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Free State Tax Filings

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Free State Tax Filings

Free state tax filings 11. Free state tax filings   Social Security and Equivalent Railroad Retirement Benefits Table of Contents Introduction Useful Items - You may want to see: Are Any of Your Benefits Taxable? How To Report Your BenefitsHow Much Is Taxable? Examples Deductions Related to Your BenefitsRepayments More Than Gross Benefits Introduction This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Free state tax filings It explains the following topics. Free state tax filings How to figure whether your benefits are taxable. Free state tax filings How to use the social security benefits worksheet (with examples). Free state tax filings How to report your taxable benefits. Free state tax filings How to treat repayments that are more than the benefits you received during the year. Free state tax filings Social security benefits include monthly retirement, survivor, and disability benefits. Free state tax filings They do not include supplemental security income (SSI) payments, which are not taxable. Free state tax filings Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Free state tax filings They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Free state tax filings If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board. Free state tax filings These forms show the amounts received and repaid, and taxes withheld for the year. Free state tax filings You may receive more than one of these forms for the same year. Free state tax filings You should add the amounts shown on all the Forms SSA-1099 and Forms RRB-1099 you receive for the year to determine the total amounts received and repaid, and taxes withheld for that year. Free state tax filings See the Appendix at the end of Publication 915 for more information. Free state tax filings Note. Free state tax filings When the term “benefits” is used in this chapter, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Free state tax filings What is not covered in this chapter. Free state tax filings   This chapter does not cover the tax rules for the following railroad retirement benefits. Free state tax filings Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. Free state tax filings Tier 2 benefits. Free state tax filings Vested dual benefits. Free state tax filings Supplemental annuity benefits. Free state tax filings For information on these benefits, see Publication 575, Pension and Annuity Income. Free state tax filings   This chapter does not cover the tax rules for social security benefits reported on Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. Free state tax filings For information about these benefits, see Publication 519, U. Free state tax filings S. Free state tax filings Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Free state tax filings   This chapter also does not cover the tax rules for foreign social security benefits. Free state tax filings These benefits are taxable as annuities, unless they are exempt from U. Free state tax filings S. Free state tax filings tax or treated as a U. Free state tax filings S. Free state tax filings social security benefit under a tax treaty. Free state tax filings Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 915 Social Security and Equivalent Railroad Retirement Benefits Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request Are Any of Your Benefits Taxable? To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Free state tax filings When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Free state tax filings S. Free state tax filings 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. Free state tax filings Children's benefits. Free state tax filings   The rules in this chapter apply to benefits received by children. Free state tax filings See Who is taxed , later. Free state tax filings Figuring total income. Free state tax filings   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. Free state tax filings If the total is more than your base amount, part of your benefits may be taxable. Free state tax filings    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. Free state tax filings 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. Free state tax filings    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. Free state tax filings If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Free state tax filings Base amount. Free state tax filings   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. Free state tax filings Worksheet 11-1. Free state tax filings   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. Free state tax filings This is a quick way to check whether some of your benefits may be taxable. Free state tax filings Worksheet 11-1. Free state tax filings A Quick Way To Check if Your Benefits May Be Taxable A. Free state tax filings Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Free state tax filings Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Free state tax filings (If you received more than one form, combine the amounts from box 5 and enter the total. Free state tax filings ) A. Free state tax filings   Note. Free state tax filings If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Free state tax filings B. Free state tax filings Enter one-half of the amount on line A B. Free state tax filings   C. Free state tax filings Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Free state tax filings   D. Free state tax filings Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Free state tax filings   E. Free state tax filings Add lines B, C, and D E. Free state tax filings   Note. Free state tax filings Compare the amount on line E to your base amount for your filing status. Free state tax filings 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. Free state tax filings If the amount on line E is more than your base amount, some of your benefits may be taxable. Free state tax filings You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Free state tax filings 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. Free state tax filings Example. Free state tax filings You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Free state tax filings In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Free state tax filings Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Free state tax filings You also received a taxable pension of $22,800 and interest income of $500. Free state tax filings You did not have any tax-exempt interest income. Free state tax filings Your benefits are not taxable for 2013 because your income, as figured in Worksheet 11-1, is not more than your base amount ($32,000) for married filing jointly. Free state tax filings 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. Free