Social Security

[Rjp39]

Does turbo tax calculate any taxes due on my social security income.

[Vanessa A]

Yes, TurboTax will calculate taxes dues on your social security income if there are any.  Generally, if you have no other income, then your social security is not taxable. 

However, depending on your situation, up to 85% of it can be 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

[Rjp39]

Are unemployment payments considered as income.

[LeonardS]

Yes, unemployment benefits are taxable. However, unemployment compensation is not considered “earned” income for qualifying for the earned income tax credit.

[Nan2C]

2021 was my first full year of receiving social security benefits.

After roth conversions in both years my "total income" was very close - 2020 2021. 

I was pleasantly surprised that my tax was 1/3 of what it was in 2020. (just 3 months of SS in 2020)

I used turbo tax premier for both years.  It seemed to figure Social Security & Medicare related quite nicely.

In retirement it is really good to have a plan and to pay attention to all the brackets that affect you!