Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

How To Amend Taxes

Easy Tax Forms2012 Tax FormsFiling Taxes As UnemployedFile Free State TaxesEz 40 Tax FormVita Tax Locations1040ez OnlineCan I File A 1040x OnlineNeed Do 2011 TaxesHrblock LoginTaxact 2011 Deluxe Federal Edition DownloadHow To File Taxes OnlineFree 1040ez Tax FilingTax Return For Students 2011H&r Block TaxesWhere To File 1040x For 2012Where Can I File 2012 TaxesWww Irs Gov Efile Index HtmlFree State Tax Filing SoftwareIrs Free File 2012Federal Income Tax Rates 2012Filing Federal And State Taxes For FreeWww Freefilefillableforms ComE File Income Tax ReturnMyfreetaxes 2013Tax Act 2011 LoginH&r Block Tax Online1040x For 2009Download 1040ez Federal Tax FormFree E FileUnemployed TaxesEz1040How Far Back Can I Amend A Tax ReturnI Need To Print A Free 1040x FormInternal Revenue Tax Forms 20102011 TaxHow To File 1040ezFile My Taxes For 2012File 2007 Taxes For FreeHow To File Tax Extensions Online

How To Amend Taxes

How to amend taxes 4. How to amend taxes   Qualified Plans Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Kinds of PlansDefined Contribution Plan Defined Benefit Plan Qualification RulesEarly retirement. How to amend taxes Loan secured by benefits. How to amend taxes Waiver of survivor benefits. How to amend taxes Waiver of 30-day waiting period before annuity starting date. How to amend taxes Involuntary cash-out of benefits not more than dollar limit. How to amend taxes Exception for certain loans. How to amend taxes Exception for QDRO. How to amend taxes SIMPLE and safe harbor 401(k) plan exception. How to amend taxes Setting Up a Qualified PlanAdopting a Written Plan Investing Plan Assets Minimum Funding RequirementDue dates. How to amend taxes Installment percentage. How to amend taxes Extended period for making contributions. How to amend taxes ContributionsEmployer Contributions Employee Contributions When Contributions Are Considered Made Employer DeductionDeduction Limits Deduction Limit for Self-Employed Individuals Where To Deduct Contributions Carryover of Excess Contributions Excise Tax for Nondeductible (Excess) Contributions Elective Deferrals (401(k) Plans)Limit on Elective Deferrals Automatic Enrollment Treatment of Excess Deferrals Qualified Roth Contribution ProgramElective Deferrals Qualified Distributions Reporting Requirements DistributionsRequired Distributions Distributions From 401(k) Plans Tax Treatment of Distributions Tax on Early Distributions Tax on Excess Benefits Excise Tax on Reversion of Plan Assets Notification of Significant Benefit Accrual Reduction Prohibited TransactionsTax on Prohibited Transactions Reporting RequirementsOne-participant plan. How to amend taxes Caution: Form 5500-EZ not required. How to amend taxes Form 5500. How to amend taxes Electronic filing of Forms 5500 and 5500-SF. How to amend taxes Topics - This chapter discusses: Kinds of plans Qualification rules Setting up a qualified plan Minimum funding requirement Contributions Employer deduction Elective deferrals (401(k) plans) Qualified Roth contribution program Distributions Prohibited transactions Reporting requirements Useful Items - You may want to see: Publications 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 3066 Have you had your Check-up this year? for Retirement Plans 3998 Choosing A Retirement Solution for Your Small Business 4222 401(k) Plans for Small Businesses 4530 Designated Roth Accounts under a 401(k), 403(b), or governmental 457(b) plans 4531 401(k) Plan Checklist 4674 Automatic Enrollment 401(k) Plans for Small Businesses 4806 Profit Sharing Plans for Small Businesses Forms (and Instructions) www. How to amend taxes dol. How to amend taxes gov/ebsa/pdf/2013-5500. How to amend taxes pdf www. How to amend taxes dol. How to amend taxes gov/ebsa/pdf/2013-5500-SF. How to amend taxes pdf W-2 Wage and Tax Statement Schedule K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. How to amend taxes 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How to amend taxes 1040 U. How to amend taxes S. How to amend taxes Individual Income Tax Return Schedule C (Form 1040) Profit or Loss From Business Schedule F (Form 1040) Profit or Loss From Farming 5300 Application for Determination for Employee Benefit Plan 5310 Application for Determination for Terminating Plan 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5330 Return of Excise Taxes Related to Employee Benefit Plans 5500 Annual Return/Report of Employee Benefit Plan. How to amend taxes For copies of this form, go to: 5500-EZ Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan 5500-SF Short Form Annual Return/Report of Small Employee Benefit Plan. How to amend taxes For copies of this form, go to: 8717 User Fee for Employee Plan Determination Letter Request 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs 8955-SSA Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits These qualified retirement plans set up by self-employed individuals are sometimes called Keogh or H. How to amend taxes R. How to amend taxes 10 plans. How to amend taxes A sole proprietor or a partnership can set up one of these plans. How to amend taxes A common-law employee or a partner cannot set up one of these plans. How to amend taxes The plans