I am 68 years old and none of my SS benefits should be taxable, why is this form showing over $6,000 of SS income taxable?

[Lisa995]

Taxable SS is based on how much other income you have....did you have other income?

[rosie1]

$28,811 and the SS website says limit is $41,880.00

[Lisa995]

All your other income PLUS half of your SS income (the total of both) needs to be below the limit, or some of the SS will become taxable.

[rosie1]

I never realized that, Lisa.  SS benefits are $15.882 and W-2 income is $28,011, which totals $43.893.  The difference is $2,013 but Turbo tax is stating over $6,000 is taxable.  Is there a number I can call?

[SweetieJean · Accepted solution]

You are confusing two things  One is the limit on your earnings before the SSA reduces your benefits.  If you will reach full retirement age in 2016, the limit on your earnings for the months before full retirement age in 2016 is $41,880.

However, at age 68, you are more than Full Retirement age, so this does not apply to you.

https://www.ssa.gov/planners/retire/whileworking2.html

The second is how much of your SS  benefits are taxable, which does not depend upon your age. See this:

https://faq.ssa.gov/link/portal/34011/34019/Article/3831/Must-I-pay-taxes-on-Social-Security-benefit...

[rosie1]

Thanks for clarifying that, I had always used the first chart and now I will have to tell my boss that I can only work within a certain wage for this year, it seems unfair to pay taxes on SS income you have earned.

[Lisa995]

I agree with that!  Its never made sense to me.