Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
vmcintyre25
New Member

My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

I had a deduction from my IRA which was required after I reached 75.  Box 7 on my 1099-R says IRA/SEP/Simple.  Last year I received all of that money, but this year I have to pay $514.00. What happened?  As I stated above, I only increased income by $660.00

1 Best answer

Accepted Solutions
Texas Roger
Level 15

My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

The amount of social security that is taxable up to 85% is dependent on how much other taxable income you had. The taxable amount of your 1099-R in box 2a is considered when determining how much of your social security is taxable. 

View solution in original post

3 Replies
Texas Roger
Level 15

My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

The amount of social security that is taxable up to 85% is dependent on how much other taxable income you had. The taxable amount of your 1099-R in box 2a is considered when determining how much of your social security is taxable. 

vmcintyre25
New Member

My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

You are calculating as my distribution is an early withdrawal.  It is not.  I have the necessary amount sent to me monthly.  Any extra distribution I request has a 10% withholding I requested.
Texas Roger
Level 15

My Social Security Income only increased by $660.00 last year; however my taxes due on SSI increased by $500.00???

Since you were over 59 1/2 when you took the distribution, TurboTax would not calculate the early withdrawal penalty on any distribution. You owe ordinary income tax on the entire amount of a traditional IRA distribution unless you contributed some after tax dollars to the IRA. What amounts are in boxes 1 and 2a of your 1099-R?
Dynamic AdsDynamic Ads
Privacy Settings
v