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Taxes on Social Benefits

This not a question, just a statement to be cautious and double check to be sure TT calculated tax on Social Security benefits.  I didn't and was expecting a return,  but IRS discovered an error in TT calculated tax on SS benefits and I now owe IRS.  In checking the SS Benefits Worksheet, the error appeared in the TT calculation on line 17 of the worksheet, (Multiply line 1 85% (0.85)).  Well, in my case the amount TT calculated on line 17 was only 26.5% instead of the full 85%.  So please be cautious and double check your tax on SS  benefits to ensure correctness,

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2 Replies

Taxes on Social Benefits

There is a new question this year asking if you lived in a foreign place.  People have been answering it wrong or skipping it.  Go back through the Social Security entries.  

 

You can go back into your tax return but be very careful not to change anything.  Click on Add a State to let you back into your return.  You should see this screen after you enter your Social Security and hit Continue.  What is checked Yes or No?  

 

SS Foreign.PNG

Taxes on Social Benefits

And it is for each spouse.  So if you have a low amount on 1040 line 6b you might have answered wrong for 1 person.

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