described here can also be set up and maintained by employers that are corporations. How to amend taxes All the rules discussed here apply to corporations except where specifically limited to the self-employed. How to amend taxes The plan must be for the exclusive benefit of employees or their beneficiaries. How to amend taxes These qualified plans can include coverage for a self-employed individual. How to amend taxes As an employer, you can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. How to amend taxes The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. How to amend taxes Kinds of Plans There are two basic kinds of qualified plans—defined contribution plans and defined benefit plans—and different rules apply to each. How to amend taxes You can have more than one qualified plan, but your contributions to all the plans must not total more than the overall limits discussed under Contributions and Employer Deduction, later. How to amend taxes Defined Contribution Plan A defined contribution plan provides an individual account for each participant in the plan. How to amend taxes It provides benefits to a participant largely based on the amount contributed to that participant's account. How to amend taxes Benefits are also affected by any income, expenses, gains, losses, and forfeitures of other accounts that may be allocated to an account. How to amend taxes A defined contribution plan can be either a profit-sharing plan or a money purchase pension plan. How to amend taxes Profit-sharing plan. How to amend taxes   Although it is called a “profit-sharing plan,” you do not actually have to make a business profit for the year in order to make a contribution (except for yourself if you are self-employed as discussed under Self-employed Individual, later). How to amend taxes A profit-sharing plan can be set up to allow for discretionary employer contributions, meaning the amount contributed each year to the plan is not fixed. How to amend taxes An employer may even make no contribution to the plan for a given year. How to amend taxes   The plan must provide a definite formula for allocating the contribution among the participants and for distributing the accumulated funds to the employees after they reach a certain age, after a fixed number of years, or upon certain other occurrences. How to amend taxes   In general, you can be more flexible in making contributions to a profit-sharing plan than to a money purchase pension plan (discussed next) or a defined benefit plan (discussed later). How to amend taxes Money purchase pension plan. How to amend taxes   Contributions to a money purchase pension plan are fixed and are not based on your business profits. How to amend taxes For example, if the plan requires that contributions be 10% of the participants' compensation without regard to whether you have profits (or the self-employed person has earned income), the plan is a money purchase pension plan. How to amend taxes This applies even though the compensation of a self-employed individual as a participant is based on earned income derived from business profits. How to amend taxes Defined Benefit Plan A defined benefit plan is any plan that is not a defined contribution plan. How to amend taxes Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. How to amend taxes Actuarial assumptions and computations are required to figure these contributions. How to amend taxes Generally, you will need continuing professional help to have a defined benefit plan. How to amend taxes Qualification Rules To qualify for the tax benefits available to qualified plans, a plan must meet certain requirements (qualification rules) of the tax law. How to amend taxes Generally, unless you write your own plan, the financial institution that provided your plan will take the continuing responsibility for meeting qualification rules that are later changed. How to amend taxes The following is a brief overview of important qualification rules that generally have not yet been discussed. How to amend taxes It is not intended to be all-inclusive. How to amend taxes See Setting Up a Qualified Plan , later. How to amend taxes Generally, the following qualification rules also apply to a SIMPLE 401(k) retirement plan. How to amend taxes A SIMPLE 401(k) plan is, however, not subject to the top-heavy plan rules and nondiscrimination rules if the plan satisfies the provisions discussed in chapter 3 under SIMPLE 401(k) Plan. How to amend taxes Plan assets must not be diverted. How to amend taxes   Your plan must make it impossible for its assets to be used for, or diverted to, purposes other than the benefit of employees and their beneficiaries. How to amend taxes As a general rule, the assets cannot be diverted to the employer. How to amend taxes Minimum coverage requirement must be met. How to amend taxes   To be a qualified plan, a defined benefit plan must benefit at least the lesser of the following. How to amend taxes 50 employees, or The greater of: 40% of all employees, or Two employees. How to amend taxes If there is only one employee, the plan must benefit that employee. How to amend taxes Contributions or benefits must not discriminate. How to amend taxes   Under the plan, contributions or benefits to be provided