390% increase in taxable SS income

[lynn26]

Form 1040 SR Lines 6a & 6b combined SS income (Married/Joint both born before jan 2, 1959):
— In 2022 the amount shown on 6a was $38.1k and the amount shown in 6b was $5.0k (both rounded).
— In 2023 the amount shown on 6a was $41.5k and the amount shown in 6b is $16.4k (both rounded).
— With an increase of $3.4k from year to year (COLA increase), why is the taxable amount increased from $5.0k to $16.4k?
— An income increase of $3.4k in SS payments results in an increase of $11.4k in taxable SS income?
— A 390% increase in taxable SS income? How is that possible?

[AnnetteB6 · Accepted solution]

It is possible because the amount of Social Security benefits that is taxable does not depend only on the Social Security benefits themselves.  If you had an increase in your other categories of income, then the percentage of taxable Social Security would be affected.

There is a worksheet that is included as part of your tax return where the taxable portion of your Social Security is determined.  It is called the Social Security Benefits Worksheet.  You can find it printed as part of your return if you choose to print or preview your return and all worksheets.

To learn more, take a look at the following TurboTax help article:

Why did the taxable amount of my Social Security benefits change so much from last year?
 

[lynn26]

Thanks very much for your information, we'll follow your advice.