topic My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00??? in Get your taxes done using TurboTax

My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

vmcintyre25 — Mon, 03 Jun 2019 17:18:43 GMT

I had a deduction from my IRA which was required after I reached 75. Box 7 on my 1099-R says IRA/SEP/Simple. Last year I received all of that money, but this year I have to pay $514.00. What happened? As I stated above, I only increased income by $660.00

The amount of social security that is taxable up to 85% i...

Texas Roger — Mon, 03 Jun 2019 17:18:45 GMT

The amount of social security that is taxable up to 85% is dependent on how much other taxable income you had. The taxable amount of your 1099-R in box 2a is considered when determining how much of your social security is taxable.

You are calculating as my distribution is an early withdr...

vmcintyre25 — Mon, 03 Jun 2019 17:18:46 GMT

You are calculating as my distribution is an early withdrawal. It is not. I have the necessary amount sent to me monthly. Any extra distribution I request has a 10% withholding I requested.

Since you were over 59 1/2 when you took the distribution...

Texas Roger — Mon, 03 Jun 2019 17:18:47 GMT

Since you were over 59 1/2 when you took the distribution, TurboTax would not calculate the early withdrawal penalty on any distribution. You owe ordinary income tax on the entire amount of a traditional IRA distribution unless you contributed some after tax dollars to the IRA. What amounts are in boxes 1 and 2a of your 1099-R?