I will be 70 1/2 before end of 2018 and need to take dist from IRA. Under new tax code will my Soc Sec be taxable as well as my dist from my IRA? Thanks for helping me.

[martindarby]

"I will be 70 1/2 before the end of 2018 and will need to take a distribution from my IRA. Under the new tax code will my Soc Sec be taxable as well as my distribution from my IRA? I file an individual return. Thanks for helping me."

[Critter · Accepted solution]

Under the new tax code nothing has changed in your situation ... your SS benefits can be up to 85% taxable depending on your other income on the return. The program calculates this for you automatically.

 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

For the first  $12,000 (MFJ), after reaching that $32.000 threshold, only 50% of your SS is taxed. After that 85% is taxed. And gradually the  50% taxed  is replaced with the 85%. It's the government; they make it complicated. See IRS Publication 915. When TT prints out your return, it will provide you with the  IRS social security worksheet showing you how the taxable amount was calculated.  Here’s a copy showing you how the calculation is done:
http://apps.irs.gov/app/vita/content/globalmedia/social_security_benefits_worksheet_1040i.pdf If your use form 1040A, instead of 1040, see http://taxtopics.net/ssatax.pdf

[martindarby]

This is very helpful. Thank you so much. Can you let me know whether there are any changes to these rules for 2018 following the passage of the recent tax legislation approved by congress? Thanks!!

[Critter]

none

[Hal_Al]

Notice that adding the Required Minimum Distribution (RMD or MRD) to your total income may make more of your SS taxable.