Hello again needle,
The $32,000 base applies to your total combined income from other sources, other than SS. In other words, in your case you make $46,000. I assume your husband has no job or other income
If he is receiving $23,000 a year in SS benefits, then half of that amount is $11,500. You would deduct the $11,500 from the $32,000 base and the result is $20,500. So $20,500 is what the two of you would be allowed to have in other income combined before any of his taxes became taxable. If your other income exceeds that amount, then a portion of his benefits are taxable. Since your income is $46,000, you do exceed the $20,500 which is allowed.
I just ran the numbers on the worksheet and it looks like $17,475 of his SS benefits will be subject to tax.
You can still use Turbo Tax and should not have any problems. This is a quite common situation and TT will handle the calculations for you easily.
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