must not discriminate in favor of highly compensated employees. How to amend taxes Contributions and benefits must not be more than certain limits. How to amend taxes   Your plan must not provide for contributions or benefits that are more than certain limits. How to amend taxes The limits apply to the annual contributions and other additions to the account of a participant in a defined contribution plan and to the annual benefit payable to a participant in a defined benefit plan. How to amend taxes These limits are discussed later in this chapter under Contributions. How to amend taxes Minimum vesting standard must be met. How to amend taxes   Your plan must satisfy certain requirements regarding when benefits vest. How to amend taxes A benefit is vested (you have a fixed right to it) when it becomes nonforfeitable. How to amend taxes A benefit is nonforfeitable if it cannot be lost upon the happening, or failure to happen, of any event. How to amend taxes Special rules apply to forfeited benefit amounts. How to amend taxes In defined contribution plans, forfeitures can be allocated to the accounts of remaining participants in a nondiscriminatory way, or they can be used to reduce your contributions. How to amend taxes   Forfeitures under a defined benefit plan cannot be used to increase the benefits any employee would otherwise receive under the plan. How to amend taxes Forfeitures must be used instead to reduce employer contributions. How to amend taxes Participation. How to amend taxes   In general, an employee must be allowed to participate in your plan if he or she meets both the following requirements. How to amend taxes Has reached age 21. How to amend taxes Has at least 1 year of service (2 years if the plan is not a 401(k) plan and provides that after not more than 2 years of service the employee has a nonforfeitable right to all his or her accrued benefit). How to amend taxes A plan cannot exclude an employee because he or she has reached a specified age. How to amend taxes Leased employee. How to amend taxes   A leased employee, defined in chapter 1, who performs services for you (recipient of the services) is treated as your employee for certain plan qualification rules. How to amend taxes These rules include those in all the following areas. How to amend taxes Nondiscrimination in coverage, contributions, and benefits. How to amend taxes Minimum age and service requirements. How to amend taxes Vesting. How to amend taxes Limits on contributions and benefits. How to amend taxes Top-heavy plan requirements. How to amend taxes Contributions or benefits provided by the leasing organization for services performed for you are treated as provided by you. How to amend taxes Benefit payment must begin when required. How to amend taxes   Your plan must provide that, unless the participant chooses otherwise, the payment of benefits to the participant must begin within 60 days after the close of the latest of the following periods. How to amend taxes The plan year in which the participant reaches the earlier of age 65 or the normal retirement age specified in the plan. How to amend taxes The plan year in which the 10th anniversary of the year in which the participant began participating in the plan occurs. How to amend taxes The plan year in which the participant separates from service. How to amend taxes Early retirement. How to amend taxes   Your plan can provide for payment of retirement benefits before the normal retirement age. How to amend taxes If your plan offers an early retirement benefit, a participant who separates from service before satisfying the early retirement age requirement is entitled to that benefit if he or she meets both the following requirements. How to amend taxes Satisfies the service requirement for the early retirement benefit. How to amend taxes Separates from service with a nonforfeitable right to an accrued benefit. How to amend taxes The benefit, which may be actuarially reduced, is payable when the early retirement age requirement is met. How to amend taxes Required minimum distributions. How to amend taxes   Special rules require minimum annual distributions from qualified plans, generally beginning after age  70½. How to amend taxes See Required Distributions , under Distributions, later. How to amend taxes Survivor benefits. How to amend taxes   Defined benefit and money purchase pension plans must provide automatic survivor benefits in both the following forms. How to amend taxes A qualified joint and survivor annuity for a vested participant who does not die before the annuity starting date. How to amend taxes A qualified pre-retirement survivor annuity for a vested participant who dies before the annuity starting date and who has a surviving spouse. How to amend taxes   The automatic survivor benefit also applies to any participant under a profit-sharing plan unless all the following conditions are met. How to amend taxes The participant does not choose benefits in the form of a life annuity. How to amend taxes The plan pays the full vested account balance to the participant's surviving spouse (or other beneficiary if the surviving spouse consents or if there is no surviving spouse) if the participant dies. How to amend taxes The plan is not a