SSA-1099

[MGC94]

Taxpayer (37 years old) and Spouse (39 years old) with 2 dependents (17 and 12 years old) 

Taxpayer has a w2 $35,000

Spouse has SSA-1099 Box 5 red box $22,236 says it is disability payment and doesn't think they have to report it. Do they not have to add this? When I put it in $8,000 of it gets taxed

Each dependent has a SSA-1099 box 5 for $5,402 

Thank you for your help

[IRonMaN]

It gets reported.

[Camp1040]

The dependents ssa-1099 gets reported on their individual returns if they qualify to file a return, they are not added to the parents return.

My $.02

[Just-Lisa-Now-]

If that as all the income they had, therye right, it wouldnt get reported anywhere, but when you get it in addition to other income, its reportable.

The dependents SS income doesn't get reported unless they have other income that gives them a filing requirement.

[Norman2001]

Turn the SSA-1099 over and read the Notice. It has a short worksheet and some other useful information. 

[BobKamman]

That's why they need you to tell them they are wrong.  

[MGC94]

So because the taxpayer has a W2 yes? spouse has no other income. only ss dis 

[Camp1040]

Not just because of the W2 form,they had income earned or otherwise that triggered partial tax on SSI. Social security is, tax-free partially taxable or taxable up to 85% of the Social Security received.

[Camp1040]

Also there are instructions for this sort of situation.

[IRonMaN]

Where is the Pub 72 lady when you could use her? 😜

[MGC94]

taxpayer did. Not the spouse. Spouse only had SS 

[IRonMaN]

It doesn't matter who had it or what the source was on a joint return.  Please read the instructions to see what folks are trying to tell you.

[Just-Lisa-Now-]

On a joint return, ALL the income on the return counts.  That SSA1099 needs to be entered on the return.

[Camp1040]

Pub. 17

[abctax55]

Does ProSeries not have worksheets that show the computations for this situation?  Lacerte does, so all you have to do is drill down to that worksheet to follow the math.  Of course, understanding the concept first "is" rather important.

@MGC94  I know that it was suggested to you that you obtain some basic research material (The Tax Book, or Quickfinder).  BOTH of these have tons of info on the questions you ask; and that's where you should look first for the basics.

[Just-Lisa-Now-]

Yes, the SS worksheet shows the computation if you scroll down from the entry section.

[dd4vols]

@MGC94 , so I come in here tonight for a little respite. and randomly open 2 questions to see if I might be of assistance.   Both of the topics are by you and are at the very very basic level of tax preparation.   I really think you need to take some tax preparation courses 1) for your client's sake, and 2) for your benefit, because I am afraid you are opening yourself up for a load of malpractice suits. JMHO

[taxes96786]

Every W2 or 1099 must be reported. The amount of income and the code in 1099 box 7 determine whether and how much is taxable.

[MGC94]

This is not a 1099-R 

[qbteachmt]

"This is not a 1099-R"

That's right, but so what? There are lots of 1099-(extension) forms that you need to enter, for the combination of events and amounts and the household's information to be able to be taken into account by the program you paid for.

When you enter things in the program, if you question how it is working, you should research it. Did you look up what the IRS tells you, or the SSA?

https://www.irs.gov/faqs/social-security-income/regular-disability-benefits/regular-disability-benef...

https://www.ssa.gov/benefits/retirement/planner/taxes.html

You get and use and keep the reference materials, including these types of bookmark links, because you might find yourself preparing past due returns and need your historic reference for how things were reported in that tax year.

When you lean on your peer preparers for basics, you are expecting them to help in the busiest time of year, for things that are easily found by doing the research. Remember: Dog helps those who help themselves.

[taxes96786]

Thank you for your post. Unfortunately we do have some snarks on this site.

[abctax55]

box 7

Box 7 on  SSA -1099 is the address....