topic pension & social security in Get your taxes done using TurboTax

pension & social security

jgl2 — Sat, 06 Feb 2021 19:50:16 GMT

My only income is social security and distributions I take from my 401 pension. I know the distributions are taxable, but I don't understand why that causes a portion of my social security benefits to then be taxable.

Re: pension & social security

VolvoGirl — Sat, 06 Feb 2021 19:51:30 GMT

Up to 85% of Social Security 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

To see the Social Security Benefits Calculation Worksheet in Turbo Tax Online version you would have to save your return with all the worksheets to your computer. Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

Re: pension & social security

xmasbaby0 — Sat, 06 Feb 2021 19:51:35 GMT

TAX ON SOCIAL SECURITY

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 2017 that limit was $16,920 —for 2018 it will be $17,040—for 2019 it will be $17,640— for 2020 it will be $18,240) 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 2020 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.

Some additional information: There are 13 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia. These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

Re: pension & social security

19610 — Wed, 17 Mar 2021 22:31:06 GMT

I don't have to pay on my socialsecurity but I don't know how to fill in the information required on Turbo Tax. Do I just skip it?

Re: pension & social security

ErnieS0 — Wed, 17 Mar 2021 23:07:12 GMT

You should enter the information from your SSA-1099. TurboTax will double-check to make sure it is not taxable.

Type ssa-1099 in Search in the upper right
Select Jump to ssa-1099
Say YES to Did you receive Social Security or Railroad Retirement benefits in 2020?
Check the box Social Security benefits
Enter your information as it appears on your Form SSA-1099. TurboTax will carry your Medicare information to medical expenses

Re: pension & social security

VolvoGirl — Wed, 17 Mar 2021 23:37:47 GMT

@19610 Do you get Social Security or ssi? Did you get a SSA-1099? If you get Social Security it might be taxable.

Up to 85% of Social Security 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

Enter a SSA-1099, SSA-1099-SM or RRB-1099 under

Federal Taxes on the left side or top

Wages and Income

Then scroll down to Retirement Plans and Social Security

Then the second line - Social Security (SSA-1099. RRB-1099) - click the Start or Revisit button

You might be confusing the taxable part with the reduction in benefits. There are 2 different things to know about social security. People get them mixed up all the time.

1. Your actual SS checks

If you are over full retirement age your actual ss checks won't be reduced. Otherwise they will actually reduce your payments if you make too much other income in the prior year. See SS FAQ for working after retirement

https://www.ssa.gov/planners/retire/whileworking.html

2. Income Tax

For any age up to 85% of Social Security 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