direct or indirect transferee of a plan that must provide automatic survivor benefits. How to amend taxes Loan secured by benefits. How to amend taxes   If automatic survivor benefits are required for a spouse under a plan, he or she must consent to a loan that uses as security the accrued benefits in the plan. How to amend taxes Waiver of survivor benefits. How to amend taxes   Each plan participant may be permitted to waive the joint and survivor annuity or the pre-retirement survivor annuity (or both), but only if the participant has the written consent of the spouse. How to amend taxes The plan also must allow the participant to withdraw the waiver. How to amend taxes The spouse's consent must be witnessed by a plan representative or notary public. How to amend taxes Waiver of 30-day waiting period before annuity starting date. How to amend taxes    A plan may permit a participant to waive (with spousal consent) the 30-day minimum waiting period after a written explanation of the terms and conditions of a joint and survivor annuity is provided to each participant. How to amend taxes   The waiver is allowed only if the distribution begins more than 7 days after the written explanation is provided. How to amend taxes Involuntary cash-out of benefits not more than dollar limit. How to amend taxes   A plan may provide for the immediate distribution of the participant's benefit under the plan if the present value of the benefit is not greater than $5,000. How to amend taxes   However, the distribution cannot be made after the annuity starting date unless the participant and the spouse or surviving spouse of a participant who died (if automatic survivor benefits are required for a spouse under the plan) consents in writing to the distribution. How to amend taxes If the present value is greater than $5,000, the plan must have the written consent of the participant and the spouse or surviving spouse (if automatic survivor benefits are required for a spouse under the plan) for any immediate distribution of the benefit. How to amend taxes   Benefits attributable to rollover contributions and earnings on them can be ignored in determining the present value of these benefits. How to amend taxes   A plan must provide for the automatic rollover of any cash-out distribution of more than $1,000 to an individual retirement account or annuity, unless the participant chooses otherwise. How to amend taxes A section 402(f) notice must be sent prior to an involuntary cash-out of an eligible rollover distribution. How to amend taxes See Section 402(f) Notice under Distributions, later, for more details. How to amend taxes Consolidation, merger, or transfer of assets or liabilities. How to amend taxes   Your plan must provide that, in the case of any merger or consolidation with, or transfer of assets or liabilities to, any other plan, each participant would (if the plan then terminated) receive a benefit equal to or more than the benefit he or she would have been entitled to just before the merger, etc. How to amend taxes (if the plan had then terminated). How to amend taxes Benefits must not be assigned or alienated. How to amend taxes   Your plan must provide that a participant's or beneficiary's benefits under the plan cannot be taken away by any legal or equitable proceeding except as provided below or pursuant to certain judgements or settlements against the participant for violations of plan rules. How to amend taxes Exception for certain loans. How to amend taxes   A loan from the plan (not from a third party) to a participant or beneficiary is not treated as an assignment or alienation if the loan is secured by the participant's accrued nonforfeitable benefit and is exempt from the tax on prohibited transactions under section 4975(d)(1) or would be exempt if the participant were a disqualified person. How to amend taxes A disqualified person is defined later in this chapter under Prohibited Transactions. How to amend taxes Exception for QDRO. How to amend taxes   Compliance with a QDRO (qualified domestic relations order) does not result in a prohibited assignment or alienation of benefits. How to amend taxes   Payments to an alternate payee under a QDRO before the participant attains age 59½ are not subject to the 10% additional tax that would otherwise apply under certain circumstances. How to amend taxes Benefits distributed to an alternate payee under a QDRO can be rolled over tax free to an individual retirement account or to an individual retirement annuity. How to amend taxes No benefit reduction for social security increases. How to amend taxes   Your plan must not permit a benefit reduction for a post-separation increase in the social security benefit level or wage base for any participant or beneficiary who is receiving benefits under your plan, or who is separated from service and has nonforfeitable rights to benefits. How to amend taxes This rule also applies to plans supplementing the benefits provided by other federal or state laws. How to amend taxes Elective deferrals must be limited. How to amend taxes   If your plan provides for elective deferrals, it must limit those deferrals to the amount in effect for that particular year. How to amend taxes See Limit on Elective Deferrals later