My spouse collects social security benefits. Does that income need to be reported for 2017? It was her only source of income.

[Carl]

If you are filing a joint return, and the only income to be reported on that joint return is social security, then no return needs to be filed at all. Otherwise, yes you have to include the SS income. Filing separate returns won't help either, as the IRS closed that loophole.

[DoninGA]

You are filing as Married Filing Jointly, correct?

[Hal_Al · Accepted solution]

Social security only becomes taxable when added to sufficient other income, including the spouse's income. If you are otherwise required to file a tax return, you do need to enter her social security  in Turbotax (TT). TT will determine the taxable portion, if any.

Social security (including SSDI) becomes taxable when your income, including 1/2 your social security, reaches:

Married Filing Jointly(MFJ): $32,000

Single or head of household: $25,000

Married Filing Separately and lived with your spouse at any time during the tax year: $0

After TurboTax (TT) calculates the taxable portion of SS, it puts the total amount of SS on line 20a of form 1040 and the taxable amount on line 20b (lines 14a&b of form 1040A). TT also produces a worksheet  to show how the taxable amount is calculated. Although most people pay tax on 85% of their SS. it can be less for lower income taxpayers.