winnings, investments, but not social security.  (Earned income means something more specific.)  (Meaning, if she won more than $5050 at the casino or bingo, she can't be your dependent this year.)

 

If her only income is her SS benefit, it is not taxable, but it does count as support she provides to herself.  You would have to add up all her total support costs and determine if, considering the SS benefit, you still provide more or less than half her support.