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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3756
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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How do you determine the taxable amount of your Soc. Sec.? Another question, how did my M

Resolved Question:

How do you determine the taxable amount of your Soc. Sec.?
Another question, how did my M/C # XXXXX expiration date come up when I have never entered it for you?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

 

NPVAdvisor :

Hi, I can help you with the social security question. (You'll have to contact customer service regarding your card number. We experts are not privy to that information)

NPVAdvisor :

DO you wan to proceed, or would you rather contact customer service

Customer :

I was expecting an accountant, but I suppose a lawyer will know more than I do anyway,

NPVAdvisor :

I am a tax and finance professional not an attorney

NPVAdvisor :

Lets start here:

NPVAdvisor :

No one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules.

Customer :

Oh, ok, the thing that came up saying an attorney was available must have been erroneous. Thank you.

NPVAdvisor :

If you:

  • file a federal tax return as an "individual" and your combined income*is
    • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $34,000, up to 85 percent of your benefits may be taxable.

NPVAdvisor :

file a joint return, and you and your spouse have a combined income* that is

  • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits
  • more than $44,000, up to 85 percent of your benefits may be taxable.

Customer :

Past returns have had less than 20 % as taxable. So where is this worksheet that we are supposed to use?

NPVAdvisor :

just a second

NPVAdvisor :

it's pn page 25 of the instructions or form 1040 ... give me just a minute and I can get a link that will take youright to it

NPVAdvisor :

This should take you to it

NPVAdvisor :

Social Security Benefits Worksheet—Lines 20a and 20b
Before you begin:
ߛ
ߛ
ߛ
ߛ
Keep for Your Records
Complete Form 1040, lines 21 and 23 through 32, if they apply to you.
Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the
instructions for line 36 on page 33).
If you are married filing separately and you lived apart from your spouse for all of 2011,
enter “D” to the right of the word “benefits” on line 20a. If you do not, you may get a math
error notice from the IRS.
Be sure you have read the Exception on page 25 to see if you can use this worksheet
instead of a publication to find out if any of your benefits are taxable.
1. Enter the total amount from box 5 of all your Forms SSA-1099 and
Forms RRB-1099. Also, enter this amount on Form 1040, line 20a . . . . . . 1.
2. Enter one-half of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Combine the amounts from Form 1040, lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19,
and 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the amount, if any, from Form 1040, line 8b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Combine lines 2, 3, and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in
adjustments you entered on the dotted line next to line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Is the amount on line 6 less than the amount on line 5?
No. STOP
None of your social security benefits are taxable. Enter -0- on Form 1040, line
20b.
Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. If you are:
• Married filing jointly, enter $32,000
• Single, head of household, qualifying widow(er), or married filing
separately and you lived apart from your spouse for all of 2011,
enter $25,000
. . . . . . . . . . . . . . 8.
• Married filing separately and you lived with your spouse at any time
in 2011, skip lines 8 through 15; multiply line 7 by 85% (.85) and
enter the result on line 16. Then go to line 17
9. Is the amount on line 8 less than the amount on line 7?
No. STOP None of your social security benefits are taxable. Enter -0- on Form 1040, line
20b. If you are married filing separately and you lived apart from your spouse
for all of 2011, be sure you entered “D” to the right of the word “benefits” on
line 20a.
Yes. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying
widow(er), or married filing separately and you lived apart from your spouse for all of 2011 . . 10.
11. Subtract line 10 from line 9. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Enter one-half of line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Enter the smaller of line 2 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Multiply line 11 by 85% (.85). If line 11 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Multiply line 1 by 85% (.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. Taxable social security benefits. Enter the smaller of line 16 or line 17. Also enter this amount
on Form 1040, line 20b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
TIP If any of your benefits are taxable for 2011 and they include a lump-sum benefit payment that was for an earlier
year, you may be able to reduce the taxable amount. See Pub. 915 for details.

NPVAdvisor :

tried to paste it in for you but the formatting did not come through .. but the link I provided doe take right to a pdf file of page 25, which is the worksheet

Customer :

We are married and filing JOINTLY, not separately, and we are seniors, over 80 yrs.

