I am having trouble determining “tax exempt interest” and “taxable SS benefits” for years 2011 through 2017

[SteamTrain]

not sure what you mean
....you enter all of your tax-exempt $$ (box 8 on 1099-INT and box 10 on a 1099-DIV) , and all of your gross SS income in the software, then ALL of your other income and deductions.....and then the software will calculate how much of the SS is taxable and put it on the proper lines in the tax form

[rfechter2]

Thanks, got the part on tax exempt interest.  I need to also determine for years 2011 through 2017 my “taxable SS benefits” My spouse is still working and our combined incomes exceed the $32,000 mentioned on IRS Notice 703 so does that mean my SS payment for the respective years 2011 through 2017 is entirely taxable?  It states “part” of my SS “may” be taxable — which part?

[Lisa995]

The program does all these calculations for you...are you trying to do this yourself on paper forms?

[rfechter2]

When there is a multiple year payment (lump sum) turbo tax asks me to enter “taxable SS benefits” for 2011, 2012, 2013 and so on.  I don’t know the answer

[rfechter2]

I’m not trying to do this on my own, merely trying to enter the information that Turbo Tax is requesting

[rfechter2]

I’m not trying to do this on my own, merely trying to enter the information that Turbo Tax is requesting

[SteamTrain]

Ok...i finally went thru the interview to see what the software  asked for.

1)  If in that prior year ( say 2011) you neither received, nor reported any SS income for the 2011 tax return in question. then you enter a zero for "Taxable Social Security Benefits for 2011"
or
2)  IF on your 2011 tax return that was already filed a long time ago.....if you reported some SS income that year, then you have to look at the actual tax form from 2011, and enter the taxable amount shown on (Form 1040 line 20b....or form 1040A, line 14b)...............
________________
Then repeat for every prior year, for which you have received a lump-sum $$ amount  during 2017.

naturally, you need a copy of every prior year's tax return, for which you have now received a lump sum in 2017

[rfechter2]

Thank you!

[Anita01 · Accepted solution]

As indicated in the comments above, you do need to actually look at the prior year tax returns you filed in order to complete this interview.  The point of all these questions is that, when you receive a lump sum payment for prior years, you should never owe more tax on it than you would have paid if you had received the benefits during that prior year.  There is a special form that's needed to make this determination and that's why you are being asked all these questions.