Social Security

Forum|Forum|6 years ago
July 24, 2020
2 replies
27 views

I receive Social Security and I have it taxed at 7%. When I do my taxes it adds another $3000+ to my taxes owed which is an additional 12+%of what I received. Why should it affect it that way or am I doing something incorrectly?

Texas Roger

Level 15

If you had federal income tax withheld from your social security benefits, you enter that withholding on your tax return when you enter the SSA-1099. You are taxed on up to 85% of your social security income at your marginal tax rate whatever that rate is. If it's 12%, that is the rate you will be taxed on up to 85% of your social security income. You will get a credit on your tax return for the 7% withholding which is on 100% of your social security income.

VolvoGirl

Level 15

2019 1040 line 5b is the taxable part of Social Security.

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 program you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.