How to determine SS taxable amount

[robbie2205]

I have a SSA-1099,Benefits paid in 2019= $31,744.80 (Box#5)

Box #4 Benefit Repaid =None, Part B Premiums Deducted = $5,200.80. Prescription Drug Part D Deducted = $850.80, Federal Tax withheld = $3,584.40.

??? On My 1040-SR Form,

Block#5a shows my SS Benefits ( $31,745 )

Block 5b shows a the taxable amount  of $14,801.

How did turbo tax arrive at that taxable amount,when my total SS benefit was $31,745.00, and most importantly is the amount correct.

Thank You

Richard

[xmasbaby0 · Accepted solution]

We cannot see your screen or your tax return, so we do not know what other income you entered besides the Social Security.  When you have other income in addition to SS, up to 85% of the SS can be taxable.  The software uses all of theIRS rules to calculate how much of your SS was taxable---you just have to enter your SSA1099 exactly as it appears and let the software do the calculations.

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