Spouse retired mid-year, social security benefits are taxed at 85% due to earnings prior to retirement. Is there no way to pro-rate the year?

[mslatter7]

Pre-retirement earnings are used in the calculation of taxable SSI?

[TaxGuyBill · Accepted solution]

No, you can't prorate it.

However, I want to clarify that Social Security is not taxed "at" 85%.  Up to 85% of Social Security is taxed at your regular tax rates.  For example, if you received $10,000 of Social Security, up to $8500 could be taxable.  If you are in the 25% tax bracket, the $8500 of taxable Social Security would result in about $2125 of tax ($8500 x 25%).