Pension used to determine what amount of social security to tax

Forum|Forum|2 years ago
February 14, 2024
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Hello, I'm doing taxes for an 86 year old lady who had $14,000 in pension distributions (code 7) and that $14k was added to half her social security and caused $2000 of her social security to be taxed. Everything I read says pension is not considered income for that purpose. It is a standard distribution from a pension, nothing fancy. I get she has to pay taxes on the $14k but why is it in the social security tax calculation?

DoninGA

Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

Married Filing Jointly - $32,000
Single or Head of Household - $25,000
Married Filing Separately - 0

RonnellAuthor

Correct BUT pension is not to be included in that other income per social security admin.

DoninGA

Pension income is taxable on a federal tax return. It is included in the calculation for determining the taxable amount of the SS benefits.

I have been retired and receiving pension income for 20 years and have been receiving SS benefits for 13 years. The SS benefits being received are being taxed appropriately,

You will need to provide link to the Social Security Administration website where they indicate that pension income is not to be included in the calculation for the taxability of the benefits received.