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Filing Form 1040ez

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Filing Form 1040ez

Filing form 1040ez Publication 915 - Main Content Table of Contents Are Any of Your Benefits Taxable?Worksheet A. Filing form 1040ez Exemption from withholding. Filing form 1040ez How To Report Your Benefits How Much Is Taxable?Examples Lump-Sum ElectionExample Deductions Related to Your BenefitsRepayments More Than Gross Benefits Worksheets AppendixForm SSA-1099, Social Security Benefit Statement 2013 Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Form RRB-1099, Payments by the Railroad Retirement Board 2013 Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) How To Get Tax HelpLow Income Taxpayer Clinics Are Any of Your Benefits Taxable? To find out whether any of your benefits shown on Forms SSA-1099 and RRB-1099 may be taxable, compare the base amount (explained later) for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Filing form 1040ez When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Filing form 1040ez S. Filing form 1040ez savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned by bona fide residents of American Samoa or Puerto Rico. Filing form 1040ez Children's benefits. Filing form 1040ez   The rules in this publication apply to benefits received by children. Filing form 1040ez See Who is taxed , later. Filing form 1040ez The SSA issues Form SSA-1099 and Form SSA-1042S. Filing form 1040ez The RRB issues Form RRB-1099 and Form RRB-1042S. Filing form 1040ez These forms (tax statements) report the amounts paid and repaid, and taxes withheld for a tax year. Filing form 1040ez You may receive more than one of these forms for the same tax year. Filing form 1040ez See the Appendix at the end of this publication for more information. Filing form 1040ez Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. Filing form 1040ez The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is an error in the original. Filing form 1040ez A corrected Form RRB-1099 or Form RRB-1042S is indicated as “CORRECTED” and replaces the corresponding original Form RRB-1099 or Form RRB-1042S. Filing form 1040ez You must use the latest corrected Form RRB-1099 or Form RRB-1042S you received and any original Form RRB-1099 or Form RRB-1042S that the RRB has not corrected when you determine what amounts to report on your tax return. Filing form 1040ez Figuring total income. Filing form 1040ez   To figure the total of one-half of your benefits plus your other income, use Worksheet A, discussed later. Filing form 1040ez If the total is more than your base amount, part of your benefits may be taxable. Filing form 1040ez   If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Filing form 1040ez Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Filing form 1040ez If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Filing form 1040ez If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Filing form 1040ez Base amount. Filing form 1040ez   Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Filing form 1040ez Worksheet A. Filing form 1040ez   You can use Worksheet A to figure the amount of income to compare with your base amount. Filing form 1040ez This is a quick way to check whether some of your benefits may be taxable. Filing form 1040ez     Worksheet A. Filing form 1040ez A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. Filing form 1040ez Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Filing form 1040ez Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Filing form 1040ez (If you received more than one form, combine the amounts from box 5 and enter the total. Filing form 1040ez ) A. Filing form 1040ez   Note. Filing form 1040ez If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Filing form 1040ez B. Filing form 1040ez Enter one-half of the amount on line A B. Filing form 1040ez   C. Filing form 1040ez Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Filing form 1040ez   D. Filing form 1040ez Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Filing form 1040ez   E. Filing form 1040ez Add lines B, C, and D E. Filing form 1040ez   Note. Filing form 1040ez Compare the amount on line E to your base amount for your filing status. Filing form 1040ez If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Filing form 1040ez If the amount on line E is more than your base amount, some of your benefits may be taxable. Filing form 1040ez You need to complete Worksheet 1, shown later. Filing form 1040ez If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits . Filing form 1040ez   Example. Filing form 1040ez You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Filing form 1040ez In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Filing form 1040ez Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Filing form 1040ez You also received a taxable pension of $22,800 and interest income of $500. Filing form 1040ez You did not have any tax-exempt interest income. Filing form 1040ez Your benefits are not taxable for 2013 because your income, as figured in Worksheet A below, is not more than your base amount ($32,000) for married filing jointly. Filing form 1040ez   Even though none of your benefits are taxable, you must file a return for 2013 because your taxable gross income ($23,300) exceeds the minimum filing requirement amount for your filing status. Filing form 1040ez     Filled-in Worksheet A. Filing form 1040ez A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. Filing form 1040ez Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Filing form 1040ez Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Filing form 1040ez (If you received more than one form, combine the amounts from box 5 and enter the total. Filing form 1040ez ) A. Filing form 1040ez $11,000 Note. Filing form 1040ez If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Filing form 1040ez B. Filing form 1040ez Enter one-half of the amount on line A B. Filing form 1040ez 5,500 C. Filing form 1040ez Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Filing form 1040ez 23,300 D. Filing form 1040ez Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Filing form 1040ez -0- E. Filing form 1040ez Add lines B, C, and D E. Filing form 1040ez $28,800 Note. Filing form 1040ez Compare the amount on line E to your base amount for your filing status. Filing form 1040ez If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Filing form 1040ez If the amount on line E is more than your base amount, some of your benefits may be taxable. Filing form 1040ez You need to complete Worksheet 1, shown later. Filing form 1040ez If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits . Filing form 1040ez   Who is taxed. Filing form 1040ez   Benefits are included in the taxable income (to the extent they are taxable) of the person who has the legal right to receive the benefits. Filing form 1040ez For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxable to you. Filing form 1040ez One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child. Filing form 1040ez Repayment of benefits. Filing form 1040ez   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Filing form 1040ez It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Filing form 1040ez If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Filing form 1040ez   Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Filing form 1040ez Your repayments are shown in box 4. Filing form 1040ez The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Filing form 1040ez Use the amount in box 5 to figure whether any of your benefits are taxable. Filing form 1040ez Example. Filing form 1040ez In 2012, you received $3,000 in social security benefits, and in 2013 you received $2,700. Filing form 1040ez In March 2013, SSA notified you that you should have received only $2,500 in benefits in 2012. Filing form 1040ez During 2013, you repaid $500 to SSA. Filing form 1040ez The Form SSA-1099 you received for 2013 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). Filing form 1040ez The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500). Filing form 1040ez Tax withholding and estimated tax. Filing form 1040ez   You can choose to have federal income tax withheld