Worked full time until May, Started collecting SS in June. Turbotax said it would address this later in the software. It never came up and has calculated that 50% is taxable. My understanding was that SS is only taxable based on what I earn after starting to collect. Is this taken into account in the software or do I misundertand something.
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You misunderstand.
There are 2 different things to know about social security. People get them mixed up all the time.
1. Your actual SS checks
If you are over full retirement age your actual ss checks won't be reduced. Otherwise they will actually reduce your payments if you make too much other income in the prior year. But there is a first year rule that they won't reduce it.
See SS FAQ for working after retirement
https://www.ssa.gov/planners/retire/whileworking.html
Special first year rule
https://faq.ssa.gov/en-US/Topic/article/KA-01927
2. Income Tax
For any age 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
Is your Social Security taxable?
https://ttlc.intuit.com/community/income/help/is-my-social-security-income-taxable/00/25600
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