Hi Bill,
thanks for the reply and spotting my typo - correct my SS benefit should not be taxed !
I've done the SS tax calcuation manuall and it agrres with TT ie on a benefit of $15564 taxable amount is $5211.
Following Irene's guidance and checking Schedule 1 line 8 is does indeed show $-5211 however line 5b shows $ 2606 while line 5 a shows $15564.
Before I folowed Irenes guide line 5b showed $5211.
I'm not convinced I've got this quite right as it means it doubles my tax refund, basically I get back all the USD tax I had paid during the year - this is because subtracting my SS income takes me below the MFJ $24400 and thus results in no tax due.
Line 7a on 1040 has gone negative (-5925) as the $15564 is greater than other income sources (UK government employment pension).
Last year I had a CPA do my taxes and the numbers were essentially the same but taxable income was $8000 with $326 payable due to UK tax credits.
The CPA set line 5b to zero but did not add any negative income to offset the SS income. My adding it as a negative income reduces my overall line income on line 7 of 1040 as line 22 schedule 1 goes negative as a result.
Basic question is do I enter $15564 or taxable amount of $5211 negative into other income ?
Entering $15564 makes box 5b go to zero and tax refund remains the same ie I get all my USD payments back.
Apologies if I've misuderstood something but I want to make sure I get this correct !
Regards Tim
