Social Security was taxed and should not have been?

[mpennin]

Our Social Security was taxed however our other income was < $32,000. We received Tax Credit due to enrolling in the Affordable Care Act. (obama care). Would that affect our Social Security being taxed?

[JamesG1]

I would not expect that to affect the taxable Social Security calculation.  The computation of taxable Social Security is on the Social Security Benefits Worksheet.

You can review the 1040 in TurboTax Online and see the taxable Social Security benefits by following these directions.

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Under Other helpful links, click on View Tax Summary.
• Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
• Down the left side of the screen, click Back to return.

You can print or view your full tax returns prior to filing after you have paid for the software.

• In the left hand-menu, select Tax Tools.
• Select Print Center.
• Then choose Print, save or preview this year’s return.
• Now check the 2020 federal returns (or 2020 state returns) box and choose which forms to print out or all worksheets.
• Select View.

[mpennin]

I have my return printed. So, Social Security benefits for two filling jointly was $37,374. Withdrew a total of $29,500 from 401k which 20% was withheld immediately. ($5900) No more income was included. Should have received back the majority of the $5900 withheld? If so how do I re-do my 2020 tax return to reflect my mistake?

[JamesG1]

I suspect the $29,500 from the 401K made some portion of the Social Security taxable.

Have you already filed or do you just need to enter the 1099-R for the 401K proceeds?

If you have already filed your 2020 Federal tax return and it has been accepted by the IRS, you will have to amend your previously filed tax return.

First, make sure you really need to amend and that your 2020 return was accepted in TurboTax Online or paper-filed through the mail.  You cannot amend a return that has not been filed yet.

1. Sign in to TurboTax.
2. Scroll down to Your tax return & documents (you may need to select Show), select 2020 and then Amend (change) return.
3. Carefully follow the instructions. Don't worry if your refund changes to $0. This is normal on amended returns.
4. When finished, we'll give you instructions for printing and mailing your amended return as amendments can't be e-filed.

To enter the retirement distribution In TurboTax Online,  follow these steps.

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Wages & Income.
• At the screen Wages & Income, scroll down to Retirement Plans.  Click Show more.
• Click Start/Revisit to the right of IRA, 401(K), Pension plan withdrawals (1099-R).
• Answer the interview questions to report the income.