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Level 3
posted May 3, 2023 3:14:11 PM

Non taxable payments on Social Security

Can you deduct this on the tax return? it says Non-Taxable payments on the SSA-1099

0 3 1087
3 Replies
Level 15
May 3, 2023 3:38:25 PM

Can you deduct this on the tax return?   NO

Level 15
May 3, 2023 4:42:34 PM

Critter 3 is right when she says

Social Security

is not deductible but it’s being taxable is a different question. See the question “Do I have to pay taxes on my SS benefits?” here https://www.irs.gov/faqs/social-security-income for the Fed info.

 

See this for info on the 11 states that tax SS benefits, https://www.thebalancemoney.com/states-that-exempt-social-security-3193304

 

TurrboTax can handle all he variables related to SS taxation.

Level 15
May 3, 2023 5:16:00 PM

 

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 2019 it was $17,640— for 2020 it was $18,240; for 2021 it was  $18,960.  For 2022 it was  $19,560    for 2023 $21,240)

 

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.

 

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2022 Form 1040

 

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

 

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 $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.