2022 Miscalculation of Taxable Social Security Benefits?

Depending on the total combined income, up to 85% of your SS benefits are taxable.

 

The exact percentage is a sliding scale between 50% and 85%. It is not fixed at 85%. TurboTax will calculate automatically the taxable portion of your SS benefits.

 

Please read this TurboTax blog on the taxation of Social Security benefits.

 

 

 

Our combined wages, IRAs & pensions exceeds $63,000 so aren't all of our SS benefits taxed at 85%?

Thank you.

For those with additional sources of income besides Social Security, the key figure in the calculation is the Modified Adjusted Gross Income (MAGI). The MAGI includes half of your Social Security, plus other sources of income. Once your MAGI exceeds the base amount for your filing status ($32,000 for Married Filing Jointly or $25,000 for all others), at least part of your Social Security income becomes taxable. The taxable portion of your Social Security income increases once you reach additional MAGI thresholds.

 

Fifty percent of a taxpayer's benefits may be taxable if they are:

• Filing single, head of household or qualifying widow or widower with $25,000 to $34,000 income.
• Married filing separately and lived apart from their spouse for all of 2020 with $25,000 to $34,000 income.
• Married filing jointly with $32,000 to $44,000 income.

Up to 85% of a taxpayer's benefits may be taxable if they are:

• Filing single, head of household or qualifying widow or widower with more than $34,000 income.
• Married filing jointly with more than $44,000 income.
• Married filing separately and lived apart from their spouse for all of 2021 with more than $34,000 income.
• Married filing separately and lived with their spouse at any time during 2021.

 

See here for further explanation from the IRS.

 

See this help article for more information from TurboTax on this topic.