Calculation of tax due from untaxed Social Security paid in 2023

[gwinnyb66]

How do I calculate tax due from Social Security paid in 2023 if I choose not to deduct taxes the first year?  You can not set the taxes up via the SSA online site, so I waited until I went to an office in person.  My Social Security benefits started in April of this year.  I am not deducting taxes from payments until 2024.

[Jackstar221]

Hi,

Here is a link to the IRS withholding estimator:

https://www.irs.gov/individuals/tax-withholding-estimator 

Just click Use the tax withholding estimator, takes about 15 minutes.

Here is another useful too:

https://www.covisum.com/resources/taxable-social-security-calculator 

Lastly, here is another tool that TurboTax uses:

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ 

Thank you,

John

CPA

[conniem123]

Hi gwinnyb66,

I hope you are having a great day!  I understand you are trying to calculate how much of your social security benefits will be taxable and how much is the tax.

The portion of your social security benefits that are taxable will depend on your other income, and the tax will depend on your other taxable income also.

Here is a great resource to help you determine how much of your social security benefits will be taxable; https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/social-security-inco...

Here is a tax calculator to help you determine the tax, https://turbotax.intuit.com/lp/ppc/2168?srqs=null&cid=ppc_gg_nb_stan_all_na_Calculator-CalculatorEst....

I hope you find this information helpful!

Connie

[Cate9]

Those are great links provide in the first response.  I encourage you to use those to get an estimate of the taxes you need to pay.  

You want to keep in mind that the amount of your social security that is taxed, will be based on the amount of your other income. 

You will pay tax on only 85 percent of your Social Security benefits, based on Internal Revenue Service (IRS) rules. If you:

• file a federal tax return as an "individual" and your combined income* is
  • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
  • more than $34,000, up to 85 percent of your benefits may be taxable.
• file a joint return, and you and your spouse have a combined income* that is
  • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
  • more than $44,000, up to 85 percent of your benefits may be taxable.
• are married and file a separate tax return, you probably will pay taxes on your benefits.

The above is from this link that helps understand your potential tax situation. https://www.ssa.gov/benefits/retirement/planner/taxes.html#:~:text=between%20%2425%2C000%20and%20%24....

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