Turbotax includes 100% of the social security benefits. Per IRS only 85% is taxable. Why does Turbotax include 100% and not the prescribed IRS %?

The TurboTax software cannot tax any more of the SS benefits then is allowed by tax law.

 

Up to 85% of Social Security Retirement/Disability/Survivors benefits 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

Look at your tax return.  Form 1040 Line 6a for the SS benefits received.  Line 6b for the taxable amount of the SS benefits.

 

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

 

 

You did enter the SSA-1099 here, right:

Federal > Wages and Income > Retirement > Social Security

 

But are you looking at the TT Income Summary?  That only shows the gross figure, and is just FYI. The actual gross and taxable numbers are on Lines 6a and 6b of your tax return (and up to 85% is taxable.)

2020 Form 1040 (irs.gov)

 

100% of your Social Security benefits must be present on Form 1040 line 6a.  No more than 85% of the amount on line 6a will appear on line 6b as taxable.