from your social security benefits and/or the SSEB portion of your tier 1 railroad retirement benefits. Filing form 1040ez If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Statement. Filing form 1040ez   If you do not choose to have income tax withheld, you may have to request additional withholding from other income or pay estimated tax during the year. Filing form 1040ez For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. Filing form 1040ez U. Filing form 1040ez S. Filing form 1040ez citizens residing abroad. Filing form 1040ez   U. Filing form 1040ez S. Filing form 1040ez citizens who are residents of the following countries are exempt from U. Filing form 1040ez S. Filing form 1040ez tax on their benefits. Filing form 1040ez Canada. Filing form 1040ez Egypt. Filing form 1040ez Germany. Filing form 1040ez Ireland. Filing form 1040ez Israel. Filing form 1040ez Italy. Filing form 1040ez (You must also be a citizen of Italy for the exemption to apply. Filing form 1040ez ) Romania. Filing form 1040ez United Kingdom. Filing form 1040ez   The SSA will not withhold U. Filing form 1040ez S. Filing form 1040ez tax from your benefits if you are a U. Filing form 1040ez S. Filing form 1040ez citizen. Filing form 1040ez   The RRB will withhold U. Filing form 1040ez S. Filing form 1040ez tax from your benefits unless you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency information. Filing form 1040ez If you do not file Form RRB-1001, the RRB will consider you a nonresident alien and withhold tax from your railroad retirement benefits at a 30% rate. Filing form 1040ez Contact the RRB to get this form. Filing form 1040ez Lawful permanent residents. Filing form 1040ez   For U. Filing form 1040ez S. Filing form 1040ez income tax purposes, lawful permanent residents (green card holders) are considered resident aliens until their lawful permanent resident status under the immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Filing form 1040ez Social security benefits paid to a green card holder are not subject to 30% withholding. Filing form 1040ez If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. Filing form 1040ez SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Filing form 1040ez If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. Filing form 1040ez You must also attach the following information to your Form 1040 or 1040A: A copy of the Form SSA-1042S, Social Security Benefit Statement, A copy of the “green card,” and A signed declaration that includes the following statements:    “The SSA should not have withheld federal income tax from my social security benefits because I am a U. Filing form 1040ez S. Filing form 1040ez lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Filing form 1040ez I am filing a U. Filing form 1040ez S. Filing form 1040ez income tax return for the tax year as a resident alien reporting all of my worldwide income. Filing form 1040ez I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien. Filing form 1040ez ” Nonresident aliens. Filing form 1040ez   A nonresident alien is an individual who is not a citizen or resident of the United States. Filing form 1040ez If you are a nonresident alien, the rules discussed in this publication do not apply to you. Filing form 1040ez Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. Filing form 1040ez You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. Filing form 1040ez These forms will also show the tax rate and the amount of tax withheld from your benefits. Filing form 1040ez   Under tax treaties with the following countries, residents of these countries are exempt from U. Filing form 1040ez S. Filing form 1040ez tax on their benefits. Filing form 1040ez Canada. Filing form 1040ez Egypt. Filing form 1040ez Germany. Filing form 1040ez Ireland. Filing form 1040ez Israel. Filing form 1040ez Italy. Filing form 1040ez Japan. Filing form 1040ez Romania. Filing form 1040ez United Kingdom. Filing form 1040ez   Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U. Filing form 1040ez S. Filing form 1040ez tax if the benefits are for services performed for the United States, its subdivisions, or local government authorities. Filing form 1040ez   If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate. Filing form 1040ez   For more information on whether you are a nonresident alien, see Publication 519, U. Filing form 1040ez S. Filing form 1040ez Tax Guide for Aliens. Filing form 1040ez Exemption from withholding. Filing form 1040ez   If your social security benefits are exempt from tax because you are a resident of one of the treaty countries listed, the SSA will not withhold U. Filing form 1040ez S. Filing form 1040ez tax from your benefits. Filing form 1040ez   If your railroad retirement benefits are exempt from tax because you are a resident of one of the treaty countries listed, you can claim an exemption from withholding by filing Form RRB-1001 with the RRB. Filing form 1040ez Contact the RRB to get this form. Filing form 1040ez Canadian or German social security benefits paid to U. Filing form 1040ez S. Filing form 1040ez residents. Filing form 1040ez   Under income tax treaties with Canada and Germany, social security benefits paid by those countries to U. Filing form 1040ez S. Filing form 1040ez residents are treated for U. Filing form 1040ez S. Filing form 1040ez income tax purposes as if they were paid under the social security legislation of the United States. Filing form 1040ez If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1, shown later. Filing form 1040ez How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Filing form 1040ez You cannot use Form 1040EZ. Filing form 1040ez Reporting on Form 1040. Filing form 1040ez   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 20a and the taxable part on line 20b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Filing form 1040ez Reporting on Form 1040A. Filing form 1040ez   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 14a and the taxable part on line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Filing form 1040ez Benefits not taxable. Filing form 1040ez   If you are filing Form 1040EZ, do not report any benefits on your tax return. Filing form 1040ez If you are filing Form 1040 or Form 1040A, report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez How Much Is Taxable? If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits and other income. Filing form 1040ez Generally, the higher that total amount, the greater the taxable part of your benefits. Filing form 1040ez Maximum taxable part. Filing form 1040ez   Generally, up to 50% of your benefits will be taxable. Filing form 1040ez However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Filing form 1040ez The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Filing form 1040ez You are married filing separately and lived with your spouse at any time during 2013. Filing form 1040ez Which worksheet to use. Filing form 1040ez   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. Filing form 1040ez You can use either that worksheet or Worksheet 1 in this publication, unless any of the following situations applies to you. Filing form 1040ez You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Filing form 1040ez In this situation you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Filing form 1040ez Situation (1) does not apply and you take an exclusion for interest from qualified U. Filing form 1040ez S. Filing form 1040ez savings bonds (Form 8815), for adoption benefits (Form 8839), for foreign earned income or housing (Form 2555 or Form 2555-EZ), or for income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Filing form 1040ez In this situation, you must use Worksheet 1 in this publication to figure your taxable benefits. Filing form 1040ez You received a lump-sum payment for an earlier year. Filing form 1040ez In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in this publication. Filing form 1040ez See Lump-Sum Election , later. Filing form 1040ez Examples A few examples you can use as a guide to figure the taxable part of your benefits follow. Filing form 1040ez Filled-in Worksheet 1. Filing form 1040ez Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Filing form 1040ez None of your benefits are taxable for 2013. Filing form 1040ez For more information, see Repayments More Than Gross Benefits . Filing form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Filing form 1040ez S. Filing form 1040ez Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Filing form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Filing form 1040ez 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Filing form 1040ez $5,980         2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez 2,990     3. Filing form 1040ez Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Filing form 1040ez 28,990     4. Filing form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Filing form 1040ez -0-     5. Filing form 1040ez Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Filing form 1040ez -0-     6. Filing form 1040ez Combine lines 2, 3, 4, and 5 6. Filing form 1040ez 31,980     7. Filing form 1040ez Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing form 1040ez  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Filing form 1040ez -0-     8. Filing form 1040ez Is the amount on line 7 less than the amount on line 6?             