How does TurboTax handle the non-taxable part of social security? TurboTax only allows entry of the gross amount. Don't want to pay taxes on non-taxable amt.

[DoninGA · Accepted solution]

Look at your tax return, Form 1040 Line 20 and 20b, Form 1040A Line 14a and 14b

Click on Tax Tools on the left side of the screen.  Click on Tools.  Click on View Tax Summary.  Click on Preview my 1040 on the left side of the screen.

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

To enter Social Security benefits reported on form SSA-1099

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On Social Security (SSA-1099, RRB-1099), click the start or update button

Or enter social security benefits in the Search box located in the upper right of the program screen.  Click on Jump to social security benefits

[phildon]

I entered my social security benefits as reported on my Form SSA-1099 but when I look at TurboTax only 28% shows as taxable. Last year 85% was taxable. This does not look correct. Can you help? 

[VolvoGirl]

Have you entered all your other income yet?

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

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 left side.

[VolvoGirl]

Last year did you maybe have a big one time increase in income?  Like take a 401K or IRA withdraw or convert to a ROTH?