social security

Forum|Forum|5 years ago
February 2, 2021
3 replies
15 views

why does the IRS free file version consider all my social security benefits taxable? my social security benefit is NOT taxable...... because you consider it taxable it puts my AGI over the allowable amount for this free filing....

please explain or direct me on how to correct this on the online tax filing

RayW7

Level 12

Not everyone has to pay taxes on their Social Security benefits

To see if your Social Security will be taxed, you have to look at your combined income and your marital status. “Combined income” in relation to social security income is Adjusted Gross Income plus nontaxable interest plus 1/2 of social security benefits.

If you’re already receiving Social Security benefits, you can use your SSA-1099 form (Social Security Benefit Statement) to determine how much of your benefits are taxable. You should receive it in January and should have the information required for the previous year.

When you file taxes, you’ll need this form, so keep it in a safe place! But don’t worry about figuring how much of your social security income is taxable. TurboTax asks you simple questions and makes the behind the scenes calculations to figure out if your social security income is taxable based on your income entries.

If you’re single and your total combined income for the year is between $25,000 and $34,000, then up to 50% of your benefits can be taxed.
If you’re single and your total combined income for the year is greater than $34,000, then up to 85% of your benefits can be taxed.
If you’re married filing jointly and your total combined income for the year is between $32,000 and $44,000, then up to 50% of your benefits can be taxed.
If you’re married filing jointly and your total combined income for the year is greater than $44,000, then up to 85% of your benefits can be taxed.

fparmani

Level 2

the worksheet on the back of SSA 1099: Line C instructions: "Enter your total income that is taxable excluding line A. In my case, thats $10, 914.00. Half my SS benefits are $7600 which gives me $18514.00. Why am I paying tax on my SS? Is it because I'm filing as Married filing seperately?

gloriah5200

Level 10

Yes. The married filing separate filing status causes up to 85% of your social security to be taxable, because at mfs filing status, your "social security base amount" is $0.