Some taxpayers have to pay federal income tax on their Social Security benefits. This usually happens when the taxpayer has other substantial income such as wages, self-employment, interest, dividends, or any other taxable income in addition to their Social Security benefits. Taxpayers will receive a Form SSA-1099 showing the amount of benefits they received for the previous year.
The Social Security Benefits worksheet is used to determine the amount of social security income that is taxable. To enter Social Security Benefits in Keystone Tax Solutions, from the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- Social Security Benefits (1099-SSA, RRB-1099)
- Select the Individual receiving the benefits
- Enter the Net Social Security Benefits from Box 5 from Form SSA-1099
- Enter Federal Tax Withheld from Box 6
When exiting the Social Security menu, the Social Security Benefits worksheet will be displayed on the screen showing the amount of taxable social security income.
NOTE: This is a guide on entering Form 1099-SSA into Keystone Tax Solutions. This is not intended as tax advice.