state tax filings Filled-in Worksheet 11-1. Free state tax filings A Quick Way To Check if Your Benefits May Be Taxable A. Free state tax filings Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Free state tax filings Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Free state tax filings (If you received more than one form, combine the amounts from box 5 and enter the total. Free state tax filings ) A. Free state tax filings $11,000 Note. Free state tax filings If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Free state tax filings B. Free state tax filings Enter one-half of the amount on line A B. Free state tax filings 5,500 C. Free state tax filings Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Free state tax filings 23,300 D. Free state tax filings Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Free state tax filings -0- E. Free state tax filings Add lines B, C, and D E. Free state tax filings $28,800 Note. Free state tax filings Compare the amount on line E to your base amount for your filing status. Free state tax filings 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. Free state tax filings If the amount on line E is more than your base amount, some of your benefits may be taxable. Free state tax filings You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Free state tax filings 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. Free state tax filings Who is taxed. Free state tax filings   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. Free state tax filings 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. Free state tax filings 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. Free state tax filings Repayment of benefits. Free state tax filings   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Free state tax filings It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Free state tax filings If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Free state tax filings   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. Free state tax filings Your repayments are shown in box 4. Free state tax filings The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Free state tax filings Use the amount in box 5 to figure whether any of your benefits are taxable. Free state tax filings Tax withholding and estimated tax. Free state tax filings   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. Free state tax filings If you choose to do this, you must complete a Form W-4V. Free state tax filings   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. Free state tax filings For details, see Publication 505 or the instructions for Form 1040-ES. Free state tax filings How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Free state tax filings You cannot use Form 1040EZ. Free state tax filings Reporting on Form 1040. Free state tax filings   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. Free state tax filings 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. Free state tax filings Reporting on Form 1040A. Free state tax filings   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. Free state tax filings 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. Free state tax filings Benefits not taxable. Free state tax filings   If you are filing Form 1040EZ, do not report any benefits on your tax return. Free state tax filings 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. Free state tax filings Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free state tax filings 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. Free state tax filings 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. Free state tax filings Generally, the higher that total amount, the greater the taxable part of your benefits. Free state tax filings Maximum taxable part. Free state tax filings   Generally, up to 50% of your benefits will be taxable. Free state tax filings However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Free state tax filings 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). Free state tax filings You are married filing separately and lived with your spouse at any time during 2013. Free state tax filings Which worksheet to use. Free state tax filings   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. Free state tax filings You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. Free state tax filings You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Free state tax filings 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. Free state tax filings Situation (1) does not apply and you take an exclusion for interest from qualified U. Free state tax filings S. Free state tax filings 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. Free state tax filings In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. Free state tax filings You received a lump-sum payment for an earlier year. Free state tax filings In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Free state tax filings See Lump-sum election next. Free state tax filings Lump-sum election. Free state tax filings   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. Free state tax filings    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. Free state tax filings No part of the lump-sum death benefit is subject to tax. Free state tax filings   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Free state tax filings 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. Free state tax filings You can elect this method if it lowers your taxable benefits. Free state tax filings Making the election. Free state tax filings   If you received a lump-sum benefit payment in 2013 that includes benefits for one or more earlier years, follow the instructions in Publication 915 under Lump-Sum Election to see whether making the election will lower your taxable benefits. Free state tax filings That discussion also explains how to make the election. Free state tax filings    Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Free state tax filings Do not file an amended return for the earlier year. Free state tax filings Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. Free state tax filings Example 1. Free state tax filings George White is single and files Form 1040 for 2013. Free state tax filings He received the following income in 2013: Fully taxable pension $18,600 Wages from part-time job 9,400 Taxable interest income 990 Total $28,990 George also received social security benefits during 2013. Free state tax filings The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. Free state tax filings To figure his taxable benefits, George completes the worksheet shown here. Free state tax filings Filled-in Worksheet 1. Free state tax filings Figuring Your Taxable Benefits 1. Free state tax filings Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free state tax filings Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. Free state tax filings Enter one-half of line 1 2,990 3. Free state tax filings Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Free state tax filings     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. Free state tax filings Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Free state tax filings 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 -0-       6. Free state tax filings Combine lines 2, 3, 4, and 5 31,980 7. Free state tax filings Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free state tax filings     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Free state tax filings Is the amount on line 7 less than the amount on line 6?     