... Am single. ...
New plan:
2024 int and dividends 30k
2024 Roth conversion 40k
2024 social security 40k
Wondering what amount of the 40 k social security income will be taxable.
Worksheets are available in the publication https://www.irs.gov/pub/irs-pdf/p915.pdf
Referring to the IRS worksheet mentioned by Asyouwish, the Finance Buff says,This calculator may be of assistance:
https://thefinancebuff.com/social-secur ... lator.html
The calculator shows that $34,000 or 85% of the $40,000 SS benefit is taxable. But it doesn't show how that result is arrived at. You can see the steps of the calculation -- but easier than with the IRS worksheet -- in the table below:You can go through the 19 steps in the worksheet to calculate the amount of Social Security benefits that will be taxable but the worksheet isn’t the easiest to use. I made an online calculator that helps you calculate it much more quickly. It only needs three numbers plus your tax filing status. You’ll have your answer with the click of a button.
Code:
Row Col A Col B Formula in Column B 2 Single = 1 / Joint = 2 1 3 Social Security benefit 40,000 4 Other income (including tax exempt) 70,000 5 Relevant income (1/2 SS + Other income) 90,000 =B3/2+B4 6 50% threshold 25,000 =CHOOSE(B2,25000,32000) 7 85% threshold 34,000 =CHOOSE(B2,34000,44000) 8 Relevant income 50% taxable 9,000 =MAX(0,MIN(B5,B7)-B6) 9 Relevant income 85% taxable 56,000 =MAX(0,B5-B7) 10 SS taxable @ 50% 4,500 =50%*MIN(B8,B3) 11 SS taxable @ 85% 29,500 =MIN(85%*B9,85%*B3-B10) 12 Total SS taxable 34,000 =B10+B11 13 % of SS that is taxable 85.0% =B12/B3Code:
Col ACol BSingle = 1 / Joint = 21Social Security benefit40000Other income (including tax exempt)70000Relevant income (1/2 SS + Other income)=B3/2+B450% threshold=CHOOSE(B2,25000,32000)85% threshold=CHOOSE(B2,34000,44000)Relevant income 50% taxable=MAX(0,MIN(B5,B7)-B6)Relevant income 85% taxable=MAX(0,B5-B7)SS taxable @ 50%=50%*MIN(B8,B3)SS taxable @ 85%=MIN(85%*B9,85%*B3-B10)Total SS taxable=B10+B11% of SS that is taxable=B12/B3Other income to reach 50% threshold=B6-B3/2Other income to reach 85% threshold=B7-B3/2Other income to reach 85% of SS max=(0.425*B3+0.5*B6+0.35*B7)/0.85Statistics: Posted by #Cruncher — Tue Sep 03, 2024 12:07 am — Replies 10 — Views 804