If Social Security is your only income, none of it should be taxable. If you have other taxable income, then up to 85% of your Social Security income may be taxable. The exact taxable amount depends on a complicated formula.
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
To see the Social Security Benefits Calculation Worksheet in Turbo Tax Online version you would have to save your return with all the worksheets to your computer. Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.
Where did you get 50%? You do add 50% of SS to your other income just to calculate how much it taxable. The taxable amount can be between 0-85%.
The taxable amount of Social Security is a range.
For Single between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. For more than $34,000, up to 85 percent of your benefits may be taxable.
For Joint between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits. For more than $44,000, up to 85 percent of your benefits may be taxable.
See,
Benefits Planner | Income Taxes And Your Social Security Benefit | SSA
Were you trying to use the worksheet on the back of your SSA-1099 or Notice 703? You should not use the worksheet on the back of the SSA-1099. It can be complicated to figure out even though it looks simple. Turbo Tax figures it all out for you.
When you enter 1/2 of your ss on line B it is not being subtracted from anything. It is being ADDED to ALL your other income to see if any of the ss will be taxable to you.
I am talking about TurboTax Deluxe - if on our 1040 form line 6 we have $58,xxx on line 6 why would the taxable amount be less than 50% in this case 25,6xx. I realize it can be taxed up to 85% but don't understand TT using less than 50% as taxable, and can't find any reference or table to where the taxable portion would be less. (AGI 62K)