No. Filing form 1040ez None of your social security benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez 31,980     9. Filing form 1040ez If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Filing form 1040ez 25,000       Note. Filing form 1040ez If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 9 less than the amount on line 8?             No. Filing form 1040ez None of your benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez 6,980     11. Filing form 1040ez Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Filing form 1040ez 9,000     12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez -0-     13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez 6,980     14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez 3,490     15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez 2,990     16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez -0-     17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez 2,990     18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez 5,083     19. Filing form 1040ez Taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18. Filing form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Filing form 1040ez $2,990       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Filing form 1040ez         Example 1. Filing form 1040ez George White is single and files Form 1040 for 2013. Filing form 1040ez In addition to receiving social security payments, he received a fully taxable pension of $18,600, wages from a part-time job of $9,400, and taxable interest income of $990, for a total of $28,990. Filing form 1040ez He received a Form SSA-1099 in January 2014 that shows his net social security benefits of $5,980 in box 5. Filing form 1040ez   To figure his taxable benefits, George completes Worksheet 1, shown below. Filing form 1040ez On line 20a of his Form 1040, George enters his net benefits of $5,980. Filing form 1040ez On line 20b, he enters his taxable benefits of $2,990. Filing form 1040ez Example 2. Filing form 1040ez Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Filing form 1040ez Ray is retired and received a fully taxable pension of $15,500. Filing form 1040ez He also received social security benefits and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Filing form 1040ez Alice worked during the year and had wages of $14,000. Filing form 1040ez She made a deductible payment to her IRA account of $1,000. Filing form 1040ez Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Filing form 1040ez They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Filing form 1040ez They find none of Ray's social security benefits are taxable. Filing form 1040ez On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Filing form 1040ez Filled-in Worksheet 1. Filing form 1040ez Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Filing form 1040ez None of your benefits are taxable for 2013. Filing form 1040ez For more information, see Repayments More Than Gross Benefits . Filing form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Filing form 1040ez S. Filing form 1040ez Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Filing form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Filing form 1040ez 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Filing form 1040ez $5,600         2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez 2,800     3. Filing form 1040ez Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Filing form 1040ez 29,750     4. Filing form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Filing form 1040ez -0-     5. Filing form 1040ez Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Filing form 1040ez -0-     6. Filing form 1040ez Combine lines 2, 3, 4, and 5 6. Filing form 1040ez 32,550     7. Filing form 1040ez Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing form 1040ez  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Filing form 1040ez 1,000     8. Filing form 1040ez Is the amount on line 7 less than the amount on line 6?             No. Filing form 1040ez None of your social security benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez 31,550     9. Filing form 1040ez If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Filing form 1040ez 32,000       Note. Filing form 1040ez If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 9 less than the amount on line 8?             No. Filing form 1040ez None of your benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez       11. Filing form 1040ez Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Filing form 1040ez       12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez       13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez       14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez       15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez       16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez       17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez       18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez       19. Filing form 1040ez Taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18. Filing form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Filing form 1040ez         If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Filing form 1040ez         Example 3. Filing form 1040ez Joe and Betty Johnson file a joint return on Form 1040 for 2013. Filing form 1040ez Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Filing form 1040ez Joe's Form RRB-1099 shows $10,000 in box 5. Filing form 1040ez Betty is a retired government worker and received a fully taxable pension of $38,000. Filing form 1040ez They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Filing form 1040ez S. Filing form 1040ez savings bond. Filing form 1040ez The savings bond interest qualified for the exclusion. Filing form 1040ez They figure their taxable benefits by completing Worksheet 1 below. Filing form 1040ez Because they have qualified U. Filing form 1040ez S. Filing form 1040ez savings bond interest, they follow the note at the beginning of the worksheet and use the amount from line 2 of their Schedule B (Form 1040A or 1040) on line 3 of the worksheet instead of the amount from line 8a of their Form 1040. Filing form 1040ez On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Filing form 1040ez More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. Filing form 1040ez (See Maximum taxable part under How Much Is Taxable earlier. Filing form 1040ez ) Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Filing form 1040ez Filled-in Worksheet 1. Filing form 1040ez Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Filing form 1040ez None of your benefits are taxable for 2013. Filing form 1040ez For more information, see Repayments More Than Gross Benefits . Filing form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Filing form 1040ez S. Filing form 1040ez Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Filing form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Filing form 1040ez 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Filing form 1040ez $10,000         2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez 5,000     3. Filing form 1040ez Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Filing form 1040ez 40,500     4. Filing form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Filing form 1040ez -0-     5. Filing form 1040ez Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Filing form 1040ez -0-     6. Filing form 1040ez Combine lines 2, 3, 4, and 5 6. Filing form 1040ez 45,500     7. Filing form 1040ez Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing form 1040ez  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Filing form 1040ez -0-     8. Filing form 1040ez Is the amount on line 7 less than the amount on line 6?             