NPVAdvisor :

What is your total income?

NPVAdvisor :

I can run through it for you

Customer :

That form says it is year 2011. How come my huge book for 2012 doesn't have it? Anyway I appreciate your help and hope you are still there. I printed out the thing when I click on that huge site you sent, then I came back and saw your latest message.

NPVAdvisor :

did you look on page 25?

Customer :

Yes and in my book it is about lines 16 a and b, but page 28 IS about Soc. Sec. lines 20a and b and that is where I saw that I had to use a worksheet in Pub. 590 because I guess I misinterpreted it about IRA. We have distributions monthly on it and had a big amount taken out and put in bank account in Dec. 2012. I am still flummoxed

NPVAdvisor :

Sorry .. look on page 29 for the 2012 version

NPVAdvisor :

As the instructions say before you star putting the numbers in the worksheet (the lines on page 29) you'll have to do a part of the 1040 first

Customer :

Oh, yeah, it is there, but I guess I goofed thinking I couldn't use that and had to go to Pub.590, so are you saying I can just fill out that form on page 29 and then know how much is taxable. Thanks. Please answer me and tell me how I have to approve the $30 charged to my M/C.

NPVAdvisor :

First on your 1040, complete line 21 .... and then 23 through 32 if they apply to you

NPVAdvisor :

yep

NPVAdvisor :

that's it

NPVAdvisor :

just fowwo step by step and you have it

NPVAdvisor :

on the $30, you rate my answer as a 3(ok) or better

Customer :

I already had figured out the other stuff, like IRA distributions and taxable amount. I guess I just have to get back to work and see where I come out. Hope I do as well as my late friend. Thanks and I guess I have to say, go ahead and charge the M/C you already knew the number of. Now, frankly that scares the dickens out of-not that you knew it but apparently everyone anywhere can know it. Ohhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh my. Thanx

NPVAdvisor :

AGain, I'm just one of the experts here ... JustAnswer the company has it, but I don't personally

NPVAdvisor :

All I know is that for me to be paid, you have to either "accept" the answer or rate me as a 3(ok) or better

Customer :

Oh, I didn't mean YOU but I haven't used Just Answer.

NPVAdvisor :

but, again, on the page 29 form just plug through it and you get the number that goes back on the 1040

NPVAdvisor :

I understand

 

Customer :

Oh, Ok, I already had the thought it was $30, but gee, you should get that. Thanks again. I guess now I have to Rate you. Expect 100%, okay?

NPVAdvisor :

By the way, you can bookmark this page (save it as a favorite place in you browser) and come back to and ask for me to clarify anything you need

NPVAdvisor :

Thanks so much .

Customer :

How do I bookmark something. Hey, I'm 87 and not all that up-to-date

NPVAdvisor :

DO you know if you are using internet explorer?

NPVAdvisor :

If so, you just click on the star, while you still have this up

Customer :

If that is IE I guess I do have it. Now how do I bookmark????

NPVAdvisor :

yep

NPVAdvisor :

do you see a star on the right?

Customer :

What star? Where?

NPVAdvisor :

ok hang on let me look, myself ... just a second

NPVAdvisor :

Right-click on a blank portion of the page and click Add to Favorites.

or

  1. Move to the page you wish to add to your Favorites.
  2. At the top of the browser window click Favorites.
  3. Click Add to Favorites.
NPVAdvisor :

i think right clicking your mouse is probably the simplest

NPVAdvisor :

but since you're already her you should see favorites at the top, and you can do that .click favorites and the add to favorites

Lori-Moderator41354.5494236458
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 3756
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 5 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Customer: replied 1 year ago.

Oh, when I thought so highly of the expert, I assumed you would realize that I was extremely happy that he was nice enough to keep on instructing until I got it and I thought he knew I got it. But I have been working on my return every sense and finding out how smart I am now (that’s a joke, but I really got it and I still wish the expert to know that.)Penny XXXXX

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