topic Error in Social Security Income in Retirement tax questions

Error in Social Security Income

atmccawww — Mon, 27 Jan 2025 21:19:56 GMT

The program allows me to add my Social Security Income but it’s not being calculated into my total income for tax owed calculation. I think there is an error in the software because my Social Security Income does not qualify for an exemption. I put a support call into your support line but it would only help if I got the upgraded MAX version. I find this extremely irritating since the problem isn’t a tax question it’s a software error question. Please advise how this can be resolved or I might just stop using your product after decades of prior use.

Anne Cross

Re: Error in Social Security Income

VolvoGirl — Mon, 27 Jan 2025 21:21:09 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.

Before filing, You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

Re: Error in Social Security Income

BrittanyS — Mon, 27 Jan 2025 21:31:14 GMT

TurboTax will calculate the taxable portion of your social security based on the other income that is entered. If you do not believe the calculation is correct, you will want to verify the other income entries to make sure they are correct.

Social Security Income becomes taxable after your other income reaches a certain limit. According to the IRS, your Social Security becomes taxable if the following situations occur:

single filers if half their social security added to their other income totals more than $25,000
married filing jointly filers if half their social security plus half their spouses social security plus their total other income totals more than $32,000, then part of their Social Security may be taxable.

For more information on how Social Security is taxed, see the link below:

Is Social Security Taxable?

@atmccawww

Re: Error in Social Security Income

atmccawww — Mon, 27 Jan 2025 23:37:09 GMT

Yes my social security plus other income exceed $25000 as a single filer so it should be included in my taxable income calculation but it doesn’t. Program bug?

Re: Error in Social Security Income

VolvoGirl — Mon, 27 Jan 2025 23:45:27 GMT

It’s not that simple. It’s a formula. It’s when 1/2 of SS is added to your other taxable income part of SS MAY be taxable. have you entered all your income yet?

You can try using the worksheet 703 on the back of the SSA-1099. It can be complicated to figure out even though it looks simple. Turbo Tax figures it all out for you. Notice 703

https://www.irs.gov/pub/irs-pdf/n703.pdf

When you enter 1/2 of your ss on line B it is not being subtracted from anything. It is being ADDED to ALL your other income to see if any of the ss will be taxable to you.

And look at your return to see how Turbo Tax is figuring the taxable amount on 1040 line 6b. Do you have the full Social Security on line 6a? And nothing on 6b?

Re: Error in Social Security Income

OneDakota — Sat, 01 Feb 2025 19:55:44 GMT

what number did you call. the whole Social Security calculator isn't working right. It is doubling up the amont. When you erase the worksheet and attempt to use the step by step program, that doesn't work at all.

Re: Error in Social Security Income

jabentay — Thu, 20 Mar 2025 02:28:06 GMT

I used the free version of TT. I was surprised to see I was getting over $5k. Then, I knew why. Only 12k of SS were listed as taxable. I rationalized the tax law for SS must have changed.

I wonder if this problem is with the free version only.

Would Intuit even make up for this mistake?

Re: Error in Social Security Income

DaveF1006 — Thu, 20 Mar 2025 14:44:57 GMT

It depends on the amount of your Social Security income in conjunction with your other income. Here's an illustration how your Social Security income is determined.

To determine this, the IRS considers 1/2 of your Social Security income combined with all other income. The thresholds for the combined income is as follows.

If you're single, and your combined income is:

Below $25,000: Benefits are not taxed.
Between $25,000 and $34,000: Up to 50% of benefits may be taxable.
Over $34,000: Up to 85% of benefits may be taxable.

2. If you're Married Filing Jointly, and your combined income is:

Below $32,000: Benefits aren't taxed.
Between $32,000 and $44,000: Up to 50% of benefits may be taxable.
Over $44,000: Up to 85% of benefits may be taxable.

Re: Error in Social Security Income

VolvoGirl — Thu, 20 Mar 2025 17:21:02 GMT

@jabentay If more of you SS was taxable last year you should print out both 2023 & 2024 and compare them line by line to see what all changed. Maybe you'll spot something you left out or entered wrong or entered on the wrong line or typed an amount wrong. Check if you got the right taxable amounts for any 1099R for IRA, 401k and pensions on 1040 lines 4b and 5b.

Re: Error in Social Security Income

wizard_chef — Thu, 15 May 2025 02:38:46 GMT

I just got nailed for a $7,000 tax error in the IRS's favor because of a TurboTax flaw in my return. It incorrectly calculated the tax on my and my wife's social security income. The tax it calculated on my social security income was only a third of the correct amount. This was a painful error in the software. For what is charged for the software, this is inexcusable. Because of my RMDs, I am in a very high tax bracket, and any error like this can be financially painful.