Sunday, August 22, 2010

How does the IRS determine if spouse's SS should be taxed?

add income from all sources except social security,, then add in 1/2 of social security. If the total is more than $32,000. for married couple, part of social security will be taxed. The higher above $32k the more that will be taxed. There are work sheets in form 1040 instructions,, but you may not be able to understand the worksheet.How does the IRS determine if spouse's SS should be taxed?
Taxable SS benefits are calculated by determining the amount of other income including the SS benefits received bay both spouses.





The worksheet in the 1040 instructions shows how it is calculated.





The link below takes you to those instructions.





http://www.irs.gov/pub/irs-pdf/i1040.pdf

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