How Can We Determine Whether Or Not We Should File Amended Tax Returns?

Feb 14 2018 - 7:11am

Hi. My wife has a peculiar problem. She is an ordained clergy, and is able to claim housing expenses as non-taxable. We have done this for many years never knowing this might affect her SSA payments. We only tumbled to this issue when her pension fund estimated her SSA benefit $500 a month higher than SSA does. We contacted our accountant, and he said we could refile for 2015 and 16, However, we'd have to pay the tax, which is not insubstantial. We are looking for a calculator that will help us decide if it is worth going back and refiling. Suggestions?
Thanks, Dennis

Hi Dennis,

Our maximization software would permit you to calculate your wife's potential Social Security benefit rate with and without the additional earnings, however, it wouldn't calculate the amount of additional any taxes or penalties that might owe. By the way, assuming that you file your taxes based the normal calendar year, in addition to 2017, 2016 & 2015 you should also be able to amend your 2014 tax return until April 15th of 2018 (https://secure.ssa.gov/apps10/poms.nsf/lnx/0302201001).

Best, Jerry