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I am figuring separate returns for my clients (and joint returns). It is not doing the 85% taxable.
Has something changed for 2025?
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If they live together have you indicated that in the software?
The more I know the more I don’t know.
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Yes, I did. I just figured it both ways. Joint is better because separate won't give the $12,000 senior deduction for both of them (over 65). Their total income is $123, 460 with social security totaling $70,800.
IRA's and pensions total $67,443. 85% of the social security equals $60,180 but their taxable social security is $56,017. I looked at the social security worksheet and it has the correct figures, but usually with income that high, it figures 85%. That is what I am concerned about.
Thank you for your time.
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@Debst99 wrote:
IRA's and pensions total $67,443. 85% of the social security equals $60,180 but their taxable social security is $56,017.
Are all IRAs and pensions in one person's name?
If the one return doesn't have other income (or only has extremely minimal income), a lower percentage of the Social Security is taxed. With zero other income, only 42.5% of the Social Security is taxable (but it VERY quickly goes up if there is other income).