No. Free state tax filings None of your social security benefits are taxable. Free state tax filings Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free state tax filings   Yes. Free state tax filings Subtract line 7 from line 6 31,980 9. Free state tax filings 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 25,000   Note. Free state tax filings 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% (. Free state tax filings 85) and enter the result on line 17. Free state tax filings Then go to line 18. Free state tax filings   10. Free state tax filings Is the amount on line 9 less than the amount on line 8?     No. Free state tax filings None of your benefits are taxable. Free state tax filings Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free state tax filings 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. Free state tax filings     Yes. Free state tax filings Subtract line 9 from line 8 6,980 11. Free state tax filings 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 9,000 12. Free state tax filings Subtract line 11 from line 10. Free state tax filings If zero or less, enter -0- -0- 13. Free state tax filings Enter the smaller of line 10 or line 11 6,980 14. Free state tax filings Enter one-half of line 13 3,490 15. Free state tax filings Enter the smaller of line 2 or line 14 2,990 16. Free state tax filings Multiply line 12 by 85% (. Free state tax filings 85). Free state tax filings If line 12 is zero, enter -0- -0- 17. Free state tax filings Add lines 15 and 16 2,990 18. Free state tax filings Multiply line 1 by 85% (. Free state tax filings 85) 5,083 19. Free state tax filings Taxable benefits. Free state tax filings Enter the smaller of line 17 or line 18. Free state tax filings Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $2,990 The amount on line 19 of George's worksheet shows that $2,990 of his social security benefits is taxable. Free state tax filings On line 20a of his Form 1040, George enters his net benefits of $5,980. Free state tax filings On line 20b, he enters his taxable benefits of $2,990. Free state tax filings Example 2. Free state tax filings Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Free state tax filings Ray is retired and received a fully taxable pension of $15,500. Free state tax filings He also received social security benefits, and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Free state tax filings Alice worked during the year and had wages of $14,000. Free state tax filings She made a deductible payment to her IRA account of $1,000. Free state tax filings Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Free state tax filings They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Free state tax filings They find none of Ray's social security benefits are taxable. Free state tax filings On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Free state tax filings Filled-in Worksheet 1. Free state tax filings Figuring Your Taxable Benefits 1. Free state tax filings Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free state tax filings Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. Free state tax filings Enter one-half of line 1 2,800 3. Free state tax filings Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Free state tax filings     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. Free state tax filings Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Free state tax filings 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 -0-       6. Free state tax filings Combine lines 2, 3, 4, and 5 32,550 7. Free state tax filings Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free state tax filings     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. Free state tax filings Is the amount on line 7 less than the amount on line 6?     No. Free state tax filings None of your social security benefits are taxable. Free state tax filings Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free state tax filings   Yes. Free state tax filings Subtract line 7 from line 6 31,550 9. Free state tax filings 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 32,000   Note. Free state tax filings 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% (. Free state tax filings 85) and enter the result on line 17. Free state tax filings Then go to line 18. Free state tax filings   10. Free state tax filings Is the amount on line 9 less than the amount on line 8?     No. Free state tax filings None of your benefits are taxable. Free state tax filings Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free state tax filings 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. Free state tax filings     Yes. Free state tax filings Subtract line 9 from line 8   11. Free state tax filings 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   12. Free state tax filings Subtract line 11 from line 10. Free state tax filings If zero or less, enter -0-   13. Free state tax filings Enter the smaller of line 10 or line 11   14. Free state tax filings Enter one-half of line 13   15. Free state tax filings Enter the smaller of line 2 or line 14   16. Free state tax filings Multiply line 12 by 85% (. Free state tax filings 85). Free state tax filings If line 12 is zero, enter -0-   17. Free state tax filings Add lines 15 and 16   18. Free state tax filings Multiply line 1 by 85% (. Free state tax filings 85)   19. Free state tax filings Taxable benefits. Free state tax filings Enter the smaller of line 17 or line 18. Free state tax filings Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. Free state tax filings Joe and Betty Johnson file a joint return on Form 1040 for 2013. Free state tax filings Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Free state tax filings Joe's Form RRB-1099 shows $10,000 in box 5. Free state tax filings Betty is a retired government worker and receives a fully taxable pension of $38,000. Free state tax filings They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Free state tax filings S. Free state tax filings savings bond. Free state tax filings The savings bond interest qualified for the