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berkleys
Level 1

Clarify SSA tax projection for next year

Need to clarify what I've understood so far while trying to project tax due next year.

Married, filing jointly

Annual Combined SSA income: $ 45612.00

Annual Husbands Pension: $ 553.00

IRA Estimated Withdrawal: $13500.00

1/2 of SSA = $ 22806.00

Add pension:    $ 553.00

Total:              $ 23359.00

Adding IRA W/D: $ 13500.00

Total:               $ 36859.00

MFJ=$ 32,000.00 to equal 50% tax on SS income

So we would be taxed on $ 4,859.00.  

Is this correct?

Thank you,

1 Best answer

Accepted Solutions
KochuK
Employee Tax Expert

Clarify SSA tax projection for next year

Hi berkleys, thank you for joining the TurboTax Special Forum today.

 

Please refer to Social Security Benefits Worksheet:

 

Page 16 of IRS Pub 925 - Worksheet 1

https://www.irs.gov/pub/irs-pdf/p915.pdf

Based on the information provided, great job in following the worksheet up to line 12.

Line 13 is half (50%) of line 12 = $2,430 taxable social security.

 

Assume both of you are 65 and over, the Married Filing Jointly standard deduction is $26,100, which is larger than the total income (pension, IRA withdrawal, taxable social security).

The above is based on 2020 tax rule for estimate only. Hope this helps.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
KochuK
Employee Tax Expert

Clarify SSA tax projection for next year

Hi berkleys, thank you for joining the TurboTax Special Forum today.

 

Please refer to Social Security Benefits Worksheet:

 

Page 16 of IRS Pub 925 - Worksheet 1

https://www.irs.gov/pub/irs-pdf/p915.pdf

Based on the information provided, great job in following the worksheet up to line 12.

Line 13 is half (50%) of line 12 = $2,430 taxable social security.

 

Assume both of you are 65 and over, the Married Filing Jointly standard deduction is $26,100, which is larger than the total income (pension, IRA withdrawal, taxable social security).

The above is based on 2020 tax rule for estimate only. Hope this helps.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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