Does Turbo Tax calculate Social Security tax liability?

goldie32050 — Sat, 01 Jun 2019 18:13:08 GMT

Will turbo tax automatically calculate tax on Social Security income?

Yes, when you enter your SSA1099 and your other income, t...

xmasbaby0 — Sat, 01 Jun 2019 18:13:10 GMT

Yes, when you enter your SSA1099 and your other income, the program will calculate how much of your SS was taxable. That will show up on lines 5a and 5b of your Form 1040. When you enter your SSA1099, enter it exactly as it appears--do not try to mess around with that 'worksheet" on the back of the form.

Do not try to enter your SSA1099 or RR1099RB as a W-2. Go to Federal> Wages & Income>>Retirement Plans and Social Security (SSA1099 and 1099RRB) to enter your SSA1099.

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 is $16,920 —for 2018 it will be $17,040—for 2019 it will be $17,640) 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 5a and 5b of your Form 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-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

topic Does Turbo Tax calculate Social Security tax liability? in Retirement tax questions

Does Turbo Tax calculate Social Security tax liability?

Yes, when you enter your SSA1099 and your other income, t...