No. Filing form 1040ez None of your social security benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez 45,500     9. Filing form 1040ez If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Filing form 1040ez 32,000       Note. Filing form 1040ez If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 9 less than the amount on line 8?             No. Filing form 1040ez None of your benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez 13,500     11. Filing form 1040ez Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Filing form 1040ez 12,000     12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez 1,500     13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez 12,000     14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez 6,000     15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez 5,000     16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez 1,275     17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez 6,275     18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez 8,500     19. Filing form 1040ez Taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18. Filing form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Filing form 1040ez $6,275       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Filing form 1040ez         Filled-in Worksheet 1. Filing form 1040ez Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Filing form 1040ez None of your benefits are taxable for 2013. Filing form 1040ez For more information, see Repayments More Than Gross Benefits . Filing form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Filing form 1040ez S. Filing form 1040ez Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Filing form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Filing form 1040ez 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Filing form 1040ez $4,000         2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez 2,000     3. Filing form 1040ez Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Filing form 1040ez 8,000     4. Filing form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Filing form 1040ez -0-     5. Filing form 1040ez Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Filing form 1040ez -0-     6. Filing form 1040ez Combine lines 2, 3, 4, and 5 6. Filing form 1040ez 10,000     7. Filing form 1040ez Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing form 1040ez  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Filing form 1040ez -0-     8. Filing form 1040ez Is the amount on line 7 less than the amount on line 6?             No. Filing form 1040ez None of your social security benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez 10,000     9. Filing form 1040ez If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Filing form 1040ez         Note. Filing form 1040ez If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 9 less than the amount on line 8?             No. Filing form 1040ez None of your benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez       11. Filing form 1040ez Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Filing form 1040ez       12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez       13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez       14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez       15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez       16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez       17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez 8,500     18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez 3,400     19. Filing form 1040ez Taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18. Filing form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Filing form 1040ez $3,400       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Filing form 1040ez         Example 4. Filing form 1040ez Bill and Eileen Jones are married and live together, but file separate Form 1040 returns for 2013. Filing form 1040ez Bill earned $8,000 during 2013. Filing form 1040ez The only other income he had for the year was $4,000 net social security benefits (box 5 of his Form SSA-1099). Filing form 1040ez Bill figures his taxable benefits by completing Worksheet 1 below. Filing form 1040ez He must include 85% of his social security benefits in his taxable income because he is married filing separately and lived with his spouse during 2013. Filing form 1040ez See How Much Is Taxable earlier. Filing form 1040ez Bill enters $4,000 on his Form 1040, line 20a, and $3,400 on Form 1040, line 20b. Filing form 1040ez Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Filing form 1040ez This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Filing form 1040ez No part of the lump-sum death benefit is subject to tax. Filing form 1040ez Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Filing form 1040ez However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Filing form 1040ez You can elect this method if it lowers your taxable benefits. Filing form 1040ez Under the lump-sum election method, you refigure the taxable part of all your benefits for the earlier year (including the lump-sum payment) using that year's income. Filing form 1040ez Then you subtract any taxable benefits for that year that you previously reported. Filing form 1040ez The remainder is the taxable part of the lump-sum payment. Filing form 1040ez Add it to the taxable part of your benefits for 2013 (figured without the lump-sum payment for the earlier year). Filing form 1040ez Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Filing form 1040ez Do not file an amended return for the earlier year. Filing form 1040ez Will the lump-sum election method lower your taxable benefits?   To find out, take the following steps. Filing form 1040ez Complete Worksheet 1 in this publication. Filing form 1040ez Complete Worksheet 2 and Worksheet 3 as appropriate. Filing form 1040ez Use Worksheet 2 if your lump-sum payment was for a year after 1993. Filing form 1040ez Use Worksheet 3 if it was for 1993 or an earlier year. Filing form 1040ez Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received the lump-sum payment. Filing form 1040ez Complete Worksheet 4. Filing form 1040ez Compare the taxable benefits on line 19 of Worksheet 1 with the taxable benefits on line 21 of Worksheet 4. Filing form 1040ez If the taxable benefits on Worksheet 4 are lower than the taxable benefits on Worksheet 1, you can elect to report the lower amount on your return. Filing form 1040ez Making the election. Filing form 1040ez   If you elect to report your taxable benefits under the lump-sum election method, follow the instructions at the bottom of Worksheet 4. Filing form 1040ez Do not attach the completed worksheets to your return. Filing form 1040ez Keep them with your records. Filing form 1040ez    Once you elect this method of figuring the taxable part of a lump-sum payment, you can revoke your election only with the consent of the IRS. Filing form 1040ez Lump-sum payment reported on Form SSA-1099 or RRB-1099. Filing form 1040ez   If you received a lump-sum payment in 2013 that includes benefits for one or more earlier years after 1983, it will be included in box 3 of either Form SSA-1099 or Form RRB-1099. Filing form 1040ez That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. Filing form 1040ez The form will also show the year (or years) the payment is for. Filing form 1040ez However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2011. Filing form 1040ez You