Significant Decrease in Social Security Income Taxable Amount

[auntiemingle]

Why is my social security taxable amount significantly lower in 2024 than 2023? I was taxed at 55% last year and 43% this year. There was not a significant change in my income, nor any other tax status.

[VolvoGirl]

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

[SharonD007]

We can't tell you why your taxable amount of your Social Security income is lower this year without reviewing your entries, and we can't do that in this forum.  

If you are single and made between $25,000 and $34,000 last year, up to 50% of your Social Security is taxable.  If you made more than $34,000, you'll pay taxes on up to 85% of your Social Security. When you enter all of your income, TurboTax will calculate the taxable portion of your Social Security.

Refer to the TurboTax Help articles A Guide to Social Security Tax and  Is my Social Security income taxable?, How does receiving Social Security affect my taxes?

[Lars6]

I can't reply lto your circumstances but I can tell you that Turbo screwed up my taxable SS income too, making it much lower than it should have been. I think they have a major problem on their hands with this issue yet they refuse to talk about it or confront it. 

[DoninGA]

@Lars6 Click on Forms.  When in Forms mode, open the Social Security Benefits Worksheet.  Follow the calculations Lines 1 thru 20.

[Lars6]

Thanks DoninGA but the IRS already amended my return and increased my tax liability. TurboTax screwed up. They inexplicably put my SS taxable income at 65 percent instead of 85 percent. Not sure what else to say. 

[DoninGA]

@Lars6 Ok...Although I find this extremely odd.  I have been collecting SS for the past 14 years along with other income.  Used TurboTax for all of those years and never once had a problem with taxable SS benefits being incorrect.

[Lars6]

Thanks for the response. That's good to know going forward. But they messed up my return and I've noticed scattered people complaining about the same thing.

[KeshaH]

I'd like to get a diagnostic copy of your return so that we can see exactly what happened and possibly open an investigation into why your social security income was not properly reported on your return. The diagnostic copy will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states, if any, that are included on the return.

@Lars6 @auntiemingle 

[Lars6]

Thank you KeshaH. However, I am unable to get into my return, or see anything that says Tax Tools. Is that because my return is completed and filed? Please let me know if there's another way to access this diagnostic tool. Thanks. 

[DoninGA]

@Lars6 

To access your current or prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/

When you sign onto your online account and land on the Tax Home web page, scroll down and click on Add a state. 

This will take you back to the 2024 online tax return.  The Tax Tools link should be visible on the left side of the online program screen.

[Lars6]

Now that is good information! Thanks.

[Lars6]

KeshaH -- Thanks to Don, I submitted the diagnostic file for study. Hope I will be kept informed of what you learn.

[KeshaH]

Sorry about that, you're correct that after you've filed it's a little bit different process to get into your return to get the diagnostic file.

When you log into your account, on your tax home page please scroll down to Your tax returns and documents. You can open your return but clicking on Add a state or Amend using TurboTax Online. You don't need to actually amend the return or add a state return, this will just open up the return so you can access your Tax Tools. After you get the return open, you can follow the instructions above to send your file to us and get a token.

@Lars6 

[KeshaH]

My screen hadn't refreshed so I didn't realize you were able to figure it out. Great! The last step would just to be to post your token so that we can access the file and take a look at what's going on in the return.

@Lars6