exclusion. Free state tax filings They figure their taxable benefits by completing Worksheet 1. Free state tax filings Because they have qualified U. Free state tax filings S. Free state tax filings 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. Free state tax filings On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Free state tax filings Filled-in Worksheet 1. Free state tax filings 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. Free state tax filings • 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). Free state tax filings None of your benefits are taxable for 2013. Free state tax filings For more information, see Repayments More Than Gross Benefits. Free state tax filings • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Free state tax filings S. Free state tax filings 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. Free state tax filings Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Free state tax filings 1. Free state tax filings Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free state tax filings Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. Free state tax filings Enter one-half of line 1 5,000 3. Free state tax filings Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Free state tax filings     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. Free state tax filings Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Free state tax filings 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 -0-       6. Free state tax filings Combine lines 2, 3, 4, and 5 45,500 7. Free state tax filings Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free state tax filings     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Free state tax filings Is the amount on line 7 less than the amount on line 6?     No. Free state tax filings None of your social security benefits are taxable. Free state tax filings Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free state tax filings   Yes. Free state tax filings Subtract line 7 from line 6 45,500 9. Free state tax filings 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 32,000   Note. Free state tax filings 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% (. Free state tax filings 85) and enter the result on line 17. Free state tax filings Then go to line 18. Free state tax filings   10. Free state tax filings Is the amount on line 9 less than the amount on line 8?     No. Free state tax filings None of your benefits are taxable. Free state tax filings Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free state tax filings 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. Free state tax filings     Yes. Free state tax filings Subtract line 9 from line 8 13,500 11. Free state tax filings 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 12,000 12. Free state tax filings Subtract line 11 from line 10. Free state tax filings If zero or less, enter -0- 1,500 13. Free state tax filings Enter the smaller of line 10 or line 11 12,000 14. Free state tax filings Enter one-half of line 13 6,000 15. Free state tax filings Enter the smaller of line 2 or line 14 5,000 16. Free state tax filings Multiply line 12 by 85% (. Free state tax filings 85). Free state tax filings If line 12 is zero, enter -0- 1,275 17. Free state tax filings Add lines 15 and 16 6,275 18. Free state tax filings Multiply line 1 by 85% (. Free state tax filings 85) 8,500 19. Free state tax filings Taxable benefits. Free state tax filings Enter the smaller of line 17 or line 18. Free state tax filings Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $6,275 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. Free state tax filings Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Free state tax filings Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Free state tax filings Disability payments. Free state tax filings   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. Free state tax filings 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. Free state tax filings If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Free state tax filings Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. Free state tax filings Legal expenses. Free state tax filings   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. Free state tax filings   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Free state tax filings 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. Free state tax filings 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. Free state tax filings Do not use a worksheet in this case. Free state tax filings 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. Free state tax filings If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Free state tax filings Joint return. Free state tax filings   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. Free state tax filings You do this to get your net benefits when figuring if your combined benefits are taxable. Free state tax filings Example. Free state tax filings John and Mary file a joint return for 2013. Free state tax filings John received Form SSA-1099 showing $3,000 in box 5. Free state tax filings Mary also received Form SSA-1099 and the amount in box 5 was ($500). Free state tax filings 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. Free state tax filings Repayment of benefits received in an earlier year. Free state tax filings   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. Free state tax filings Deduction $3,000 or less. Free state tax filings   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. Free state tax filings Claim it on Schedule A (Form 1040), line 23. Free state tax filings Deduction more than $3,000. Free state tax filings    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. Free state tax filings Figure your tax for 2013 in the following steps. Free state tax filings Figure the tax without the itemized deduction included on Schedule A, line 28. Free state tax filings 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. Free state tax filings Then refigure the tax for that year. Free state tax filings Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Free state tax filings Subtract the result in (c) from the result in (a). Free state tax filings Compare the tax figured in methods (1) and (2). Free state tax filings Your tax for 2013 is the smaller of the two amounts. Free state tax filings If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Free state tax filings If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Free state tax filings Check box d and enter “I. Free state tax filings R. Free state tax filings C. Free state tax filings 1341” in the space next to that box. Free state tax filings If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Free state tax filings Prev  Up  Next   Home   More Online Publications

