In doing my taxes for 2006 with TaxAct, I learn to my horror that our (married, filing jointly) taxable social security income is double that of 2005. What happened?
I did have a larger capital gain (12,000 vs 2,000). Is that why? Or did I miss something?
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Yep.
TaxACT has the equivalent of the paper version of the Taxable SS Worksheet. See what it shows, then pull up last year's return in TA2005 and see what the worksheet shows there, if you want to see the details.
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
Increased income in any form is liable to increase the portion of SSI that is taxable.
Yes, of course that's why. The magic of software and computers doing our math has created ignorance of the "process" itself. When your total income increases, then the Social Security exposed to taxes goes up -- until it reaches 85% of the total. When we did these things on paper, we were painfully led through the process and were always aware of the consequences. But your increase in total income has inevitably caused the taxable amount of your Social Security to increase. Bill
ed
Thanks everybody.
Horrors should be confined to movies. I hate seeing them on my tax return.
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