turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Ronnell
New Member

Pension used to determine what amount of social security to tax

Hello, I'm doing taxes for an 86 year old lady who had $14,000 in pension distributions (code 7) and that $14k was added to half her social security and caused $2000 of her social security to be taxed.  Everything I read says pension is not considered income for that purpose.  It is a standard distribution from a pension, nothing fancy.  I get she has to pay taxes on the $14k but why is it in the social security tax calculation?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies

Pension used to determine what amount of social security to tax

Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

  • Married Filing Jointly - $32,000
  • Single or Head of Household - $25,000
  • Married Filing Separately - 0
Ronnell
New Member

Pension used to determine what amount of social security to tax

Correct BUT pension is  not to be included in that other income per social security admin.

Pension used to determine what amount of social security to tax

Pension income is taxable on a federal tax return.  It is included in the calculation for determining the taxable amount of the SS benefits.

 

I have been retired and receiving pension income for 20 years and have been receiving SS benefits for 13 years.  The SS benefits being received are being taxed appropriately,

 

You will need to provide link to the Social Security Administration website where they indicate that pension income is not to be included in the calculation for the taxability of the benefits received.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies