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kurt2
New Member

Combined SS box 5=33,276 for Married, filing Jointly. Other income is 290. Medicare premiums were 1608. 1040 5b=s 0. Are medicare premiums deducted b4 txable calculated?

 
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IreneS
Intuit Alumni

Combined SS box 5=33,276 for Married, filing Jointly. Other income is 290. Medicare premiums were 1608. 1040 5b=s 0. Are medicare premiums deducted b4 txable calculated?

No - Medicare premiums are NOT deducted before the taxable amount of your Social Security benefits are calculated.

The amount reported in Box 5 is used to calculate the taxable amount of your Social Security benefits (before subtracting Medicare premiums).  The Medicare payments will flow to Schedule A (itemized deductions) as health insurance premiums.


Whether your Social Security benefits are taxable depends on how much other income you have.  Here’s a quick way to find out if you have to pay taxes on your Social Security benefits: Add one-half of the Social Security income to all other income, including tax-exempt interest. Then compare that amount to the base amount for your filing status. If the total is more than the base amount, some of your benefits may be taxable.

  • Base Amounts. The three base amounts are:
    • $25,000 – if taxpayers  are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from their spouse for all of 2016
    • $32,000 – if they are married filing jointly
    • $0 – if they are married filing separately and lived with their spouse at any time during the year

IRS to help you fully answer the question. Click here: Are my Social Security Benefits Taxable

In your case:  1/2 of SS benefits (16,638) + 290 is less than $32,000 so none of your Social Security benefits are taxable.




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1 Reply
IreneS
Intuit Alumni

Combined SS box 5=33,276 for Married, filing Jointly. Other income is 290. Medicare premiums were 1608. 1040 5b=s 0. Are medicare premiums deducted b4 txable calculated?

No - Medicare premiums are NOT deducted before the taxable amount of your Social Security benefits are calculated.

The amount reported in Box 5 is used to calculate the taxable amount of your Social Security benefits (before subtracting Medicare premiums).  The Medicare payments will flow to Schedule A (itemized deductions) as health insurance premiums.


Whether your Social Security benefits are taxable depends on how much other income you have.  Here’s a quick way to find out if you have to pay taxes on your Social Security benefits: Add one-half of the Social Security income to all other income, including tax-exempt interest. Then compare that amount to the base amount for your filing status. If the total is more than the base amount, some of your benefits may be taxable.

  • Base Amounts. The three base amounts are:
    • $25,000 – if taxpayers  are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from their spouse for all of 2016
    • $32,000 – if they are married filing jointly
    • $0 – if they are married filing separately and lived with their spouse at any time during the year

IRS to help you fully answer the question. Click here: Are my Social Security Benefits Taxable

In your case:  1/2 of SS benefits (16,638) + 290 is less than $32,000 so none of your Social Security benefits are taxable.




**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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