Taxable Social Security

[Koss]

Questionguy101 started a really interesting thread about taxable social security.

But the title of his post is very vague, so you might miss it. It's worth reading.

I'll tease everyone with this:

I responded to his question by saying that social security benefits are never taxable if the taxpayer has no other income.

Turns out that this assertion is spectacularly wrong.

It may be very rare, but it is mathematically possible for some social security benefits to be taxable even if there is no other income.

Here's the link to the thread:

http://www.thetaxbook.com/forums/showthread.php?t=19374

BMK

[WhiteOleander]

Yes, it's my understanding that if you file MF separate and you lived with your spouse, then 85% of the benefits become includible into income. Now, if that is the only income and it does not create a filing requirement, then no need to file. But, remember, the filing requirement for MFS is the exemption only. Not the standard deduction plus exemption. So, it's not always easy.

[Koss]

Mfs

Yeah, but even for someone who is single, it is possible for some social security benefits to be taxable even when there is no other income, and that blew me away.

It doesn't happen often. The benefits have to be astronomically high, e.g., lump sum for back years without the election to spread it out, or something like that.

BMK

[Possi]

Claiming a parent

Here's what gets me... if your mother's only income is SS, and none of it is taxable, and you are supporting her, you can probably claim her.

If your mother's only income is a taxable pension or IRA and it is over $3700, you cannot claim her.

What sense does that make?

Or, your qualifying relative's only income is $3701 of unemployment. You can't claim him.

Some things I just don't get.

Or this, hold a kleenex in one hand and one square of toilet paper in the other. Look at it. They sell us the kleenex to blow our noses....... ????

Ok, back to work...

[WhiteOleander]

Well, if the parent receives SS, then it could be difficult to prove over 1/2 support. The benefits do not count for income purposes, but it does count for support purposes.

[Burke]

Questionguy101 started a really interesting thread about taxable social security.
But the title of his post is very vague, so you might miss it. It's worth reading.
I'll tease everyone with this:
I responded to his question by saying that social security benefits are never taxable if the taxpayer has no other income.
Turns out that this assertion is spectacularly wrong.
It may be very rare, but it is mathematically possible for some social security benefits to be taxable even if there is no other income.
Here's the link to the thread:

http://www.thetaxbook.com/forums/showthread.php?t=19374

BMK

I read both threads. Fascinating. That's what I love about taxes. Everybody thinks its about the numbers. Nah, it's the law.

[JG EA]

I have a similar problem with taxable social security this year with a few clients. I tell them they don't have to file next year and give them the filing requirement. It does not count SS. But wait! I did a scenario with MFJ clients with the filing requirement missed but their REGULAR SS would be taxable pushing the client over the filing requirement.