must contact the RRB for a breakdown by year for any amount shown in box 9. Filing form 1040ez Example Jane Jackson is single. Filing form 1040ez In 2012 she applied for social security disability benefits but was told she was ineligible. Filing form 1040ez She appealed the decision and won. Filing form 1040ez In 2013, she received a lump-sum payment of $6,000, of which $2,000 was for 2012 and $4,000 was for 2013. Filing form 1040ez Jane also received $5,000 in social security benefits in 2013, so her total benefits in 2013 were $11,000. Filing form 1040ez Jane's other income for 2012 and 2013 is as follows. Filing form 1040ez   Income 2012 2013     Wages $20,000 $ 3,500     Interest income 2,000 2,500     Dividend income 1,000 1,500     Fully taxable pension   18,000     Total $23,000 $25,500   To see if the lump-sum election method results in lower taxable benefits, she completes Worksheets 1, 2, and 4 from this publication. Filing form 1040ez She does not need to complete Worksheet 3 because her lump-sum payment was for years after 1993. Filing form 1040ez Jane completes Worksheet 1 to find the amount of her taxable benefits for 2013 under the regular method. Filing form 1040ez She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2012 under the lump-sum election method. Filing form 1040ez She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits. Filing form 1040ez After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21, and Worksheet 1, line 19. Filing form 1040ez Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. Filing form 1040ez To do this, she prints “LSE” to the left of Form 1040, line 20a. Filing form 1040ez She then enters $11,000 on Form 1040, line 20a, and her taxable benefits of $2,500 on line 20b. Filing form 1040ez Jane's filled-in worksheets (1, 2, and 4) follow. Filing form 1040ez Jane Jackson's Filled-in Worksheet 1. Filing form 1040ez Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Filing form 1040ez None of your benefits are taxable for 2013. Filing form 1040ez For more information, see Repayments More Than Gross Benefits . Filing form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Filing form 1040ez S. Filing form 1040ez Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Filing form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Filing form 1040ez 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Filing form 1040ez $11,000         2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez 5,500     3. Filing form 1040ez Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Filing form 1040ez 25,500     4. Filing form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Filing form 1040ez -0-     5. Filing form 1040ez Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Filing form 1040ez -0-     6. Filing form 1040ez Combine lines 2, 3, 4, and 5 6. Filing form 1040ez 31,000     7. Filing form 1040ez Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing form 1040ez  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Filing form 1040ez -0-     8. Filing form 1040ez Is the amount on line 7 less than the amount on line 6?             No. Filing form 1040ez None of your social security benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez 31,000     9. Filing form 1040ez If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Filing form 1040ez 25,000       Note. Filing form 1040ez If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 9 less than the amount on line 8?             No. Filing form 1040ez None of your benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez 6,000     11. Filing form 1040ez Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Filing form 1040ez 9,000     12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez -0-     13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez 6,000     14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez 3,000     15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez 3,000     16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez -0-     17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez 3,000     18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez 9,350     19. Filing form 1040ez Taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18. Filing form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Filing form 1040ez $3,000       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Filing form 1040ez         Jane Jackson's Filled-in Worksheet 2. Filing form 1040ez Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 2012 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year 1. Filing form 1040ez $2,000           Note. Filing form 1040ez If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Filing form 1040ez Otherwise, go on to line 2. Filing form 1040ez             2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez 1,000   3. Filing form 1040ez Enter your adjusted gross income for the earlier year 3. Filing form 1040ez 23,000   4. Filing form 1040ez Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. Filing form 1040ez S. Filing form 1040ez savings bond interest (Form 8815) Student loan interest (Form 1040, page 1, or Form 1040A, page 1) Tuition and fees (Form 1040, page 1, or Form 1040A, page 1) Domestic production activities (for 2005 through 2012) (Form 1040, page 1) Foreign earned income or housing (Form 2555 or Form 2555-EZ) Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico 4. Filing form 1040ez -0-   5. Filing form 1040ez Enter any tax-exempt interest received in the earlier year 5. Filing form 1040ez -0-   6. Filing form 1040ez Add lines 2 through 5 6. Filing form 1040ez 24,000   7. Filing form 1040ez Enter your taxable benefits for the earlier year that you previously reported 7. Filing form 1040ez -0-   8. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez 24,000   9. Filing form 1040ez If, for the earlier year, you were:     Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), married filing separately and you lived apart from your spouse for all of the earlier year, enter $25,000 9. Filing form 1040ez 25,000     Note. Filing form 1040ez If you were married filing separately and you lived with your spouse at any time during the earlier year, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 8 more than the amount on line 9?       No. Filing form 1040ez Skip lines 10 through 20 and enter -0- on line 21. Filing form 1040ez       Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez     11. Filing form 1040ez Enter $12,000 if married filing jointly for the earlier year; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of the earlier year 11. Filing form 1040ez     12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez     13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez     14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez     15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez     16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez     17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez     18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez     19. Filing form 1040ez Refigured taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18 19. Filing form 1040ez     20. Filing form 1040ez Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. Filing form 1040ez     21. Filing form 1040ez Additional taxable benefits. Filing form 1040ez Subtract line 20 from line 19. Filing form 1040ez Also enter this amount on Worksheet 4, line 20 21. Filing form 1040ez -0-     Do not file an amended return for this earlier year. Filing form 1040ez Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. Filing form 1040ez   Jane Jackson's Filled-in Worksheet 4. Filing form 1040ez Figure Your Taxable Benefits Under the Lump-Sum Election Method (Use With Worksheet 2 or 3)     Complete Worksheet 1 and Worksheets 2 and 3 as appropriate before completing this worksheet. Filing form 1040ez 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for 2013, minus the lump-sum payment for years before 2013 1. Filing form 1040ez $9,000         Note. Filing form 1040ez If line 1 is zero or less, skip lines 2 through 18, enter -0- on line 19 and go to line 20. Filing form 1040ez Otherwise, go on to line 2. Filing form 1040ez           2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez 4,500   3. Filing form 1040ez Enter the amount from Worksheet 1, line 3 3. Filing form 1040ez 25,500   4. Filing form 1040ez Enter the amount from Worksheet 1, line 4 4. Filing form 1040ez -0-   5. Filing form 1040ez Enter the amount from Worksheet 1, line 5 5. Filing form 1040ez -0-   6. Filing form 1040ez Combine lines 2, 3, 4, and 5 6. Filing form 1040ez 30,000   7. Filing form 1040ez Enter the amount from Worksheet 1, line 7 7. Filing form 1040ez -0-   8. