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posted Jun 4, 2019 10:11:15 PM

The State of Arizona does not tax Social Security income. Why is Turbo Tax program is only deducting $12,317 of total $14,490 Social Security income for tax year 2016 ??

Is there a way to input the full amount ??

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1 Replies
Level 13
Jun 4, 2019 10:11:17 PM

First, I am assuming that $14,490 is the total amount of your Social Security receipts and that $12,317 is the taxable amount of the Social Security on your federal return.

This is because no more than 85% of your Social Security can be taxed on the federal level ($12,317 is 85% of $14,490).

IF you are filing a return as an Arizona resident for the full year, then TurboTax automatically deletes any taxable SS entered on the SSA-1099 on the federal return.

If you look at the screen entitled "Adjustments Summary", you will see a subtraction for "Social Security or Railroad Retirement". The number $12,317 is here because that is all the Social Security that was taxed on the federal return (remember that no more than 85% of your Social Security can be taxed on the federal return). So this is the only amount that needs to be subtracted.

Once the $12,317 is subtracted, then there is no Social Security taxed in Arizona (because the other 15% wasn't taxed on the federal either).