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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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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.
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 🙂
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.
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