Seeking to understand why Pralana is calculating my taxable portion of SS Income as shown in attached file.
SS Income = 51,384
Taxable Portion of SS Income = 20,447
Based on my AGI and Filing Status (MFJ), I am expecting to see the Taxable Portion of SS Income to be 85% of SS Income. In other words,
Taxable Portion of SS Income = 51,384 * 085 = 43,676
Does anyone have any insight as to why Pralana Online is calculating 20,447 ?
@elbo2022 Sure. The formula isn't simply SSI x .85. It's min(0.85*SSI, max(0,0.85 *(your combined income - 44,000)) + min(0.5*SSI, 0.5 *min(your combined income -32,000, 12,000))), where your combined income = SSI/2 + other income. I think the thing you're missing is that the term for calculating your combined income actually only includes HALF of your SSI.
Stuart
