Why does Turbo list in 6b the taxable amount on our social security benefits as $13, 876 when the IRS says the taxable amount is $170?

[honey1616]

The statement I received from the IRS states, "If you are required to file a tax return, enter $47,582 on the 'Social Security Benefits' line and $170 as the ' Taxable Amount'.

[JohnW152]

It sounds like you may have received a lump-sum payment from Social Security.

A lump-sum payment is a one-time Social Security payment that you've received for prior-year benefits. Depending on what you've input into the program, TurboTax may be computing the taxable portion as regular in-year payments.

If this is what's going on, then, to address this in TurboTax Online:

1. If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit. 
   • Otherwise, in the left pane, select Federal, then Wages & Income (This is labelled Income & Expenses in TurboTax Self-Employed)
2. Scroll down and select the Edit dropdown to the right of Social Security (SSA-1099, RRB-1099)
3. Proceed through the screens until you come to the Did you receive any lump-sum payments? page.  Select the bullet next to Yes, [taxpayer] received at least one lump-sum payment for 2021 or earlier, then select Continue
4. Continue through the ensuing pages, providing all information as appropriate

If this wasn't a lump-sum payment, please respond back.  Please also explain what else the letter from the IRS said.

[honey1616]

Hi!  There was no lump sum payment from SS. I tried to send an attachment of the statement without success.

[fanfare]

is the letter from IRS.?

does the letter direct you to call some number and provide additional information?

Something is fishy.

@honey1616 

[honey1616]

Yes.  The statement is from the IRS.  It was in response to my asking if are our SS benefits are taxable.  It says,  "Worksheet 1 from publication 915, Social Security and Equivalent Rail Road Retirement Benefits was used to calculate the taxable amount of the benefits.  If you are required to file a tax return enter $47,582 on the SS benefits line and $170 as the taxable amount."

[BillM223]

My guess is that you have other income like IRA or 401(k) distributions that causing a large amount of your SS to be taxable. TurboTax uses the same worksheet that the IRS uses to calculate what percentage of SS income is taxable, so there must have been a difference in what each side started with.

Tell you what, go to this IRS Interactive Tax Assistant and enter everything and see what you get.

[honey1616]

That's where I went, answered all questions and that is the response I got...taxable amount $170.

[honey1616]

There were no distributions and the only other taxable income was from pensions of $8,549 that was included in the inquiry.