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez 30,000   9. Filing form 1040ez Enter the amount from Worksheet 1, line 9. Filing form 1040ez But if you are married filing separately and lived with your spouse at any time during 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then, go to line 18 9. Filing form 1040ez 25,000   10. Filing form 1040ez Is the amount on line 8 more than the amount on line 9? No. Filing form 1040ez Skip lines 10 through 18, enter -0- on line 19, and go to line 20. Filing form 1040ez  Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez 5,000   11. Filing form 1040ez Enter the amount from Worksheet 1, line 11 11. Filing form 1040ez 9,000   12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez -0-   13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez 5,000   14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez 2,500   15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez 2,500   16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez -0-   17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez 2,500   18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez 7,650   19. Filing form 1040ez Enter the smaller of line 17 or line 18 19. Filing form 1040ez 2,500   20. Filing form 1040ez Enter the total of the amounts from Worksheet 2, line 21, and Worksheet 3, line 14, for all earlier years for which the lump-sum payment was received 20. Filing form 1040ez -0-   21. Filing form 1040ez Taxable benefits under lump-sum election method. Filing form 1040ez Add lines 19 and 20 21. Filing form 1040ez $2,500   Next. Filing form 1040ez Is line 21 above smaller than Worksheet 1, line 19? No. Filing form 1040ez Do not use this method to figure your taxable benefits. Filing form 1040ez Follow the instructions on Worksheet 1 to report your benefits. Filing form 1040ez  Yes. Filing form 1040ez You can elect to report your taxable benefits under this method. Filing form 1040ez To elect this method:     Enter “LSE” to the left of Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez If line 21 above is zero, follow the instructions in line 10 for “No” on Worksheet 1. Filing form 1040ez Otherwise: Enter the amount from Worksheet 1, line 1, on Form 1040, line 20a, or on Form 1040A, line 14a. Filing form 1040ez Enter the amount from line 21 above on Form 1040, line 20b, or on Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez   Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Filing form 1040ez Disability payments. Filing form 1040ez   You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. Filing form 1040ez If you received a lump-sum payment from SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. Filing form 1040ez If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Filing form 1040ez Claim the deduction or credit in the same way explained under Repayment of benefits received in an earlier year in the section Repayments More Than Gross Benefits , later. Filing form 1040ez Legal expenses. Filing form 1040ez   You can usually deduct legal expenses that you pay or incur to produce or collect taxable income or in connection with the determination, collection, or refund of any tax. Filing form 1040ez   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Filing form 1040ez Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Filing form 1040ez If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Filing form 1040ez Do not use Worksheet 1 in this case. Filing form 1040ez If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Filing form 1040ez If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Filing form 1040ez Joint return. Filing form 1040ez   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5, but your spouse's does not, subtract the amount in box 5 of your form from the amount in box 5 of your spouse's form. Filing form 1040ez You do this to get your net benefits when figuring if your combined benefits are taxable. Filing form 1040ez Example. Filing form 1040ez John and Mary file a joint return for 2013. Filing form 1040ez John received Form SSA-1099 showing $3,000 in box 5. Filing form 1040ez Mary also received Form SSA-1099 and the amount in box 5 was ($500). Filing form 1040ez John and Mary will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable. Filing form 1040ez Repayment of benefits received in an earlier year. Filing form 1040ez   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Filing form 1040ez Deduction $3,000 or less. Filing form 1040ez   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Filing form 1040ez Claim it on Schedule A (Form 1040), line 23. Filing form 1040ez Deduction more than $3,000. Filing form 1040ez   If this deduction is more than $3,000, you should figure your tax two ways: Figure your tax for 2013 with the itemized deduction included on Schedule A, line 28. Filing form 1040ez Figure your tax for 2013 in the following steps: Figure the tax without the itemized deduction included on Schedule A, line 28. Filing form 1040ez For each year after 1983 for which part of the negative figure represents a repayment of benefits, refigure your taxable benefits as if your total benefits for the year were reduced by that part of the negative figure. Filing form 1040ez Then refigure the tax for that year. Filing form 1040ez Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Filing form 1040ez Subtract the result in (c) from the result in (a). Filing form 1040ez   Compare the tax figured in methods (1) and (2). Filing form 1040ez Your tax for 2013 is the smaller of the two amounts. Filing form 1040ez If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Filing form 1040ez If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Filing form 1040ez Check box d and enter “I. Filing form 1040ez R. Filing form 1040ez C. Filing form 1040ez 1341” in the space next to that box. Filing form 1040ez If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Filing form 1040ez Worksheets Blank Worksheets 1 through 4 are provided in this section: Worksheet 1, Figuring Your Taxable Benefits; Worksheet 2, Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993); Worksheet 3, Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994); Worksheet 4, Figure Your Taxable Benefits Under the Lump-Sum Election Method (Use With Worksheet 2 or 3). Filing form 1040ez Worksheet 1. Filing form 1040ez Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing form 1040ez Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Filing form 1040ez None of your benefits are taxable for 2013. Filing form 1040ez For more information, see Repayments More Than Gross Benefits . Filing form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Filing form 1040ez S. Filing form 1040ez Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Filing form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Filing form 1040ez 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Filing form 1040ez           2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez       3. Filing form 1040ez Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Filing form 1040ez       4. Filing form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Filing form 1040ez       5. Filing form 1040ez Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Filing form 1040ez       6. Filing form 1040ez Combine lines 2, 3, 4, and 5 6. Filing form 1040ez       7. Filing form 1040ez Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing form 1040ez  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Filing form 1040ez       8. Filing form 1040ez Is the amount on line 7 less than the amount on line 6?             