social security benefits

[GWIZ9]

I am filing jointly and my wife and I had 72188 in ss benefits with 11672 total in other income. the social security worksheet in turbo tax shows that only 9201 of our social security is taxable. Does this sound reasonable. When I research how social sec is  taxed they say that if 1/2 of your social security plus all your other income is greater than 44,000 you should expect to have 85% of social security benefits taxed if less than 44000 then it would be 50%. Half my social security plus the total of my other income comes to 47766 but worksheet shows only  9201 is taxable which is approx 12% of my total social security payments

[VolvoGirl]

Turbo Tax should be right.   You can try filling out the IRS worksheet by hand an see what you come up with.

IRS Pub. 915 on Social Security.  There is a blank worksheet on page 16.

https://www.irs.gov/pub/irs-pdf/p915.pdf

[xmasbaby0]

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit was $16,920 —for 2018 it was $17,040—for 2019 it was $17,640— for 2020 it is $18,240; for 2021 it is $18,960,  (For 2022 it will be $19,560) After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2021 Form 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Some additional information:  There are 13 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.  These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

[GWIZ9]

I understand your reply and my 1040 shows that 9201 of ss is taxable. I was just concerned that the amount seemed very low when I see explanations of taxable social security that show 85% is taxable if your total income other than ss plus 1/2 of your social security is greater than 44000 and my total income other than social security plus 1/2 my social security benefit is 47766 but the 9201 which is shows is taxable is only 12% of my total social security benefits

[GWIZ9]

Thanks I will try that. I just dont want the IRS after me for under reporting my income

[xmasbaby0]

You might be missing the key words --   " UP to 85% of your Social Security can be taxable...."    The highest possible  percentage of 85 % is not always used.   It depends on how much other income you had.

[GWIZ9]

Turbotax appears to be correct after checking with manual completion of form.