Does Turbo Tax include necessary calculations for IRS Notice 703 - Social Security Benefits maybe taxable?

[mhgrossie]

Does Turbo Tax complete IRS Form 703 and enter the proper information in the IRS Return 1040? Received a notice from Social Security that IRS Notice 703 must be completed to see if any taxes are owed on Social Security Income.

[VolvoGirl]

Yes.  Turbo Tax calculates it.  

You don't enter the 703 on your return.  When you enter the SSA-1099 Turbo Tax calculates the taxable amount for you.   The 703 is a worksheet for you to see how much of SS is taxable but it can be tricky to fill out and you might not come up with the right amount.

You should not use the worksheet on the back of the SSA-1099.  It can be complicated to figure out even though it looks simple.  Turbo Tax figures it all out for you.

When you enter 1/2 of your ss on line B it is not being subtracted from anything.  It is being ADDED to ALL your other income to see if any of the ss will be taxable to you.

To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.   Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the right side.

Up to 85% of Social Security 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

Check 1040 line 6a and 6b for any Taxable Amount.

[DoninGA]

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

If the SS benefits are taxable, TurboTax makes all required calculations necessary based on the tax code.  And has done so since the program was first released over 30 years ago.

[AL618]

Received a Letter from IRS stating that the TT calculated tax on Social Security Benefits on Line 6B was incorrect.  Therefore, instead of an expected rebate I now owe the IRS.  After checking Pub 915, and previous several years tax returns TT should have calculated the SS tax at 85% based on my total income; however TT only calculated about 26.5%.  My research agrees with the IRS letter I received. It appears to me as a TT Software calculation issue with determining SS Benefits for line 6B.  We filled married, filing jointly.  What are my options to get TT to own up to their apparent software issue and reimburse for additional taxes I have to pay because of TT calculation error.

AG

[DaveF1006]

Yes, TurboTax does offer an accuracy guarantee.  If you feel like this an error, you may submit your claim here.

How do I submit a claim under the TurboTax 100% Accurate Calculation Guarantee or 100% Accurate, Exp...

[DoninGA]

@AL618 If this was a TurboTax calculation error then they will pay for any penalties and interest but not taxes owed.  The taxes owed are the responsibility of the taxpayer.

Go to this TurboTax support FAQ for how to file an Accuracy claim - https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turb...

[VolvoGirl]

@AL618   Usually when the IRS increases the taxable amount of your social security it's because they increased some other income on your return.  Or one of the entries showed up on the wrong line.   Especially like any 1099R you got.   If a 1099R got on the wrong line like1040 line 5 instead of line 4, the IRS might  miss it and say you didn't report it.  

Or there is a new question this year asking if you are a US citizen living abroad in one of these countries?  People have been answering that wrong of skipping it which makes your ss not taxable.