No. Filing form 1040ez None of your social security benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez       9. Filing form 1040ez If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Filing form 1040ez         Note. Filing form 1040ez If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 9 less than the amount on line 8?             No. Filing form 1040ez None of your benefits are taxable. Filing form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing form 1040ez If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing form 1040ez             Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez       11. Filing form 1040ez Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Filing form 1040ez       12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez       13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez       14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez       15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez       16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez       17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez       18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez       19. Filing form 1040ez Taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18. Filing form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Filing form 1040ez         If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Filing form 1040ez         Worksheet 2. Filing form 1040ez Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year 1. Filing form 1040ez             Note. Filing form 1040ez If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Filing form 1040ez Otherwise, go on to line 2. Filing form 1040ez             2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez     3. Filing form 1040ez Enter your adjusted gross income for the earlier year 3. Filing form 1040ez     4. Filing form 1040ez Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. Filing form 1040ez S. Filing form 1040ez savings bond interest (Form 8815) Student loan interest (Form 1040, page 1, or Form 1040A, page 1) Tuition and fees (Form 1040, page 1, or Form 1040A, page 1) Domestic production activities (for 2005 through 2012) (Form 1040, page 1) Foreign earned income or housing (Form 2555 or Form 2555-EZ) Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico 4. Filing form 1040ez     5. Filing form 1040ez Enter any tax-exempt interest received in the earlier year 5. Filing form 1040ez     6. Filing form 1040ez Add lines 2 through 5 6. Filing form 1040ez     7. Filing form 1040ez Enter your taxable benefits for the earlier year that you previously reported 7. Filing form 1040ez     8. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez     9. Filing form 1040ez If, for the earlier year, you were:     Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), married filing separately and you lived apart from your spouse for all of the earlier year, enter $25,000 9. Filing form 1040ez       Note. Filing form 1040ez If you were married filing separately and you lived with your spouse at any time during the earlier year, skip lines 9 through 16; multiply line 8 by 85% (. Filing form 1040ez 85) and enter the result on line 17. Filing form 1040ez Then go to line 18. Filing form 1040ez         10. Filing form 1040ez Is the amount on line 8 more than the amount on line 9?       No. Filing form 1040ez Skip lines 10 through 20 and enter -0- on line 21. Filing form 1040ez       Yes. Filing form 1040ez Subtract line 9 from line 8 10. Filing form 1040ez     11. Filing form 1040ez Enter $12,000 if married filing jointly for the earlier year; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of the earlier year 11. Filing form 1040ez     12. Filing form 1040ez Subtract line 11 from line 10. Filing form 1040ez If zero or less, enter -0- 12. Filing form 1040ez     13. Filing form 1040ez Enter the smaller of line 10 or line 11 13. Filing form 1040ez     14. Filing form 1040ez Enter one-half of line 13 14. Filing form 1040ez     15. Filing form 1040ez Enter the smaller of line 2 or line 14 15. Filing form 1040ez     16. Filing form 1040ez Multiply line 12 by 85% (. Filing form 1040ez 85). Filing form 1040ez If line 12 is zero, enter -0- 16. Filing form 1040ez     17. Filing form 1040ez Add lines 15 and 16 17. Filing form 1040ez     18. Filing form 1040ez Multiply line 1 by 85% (. Filing form 1040ez 85) 18. Filing form 1040ez     19. Filing form 1040ez Refigured taxable benefits. Filing form 1040ez Enter the smaller of line 17 or line 18 19. Filing form 1040ez     20. Filing form 1040ez Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. Filing form 1040ez     21. Filing form 1040ez Additional taxable benefits. Filing form 1040ez Subtract line 20 from line 19. Filing form 1040ez Also enter this amount on Worksheet 4, line 20 21. Filing form 1040ez       Do not file an amended return for this earlier year. Filing form 1040ez Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. Filing form 1040ez   Worksheet 3. Filing form 1040ez Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994) Enter earlier year 1. Filing form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year 1. Filing form 1040ez           Note. Filing form 1040ez If line 1 is zero or less, skip lines 2 through 13 and enter -0- on line 14. Filing form 1040ez Otherwise, go on to line 2. Filing form 1040ez           2. Filing form 1040ez Enter one-half of line 1 2. Filing form 1040ez     3. Filing form 1040ez Enter your adjusted gross income for the earlier year 3. Filing form 1040ez     4. Filing form 1040ez Enter the total of any exclusions/adjustments you claimed in the earlier year for: Qualified U. Filing form 1040ez S. Filing form 1040ez savings bond interest (Form 8815) Foreign earned income or housing (Form 2555 or Form 2555-EZ) Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico 4. Filing form 1040ez     5. Filing form 1040ez Enter any tax-exempt interest received in the earlier year 5. Filing form 1040ez     6. Filing form 1040ez Add lines 2 through 5 6. Filing form 1040ez     7. Filing form 1040ez Enter your taxable benefits for the earlier year that you previously reported 7. Filing form 1040ez     8. Filing form 1040ez Subtract line 7 from line 6 8. Filing form 1040ez     9. Filing form 1040ez Enter $25,000 ($32,000 if married filing jointly for the earlier year; $-0- if married filing separately for the earlier year and you lived with your spouse at any time during the earlier year) 9. Filing form 1040ez     10. Filing form 1040ez Is the amount on line 8 more than the amount on line 9? No. Filing form 1040ez Skip lines 10 through 13 and enter -0- on line 14. Filing form 1040ez  Yes. Filing form 1040ez Subtract line 9 from line 8. Filing form 1040ez 10. Filing form 1040ez     11. Filing form 1040ez Enter one-half of line 10 11. Filing form 1040ez     12. Filing form 1040ez Refigured taxable benefits. Filing form 1040ez Enter the smaller of line 2 or line 11 12. Filing form 1040ez     13. Filing form 1040ez Enter your taxable benefits for the earlier year (or as refigured due to a previous
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The Filing Form 1040ez