in this chapter. How to amend taxes Top-heavy plan requirements. How to amend taxes   A top-heavy plan is one that mainly favors partners, sole proprietors, and other key employees. How to amend taxes   A plan is top-heavy for a plan year if, for the preceding plan year, the total value of accrued benefits or account balances of key employees is more than 60% of the total value of accrued benefits or account balances of all employees. How to amend taxes Additional requirements apply to a top-heavy plan primarily to provide minimum benefits or contributions for non-key employees covered by the plan. How to amend taxes   Most qualified plans, whether or not top-heavy, must contain provisions that meet the top-heavy requirements and will take effect in plan years in which the plans are top-heavy. How to amend taxes These qualification requirements for top-heavy plans are explained in section 416 and its regulations. How to amend taxes SIMPLE and safe harbor 401(k) plan exception. How to amend taxes   The top-heavy plan requirements do not apply to SIMPLE 401(k) plans, discussed earlier in chapter 3, or to safe harbor 401(k) plans that consist solely of safe harbor contributions, discussed later in this chapter. How to amend taxes QACAs (discussed later) also are not subject to top-heavy requirements. How to amend taxes Setting Up a Qualified Plan There are two basic steps in setting up a qualified plan. How to amend taxes First you adopt a written plan. How to amend taxes Then you invest the plan assets. How to amend taxes You, the employer, are responsible for setting up and maintaining the plan. How to amend taxes If you are self-employed, it is not necessary to have employees besides yourself to sponsor and set up a qualified plan. How to amend taxes If you have employees, see Participation, under Qualification Rules, earlier. How to amend taxes Set-up deadline. How to amend taxes   To take a deduction for contributions for a tax year, your plan must be set up (adopted) by the last day of that year (December 31 for calendar-year employers). How to amend taxes Credit for startup costs. How to amend taxes   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a qualified plan that first became effective in 2013. How to amend taxes For more information, see Credit for startup costs under Reminders, earlier. How to amend taxes Adopting a Written Plan You must adopt a written plan. How to amend taxes The plan can be an IRS-approved master or prototype plan offered by a sponsoring organization. How to amend taxes Or it can be an individually designed plan. How to amend taxes Written plan requirement. How to amend taxes   To qualify, the plan you set up must be in writing and must be communicated to your employees. How to amend taxes The plan's provisions must be stated in the plan. How to amend taxes It is not sufficient for the plan to merely refer to a requirement of the Internal Revenue Code. How to amend taxes Master or prototype plans. How to amend taxes   Most qualified plans follow a standard form of plan (a master or prototype plan) approved by the IRS. How to amend taxes Master and prototype plans are plans made available by plan providers for adoption by employers (including self-employed individuals). How to amend taxes Under a master plan, a single trust or custodial account is established, as part of the plan, for the joint use of all adopting employers. How to amend taxes Under a prototype plan, a separate trust or custodial account is established for each employer. How to amend taxes Plan providers. How to amend taxes   The following organizations generally can provide IRS-approved master or prototype plans. How to amend taxes Banks (including some savings and loan associations and federally insured credit unions). How to amend taxes Trade or professional organizations. How to amend taxes Insurance companies. How to amend taxes Mutual funds. How to amend taxes Individually designed plan. How to amend taxes   If you prefer, you can set up an individually designed plan to meet specific needs. How to amend taxes Although advance IRS approval is not required, you can apply for approval by paying a fee and requesting a determination letter. How to amend taxes You may need professional help for this. How to amend taxes See Rev. How to amend taxes Proc. How to amend taxes 2014-6, 2014-1 I. How to amend taxes R. How to amend taxes B. How to amend taxes 198, available at www. How to amend taxes irs. How to amend taxes gov/irb/2014-1_IRB/ar10. How to amend taxes html, as annually updated, that may help you decide whether to apply for approval. How to amend taxes Internal Revenue Bulletins are available on the IRS website at IRS. How to amend taxes gov They are also available at most IRS offices and at certain libraries. How to amend taxes User fee. How to amend taxes   The fee mentioned earlier for requesting a determination letter does not apply to employers who have 100 or fewer employees who received at least $5,000 of compensation from the employer for the preceding year. How to amend taxes At least one of them must be a non-highly compensated employee participating in the plan. How to amend taxes The fee does not apply to requests made by the later of the following dates. How to amend