It appears that the online turbo tax is not calculating the social security taxable amount correctly for married filing jointly. How can I correct this?

[xmasbaby0]

What makes you think it is not calculating correctly?

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2021 it was  $18,960.  For 2022 it was  $19,560  —  for 2023 $21,240)  For 2024, $22,320.  For 2025 it will be $23,400; 2026   $24,480

After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.  If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2025 Form 1040

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is

Single or Head of Household      $25,000

Married Filing Jointly                  $32,000

Married Filing Separately            $0

Some additional information:  There are 9 states that tax Social Security—Colorado, Connecticut,, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont  and West Virginia These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

[xmasbaby0]

 Are you confused by the new "senior deduction?"   Were you expecting that to affect your SS?  That new deduction has nothing to do with your SS. 

The “senior deduction” is added automatically by the software based on the date of birth and filing status you entered into MY INFO.  You do not need to take any extra steps to enter it. (And…the new senior deduction has nothing to do with whether you are getting Social Security)

2025 STANDARD DEDUCTION AMOUNTS

SINGLE $15,750  (65 or older/legally blind + $2000)

MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600)

MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600)

HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)

For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.

(The deduction phases out completely at $175.000 Single or HOH, or $250,000 joint)

The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbo Tax automatically includes it.

IRS Schedule 1-A
https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf

@dlboscana

[VolvoGirl]

@dlboscana  Probably this confusion……

On a Joint return the additional $6,000 deduction for each spouse is gradually phased out if MAGI is over $150,000 to a max of $250,000.

This is  a common misunderstanding.  If you are both over 65  and in the phaseout amount,  the 6% reduction is subtracted from EACH spouse's 6,000 effectively making it 12%.

[dlboscana]

Turbo Tax was saying that I owed zero tax on my social security.  I ran the figures on the IRS worksheet and it showed I owed tax.  I reviewed all the questions in Turbo Tax and the problem was that I had check 'yes' to the foreign residency question.  Once I fixed that everything was fine.

[VolvoGirl]

Thanks for posting back.   Was this on your 2024 return?  Yes that was a common problem last year.  

[dchawkin]

It appears the desktop version of turbotax is not calculating social security taxable amount.  When i go to the worksheet for social security, it is not completed at all, and line 6b on form 1040 has zero for taxable amount.  My AGI is well over the threshold, last year i had to pay taxes on 85%.  Is this a glitch in the program.  What am i suppose to do, fill out the worksheet myself the right way.  Sorda, sad I have to catch this, and do this worksheet manually.  Not able to find if others are having this exact problem.  Help me if you can to understand what i should do.  This is taking longer to resolve than doing my taxes as a whole. 

[VolvoGirl]

Go back through the Social Security entries.  After you enter the SSA-1099 there is a screen that asks if you lived in a foreign country.   Say No.   There’s probably a screen for each spouse if married.   

[VolvoGirl]

Look for a screen like this

[SharonD007]

Review your entries to ensure that you didn't accidently select the box that you are a US Citizen who lives abroad, and lives in one of the countries where SS is tax exempt. 

To review your entries:

1. Go to Wages & Income
2. Go to the Social Security benefits screen 

Refer to the TurboTax article Where do I enter an SSA-1099 for more information.

[minike]

It is not calculating it at all for me! And I know that part is taxable due to my income!

[xmasbaby0]

@minike Did you read the other posts in this thread?   The screen after the entry screen for your SSA1099 asks you if you lived in certain foreign countries in 2025.    If you skip past that screen without answering or answer incorrectly, your SS is not taxed correctly.

[dlboscana]

Check to make sure you answered the "foreign" income questions correctly.  That was my issue.

[minike]

Thank you. I usually work with "FORMS" and it did not ask that question! By saying that I lived in NY full year, I thought I answered my residence question. Obviously not.

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[user17716905516]

There is a general problem with Turbo Tax handling of Social Security fields. Attempting to enter required info in selected step-by-step fields does not work. I suggest that you go to forms view and enter it manually. 

It was the only way I could get the data entered, then proceed (with no further issues).