2025
Q1.will turbo tax automatically figure out taxable income that will now be layered due to social security benefits? Yes, TurboTax will calculate your taxable income with social security. This is calculated based on how much other income you have. So, once you enter any income you received from work during the year, any pensions and all other sources of income (including from your spouse if you are married) TurboTax will calculate whether your Social Security is taxable at all or if 50% or 85% is taxable.
depending on your situation, up to 85% of it is taxed.
If you fall into the following, 85% of your social security is taxable income
- Single with income above $34,000
- Married Filing Jointly with income above $44,000
- Married Filing Separate regardless of income
If you fall into the following, 50% of your social security is taxable income
- Single with combined income between $25,000-$34,000
- Married Filing Jointly with combined income between $32,000 and $44,000
Your combined income is calculated by adding your
- AGI plus
- Nontaxable Interest plus
- 1/2 of your social security Benefits
Social Security Benefits Taxes
Q2. I primarily lived in AK in 2025 and all my W2 income was generated from there but because of social security, do I have to pay NE taxes? No. Since you did not start receiving Social Security until 2025, you will not need to pay taxes on your social security you have received there. As of January 1, 2025, NE no longer taxes social security. If however, you are receiving other retirement income such as a pension, this would be taxable in NE for the months you lived in NE and received it. In that situation, you may need to file a return as a part year resident to report your retirement income from other sources.
Q3. can I claim moving expenses? No. Moving Expenses are NOT deductible.
Q4. Are my IRMAA deductions able to be a tax credit? It depends. If you itemize your return, you can claim IRMMA deductions as Medicare premiums which can be deducted as Medical Expenses. Medical expenses are only deductible for the amount that is in excess of 7.5% of your AGI. This means, if your AGI is $50,000, only your total medical expenses that are above $3,750 are deductible. For 2026, when you are self-employed, if you have a profit, you can deduct the IRMMA deductions as self-employed health insurance. The Self-Employed Health Insurance deduction is limited to your earnings. Meaning, you cannot deduct more than you earned. This is also entered in the business expense section.
2026
Q1. . What are the consequences of changing primary residence to my taxes? Alaska (AK) has no state income tax while Nebraska (NE) has a rate that goes up to 5.2% for 2025 . So you will be paying state taxes in NE while you did not in AK.
Q2. How do I find out how to calculate capital gains (I lived in my house 25+ years), especially if I invest proceeds into a new home? Capital gains rates are based on your total income. Since you have lived in your home for more than 2 out of the last 5 years, you would be able to exclude $250,000 ($500,000 if Married Filing Jointly) from the sale amount. The rest is taxed. The capital gains rates for 2025 are as follows based on income. Note: The dollar thresholds do increase yearly.
- Zero percent rate for the following income
- $48.350 for single or MFS
- $64,750 for HOH
- $96,700 for Married Filing Jointly
- Fifteen percent for income more than above but less than below
- $300,000 for MFS
- $533,400 for Single
- $566,700 for Head of Household
- $600,050 for Married Filing Jointly
- Twenty percent for the amount that your taxable income is over the 15% level.
Q3. Can capital gains also be reduced by dollar for dollar payoff of my second home? No. The capital gains that you earn on your sale of first home are not affected by the purchase or payoff of your second home.
Q4. How do I prepare for taxes in NE for 2026? You can use something like QuickBooks to track all of your income and expenses for your business. Keep records of your travel that is business related. Travel that is personal is NOT deductible. See this link for items you can deduct for your business.
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