Filing form 1040ez Car Expenses Table of Contents Introduction Depreciation of CarSpecial Depreciation Allowance Depreciation Limit Amended Return Election Not To Claim Special Allowance If you purchased a car after September 10, 2001, for use in your business (or as an employee) and figure your deductible expenses using the actual car expense method, new law contains provisions that may affect your depreciation deduction for that car. Filing form 1040ez Publication 463, Travel, Entertainment, Gift, and Car Expenses, contains information on figuring depreciation on your car. Filing form 1040ez However, Publication 463 does not contain the new provisions because it was printed before the law was enacted. Filing form 1040ez The new provisions are in the Supplement to Publication 463, which is reprinted below. Filing form 1040ez Supplement to Publication 463 Travel, Entertainment, Gift, and Car Expenses   Introduction This supplemental publication is for taxpayers who purchased a car for business purposes after September 10, 2001, and figure their deductible expenses, including a deduction for depreciation, using the actual car expense method. Filing form 1040ez After Publication 463 was printed, the Job Creation and Worker Assistance Act of 2002 was signed into law by the President. Filing form 1040ez Certain provisions of this new law may reduce your taxes for 2001. Filing form 1040ez The new law contains the following provisions. Filing form 1040ez A new depreciation deduction, the special depreciation allowance. Filing form 1040ez An increase in the limit on depreciation for any car for which you claim the new special depreciation allowance. Filing form 1040ez If you have already filed your 2001 return, you may wish to file an amended return to claim any of these benefits. Filing form 1040ez See Amended Return, later. Filing form 1040ez Depreciation of Car If you used the actual car expense method to figure your deduction for a car you own and use in your business (or as an employee), you generally can claim a depreciation deduction. Filing form 1040ez However, there is a limit on the depreciation deduction you can take for your car each year. Filing form 1040ez See Depreciation Limit later. Filing form 1040ez Special Depreciation Allowance The new law allows you to claim a special depreciation allowance. Filing form 1040ez This special allowance is a deduction equal to 30% of the depreciable basis of qualified property. Filing form 1040ez You figure the amount of the special depreciation allowance after any section 179 deduction you choose to claim, but before figuring your regular depreciation deduction under the Modified Accelerated Cost Recovery System (MACRS). Filing form 1040ez See Depreciation Deduction under Actual Car Expenses in chapter 4 of Publication 463 for information about MACRS. Filing form 1040ez You can claim the special depreciation allowance only for the year the qualified property is placed in service. Filing form 1040ez Qualified property. Filing form 1040ez   Qualified property includes a car (any four-wheeled vehicle, including a truck or van not more than 6,000 pounds, that is made primarily for use on public streets, roads, and highways) that meets all of the following requirements. Filing form 1040ez You bought it new. Filing form 1040ez You bought it after September 10, 2001. Filing form 1040ez (But a car is not qualified property if a binding written contract for you to buy the car was in effect before September 11, 2001. Filing form 1040ez ) You began using it for business after September 10, 2001, and used it more than 50% in a qualified business use. Filing form 1040ez Example. Filing form 1040ez Bob bought a new car on October 15, 2001, for $20,000 and placed it in service immediately, using it 75% for business. Filing form 1040ez Bob's car is qualified property. Filing form 1040ez Bob chooses not to take a section 179 deduction for the car. Filing form 1040ez He does claim the new special depreciation allowance. Filing form 1040ez Bob first must figure the car's depreciable basis, which is $15,000 ($20,000 × . Filing form 1040ez 75). Filing form 1040ez He then figures the special depreciation allowance of $4,500 ($15,000 × . Filing form 1040ez 30). Filing form 1040ez The remaining depreciable basis of $10,500 ($15,000 - $4,500) is depreciated using MACRS (200% declining balance method, half-year convention) and results in a deduction of $2,100 ($10,500 × . Filing form 1040ez 20), for a total depreciation deduction for 2001 of $6,600 ($4,500 + $2,100). Filing form 1040ez However, Bob's depreciation deduction is limited to $5,745 ($7,660 × . Filing form 1040ez 75), as discussed next. Filing form 1040ez Depreciation Limit The limit on your depreciation deduction for 2001 is increased to $7,660 for a car that is qualified property (defined above) and for which you claim the special depreciation allowance. Filing form 1040ez The limit is increased to $23,080 if the car is an electric car. Filing form 1040ez The section 179 deduction is treated as depreciation for purposes of this limit. Filing form 1040ez If you use a car less than 100% in your business or work, the limit is $7,660 (or $23,080 for an electric car) multiplied by the percentage of business and investment use during the year. Filing form 1040ez For cars that do not qualify for (or for which you choose not to claim) the special depreciation allowance, the limit remains $3,060 ($9,280 for electric cars). Filing form 1040ez Amended Return If you filed your 2001 calendar year return before June 1, 2002, and did not claim the new special depreciation allowance for a qualified car, you can claim it by filing an amended return on Form 1040X, Amended U. Filing form 1040ez S. Filing form 1040ez Individual Income Tax Return, by April 15, 2003. Filing form 1040ez At the top of the Form 1040X, print “Filed pursuant to Revenue Procedure 2002–33. Filing form 1040ez ” If you are an employee, attach Form 2106, Employee Business Expenses (revised March 2002). Filing form 1040ez If you are self-employed, attach Form 4562, Depreciation and Amortization (revised March 2002). Filing form 1040ez Or, you can claim the special depreciation allowance by filing Form 3115, Application for Change in Accounting Method, with your 2002 return. Filing form 1040ez For details, see Revenue Procedure 2002–33. Filing form 1040ez (But, filing Form 1040X for 2001 enables you to claim the special allowance earlier than attaching Form 3115 to your 2002 return. Filing form 1040ez ) You cannot claim the special depreciation allowance on an amended return (or by using Form 3115) if you made, or are treated as having made, the election not to claim it described later. Filing form 1040ez Example. Filing form 1040ez The facts are the same as in the previous example except that Bob filed his original 2001 income tax return on April 15, 2002, and claimed a $3,000 ($20,000 x . Filing form 1040ez 75 x . Filing form 1040ez 20) depreciation deduction for his new car using MACRS. Filing form 1040ez Bob now wishes to claim the special depreciation allowance for his new car on an amended 2001 return. Filing form 1040ez Bob, who is an employee, files Form 1040X, by April 15, 2003, with an updated Form 2106 (revised March 2002) attached, increasing his total depreciation deduction to $5,745, as figured in the earlier example. Filing form 1040ez Bob's new filled-in Form 2106 is shown later. Filing form 1040ez Election Not To Claim Special Allowance You can elect not to claim the special depreciation allowance for a car by making a statement attached to, or written on, your return indicating that you are electing not to claim the special depreciation allowance for 5-year property. Filing form 1040ez As a general rule, you must make this election by the due date (including extensions) of your return. Filing form 1040ez You can have an automatic extension of 6 months from the due date of your return (excluding extensions) to make the election with an amended return. Filing form 1040ez To get this extension, you must have filed your original return by the due date (including extensions). Filing form 1040ez At the top of the statement, print “Filed pursuant to section 301. Filing form 1040ez 9100–2. Filing form 1040ez ” If you elect not to claim the special depreciation allowance for a car, you cannot claim it for any other 5-year property placed in service during the same year. Filing form 1040ez Unless you elect (or are treated as electing) not to claim the special depreciation allowance, you must reduce the car's adjusted basis by the amount of the allowance, even if the allowance was not claimed. Filing form 1040ez Deemed election for return filed before June 1, 2002. Filing form 1040ez   If you did not make the election not to claim the special depreciation allowance in the time and manner described above, you will still be treated as electing not to claim it if all of the following apply. Filing form 1040ez You filed your 2001 return before June 1, 2002. Filing form 1040ez You claimed depreciation on your return but did not claim the special depreciation allowance. Filing form 1040ez You did not file an amended 2001 return by April 15, 2003, or a Form 3115 with your 2002 return, to claim the special depreciation allowance. Filing form 1040ez Form 2106, Page 1, for Bob Smith Form 2106, Page 2, for Bob Smith Prev  Up  Next   Home   More Online Publications