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How to Make an Offshore Voluntary Disclosure

The Offshore Voluntary Disclosure Program is offered to those taxpayers with undisclosed offshore accounts or assets. Please follow the process outlined below. You should refer to How to Make a Domestic Voluntary Disclosure if the undisclosed accounts are domestic in nature.

Pre-Clearance:

Taxpayers or representatives may fax to the IRS Criminal Investigation Lead Development Center at (267) 941-1115 the taxpayers' name, date of birth, social security number and address (if the taxpayer is represented by a tax professional, an executed power of attorney must be included).  

IRS Criminal Investigation will then notify taxpayers or their representatives via fax whether or not they have been cleared to make a voluntary disclosure using the Offshore Voluntary Disclosures Letter. Taxpayers or representatives with questions regarding the pre-clearance can call (267) 941-1607 or contact their nearest Criminal Investigation Office.

Note: Pre-clearance does not guarantee a taxpayer acceptance into the Offshore Voluntary Disclosure Program.    

Offshore Voluntary Disclosure Letter

If the taxpayer chooses to submit a pre-clearance request, after the taxpayer receives a pre-clearance notification, the taxpayer will have 30 days from receipt of the fax notification to complete the Offshore Voluntary Disclosure Letter and attachment (under documents). If the taxpayer chooses to bypass the pre-clearance process, the taxpayer must mail the Offshore Voluntary Disclosures Letter to the following address: 


Internal Revenue Service 
Criminal Investigation
ATTN:  Offshore Voluntary Disclosure Coordinator
Philadelphia Lead Development Center
1-D04-100
2970 Market Street
Philadelphia, PA 19104

The IRS will review the offshore Voluntary Disclosures Letters and notify the taxpayer or representative by mail whether the voluntary disclosure has been preliminarily accepted or declined. 

Complete Voluntary Disclosure Package

Once the voluntary disclosure has been preliminarily accepted, the taxpayer should send the full voluntary disclosure package to:

Internal Revenue Service
3651 S. I H 35 Stop 4301 AUSC
Austin, TX  78741
ATTN: 2011 Offshore Voluntary Disclosure Initiative

Opt Out Procedure

Taxpayers may request to opt out of the civil settlement structure of the 2009 Offshore Voluntary Disclosure Program or 2011 Offshore Voluntary Disclosure Initiative.  For specific information on the opt out process, see questions 51.1 through 51.3 under the 2011 OVDI Frequently Asked Questions and Answers.

Tax administration questions such as Where's My Refund or Where Do I File can be addressed by other IRS offices

 


Frequently Asked Questions (FAQs)

IRS Criminal Investigation Home Page

Page Last Reviewed or Updated: 24-Mar-2014

The Free State Tax Filings

Free state tax filings Publication 538 - Additional Material Prev  Up  Next   Home   More Online Publications