We have $56,000 on 2 SSA-1099s and yet turbotax says we own $0???

[bophoo]

I have 2 SSA-1099 forms for myself and wife, along with an $ 800 payout from a profit sharing which I started this year.  When it was all entered into TurboTax it shows Tax due of $ 0.  Did I mess up?

[DoninGA · Accepted solution]

No you did not mess up.  That would be correct since you only have a small amount of taxable income.

Social Security Retirement/Disability/Survivors benefits are reported on a form SSA-1099 and the benefits received are reported on a federal tax return.  The benefits may be taxable depending on the amount of other income you have entered on your tax return.

However, if the Social Security benefits are the Only income to be reported on the tax return and there are no federal taxes withheld from the benefits, then there is no reason or need to file a tax return.

Up to 85% of Social Security Retirement/Disability/Survivors benefits 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