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IRA deductible contribution calculation while receiving Social Security Income

Why is the taxable amount of my social security income different on the SS calc worksheet vs the IRA SS Worksheet?  Only a portion of my IRA contribution is showing as deductible on the IRA SS Worksheet because it is showing $3,000 more SS as taxable

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3 Replies
KathrynG3
Expert Alumni

IRA deductible contribution calculation while receiving Social Security Income

It depends. The taxability of social security is a complicated formula, but this link provides additional information: Is my social security taxable? 

 

Start with this calculation to determine what amount should be included in the IRA SS Worksheet.

IRA deductible contribution calculation while receiving Social Security Income

Thanks, I understand that a portion of the SS is taxable.  What I do not understand is why the 2 worksheets arrive at a different amount of the SS that is taxable.  The jSSBenefits Worksheet for 1040 Line 5 calculates the taxable amount at let's say 8000.  However, the SS Recipeints Who Contribute to a Traditional IRA Worksheet PAGE 1 calculates the taxable SS amount at 11,000.  That makes no sense to me as it results in a lower allowable IRA contribution which was not reflected nor calculated until I complete the State tax section.  Then, all of a sudden the calculation changed dramatically.  Since it did not recalculate until the 3rd time I had gone thru the taxes, it makes me suspect that it IS calculating correctly.  Also the SS Benefits Worksheet does not have any of the detail  on lines 2 thru 19 completed on said worksheet - just line 1 & 20.  I recalculated it using excel to confirm that figure.  Again, thank you for your assistance  🙂

MaryK4
Expert Alumni

IRA deductible contribution calculation while receiving Social Security Income

There is a different calculation for the taxable social security for income tax and the new calculation for IRA contributions are different because they are used for different purposes.  

@Winstoncup

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