Why does my (AGI + 1/2 of SS income) minus $25,000 deduction not agree with Turbo tax amount for SS tax due?

[AnnetteB6 · Accepted solution]

If you are trying to determine how TurboTax calculated the amount of your Social Security income is taxable, your formula is not quite the same as the guidance given by the Social Security Administration.  

First, take a look at your Adjusted Gross Income (AGI) on your return.  Add your AGI and any non-taxable interest and one-half of your Social Security.  This is your combined income.  

If your filing status is Single or Head of Household and your combined income is:

• Less than $25,000 then none of your Social Security is taxable
• Between $25,000 and $34,000 then up to 50% is taxable
• Greater than $34,000 then up to 85% is taxable

If your filing status is Married Filing Joint and your combined income is:

• Less than $32,000 the none of your Social Security is taxable
• Between $32,000 and $44,000 then up to 50% is taxable
• Greater than $44,000 then up to 85% is taxable

If your filing status is Married Filing Separate, then your Social Security is taxable.

Here is a link to the Social Security Administration website that will give you some good information about what amount of your Social Security benefits may be taxable:  Benefits Planner - Income Taxes and your Social Security Benefit

Also note that if your benefits included a lump sum payment for prior years, then the calculation is much more complicated than stated here.