What is excluded social security income
Hello to all,
I was reviewing a book ( a concise guide to tAxes in retirement by Bruce Larsen. 2016 edition) . At the beginning several examples were given about a married filed jointly couple and what their taxes would be for their situation of income and social security. After they listed joint social security incomes they listed a “excluded social security” amount which they subtracted from the former . For example:
Joint social security. 65230.00
Excluded social security. (55137.25)
Taxable social security. 10092.75
I googled “ exclusive social security. ” It doesn’t seem to apply to the normal retiree. Maybe if you were self employed and paid employee healthcare premiums or a listing of other things. I was surprised to see it in the book since it seems to apply only to business related items and not the average retiree.
Can anyone explain what excluded social security is and why it would appear in the beginning of an elementary guide to taxes for retirees?