taxes The end of the 5th plan year the plan is in effect. How to amend taxes The end of any remedial amendment period for the plan that begins within the first 5 plan years. How to amend taxes The request cannot be made by the sponsor of a prototype or similar plan the sponsor intends to market to participating employers. How to amend taxes   For more information about whether the user fee applies, see Rev. How to amend taxes Proc. How to amend taxes 2014-8, 2014-1 I. How to amend taxes R. How to amend taxes B. How to amend taxes 242, available at www. How to amend taxes irs. How to amend taxes gov/irb/2014-1_IRB/ar12. How to amend taxes html, as may be annually updated; Notice 2003-49, 2003-32 I. How to amend taxes R. How to amend taxes B. How to amend taxes 294, available at www. How to amend taxes irs. How to amend taxes gov/irb/2003-32_IRB/ar13. How to amend taxes html; and Notice 2011-86, 2011-45 I. How to amend taxes R. How to amend taxes B. How to amend taxes 698, available at www. How to amend taxes irs. How to amend taxes gov/irb/2011-45_IRB/ar11. How to amend taxes html. How to amend taxes Investing Plan Assets In setting up a qualified plan, you arrange how the plan's funds will be used to build its assets. How to amend taxes You can establish a trust or custodial account to invest the funds. How to amend taxes You, the trust, or the custodial account can buy an annuity contract from an insurance company. How to amend taxes Life insurance can be included only if it is incidental to the retirement benefits. How to amend taxes You set up a trust by a legal instrument (written document). How to amend taxes You may need professional help to do this. How to amend taxes You can set up a custodial account with a bank, savings and loan association, credit union, or other person who can act as the plan trustee. How to amend taxes You do not need a trust or custodial account, although you can have one, to invest the plan's funds in annuity contracts or face-amount certificates. How to amend taxes If anyone other than a trustee holds them, however, the contracts or certificates must state they are not transferable. How to amend taxes Other plan requirements. How to amend taxes   For information on other important plan requirements, see Qualification Rules , earlier in this chapter. How to amend taxes Minimum Funding Requirement In general, if your plan is a money purchase pension plan or a defined benefit plan, you must actually pay enough into the plan to satisfy the minimum funding standard for each year. How to amend taxes Determining the amount needed to satisfy the minimum funding standard for a defined benefit plan is complicated, and you should seek professional help in order to meet these contribution requirements. How to amend taxes For information on this funding requirement, see section 412 and its regulations. How to amend taxes Quarterly installments of required contributions. How to amend taxes   If your plan is a defined benefit plan subject to the minimum funding requirements, you generally must make quarterly installment payments of the required contributions. How to amend taxes If you do not pay the full installments timely, you may have to pay interest on any underpayment for the period of the underpayment. How to amend taxes Due dates. How to amend taxes   The due dates for the installments are 15 days after the end of each quarter. How to amend taxes For a calendar-year plan, the installments are due April 15, July 15, October 15, and January 15 (of the following year). How to amend taxes Installment percentage. How to amend taxes   Each quarterly installment must be 25% of the required annual payment. How to amend taxes Extended period for making contributions. How to amend taxes   Additional contributions required to satisfy the minimum funding requirement for a plan year will be considered timely if made by 8½ months after the end of that year. How to amend taxes Contributions A qualified plan is generally funded by your contributions. How to amend taxes However, employees participating in the plan may be permitted to make contributions, and you may be permitted to make contributions on your own behalf. How to amend taxes See Employee Contributions and Elective Deferrals later. How to amend taxes Contributions deadline. How to amend taxes   You can make deductible contributions for a tax year up to the due date of your return (plus extensions) for that year. How to amend taxes Self-employed individual. How to amend taxes   You can make contributions on behalf of yourself only if you have net earnings (compensation) from self-employment in the trade or business for which the plan was set up. How to amend taxes Your net earnings must be from your personal services, not from your investments. How to amend taxes If you have a net loss from self-employment, you cannot make contributions for yourself for the year, even if you can contribute for common-law employees based on their compensation. How to amend taxes Employer Contributions There are certain limits on the contributions and other annual additions you can make each year for plan participants. How to amend taxes There are also limits on the amount you can deduct. How to amend taxes See Deduction Limits , later. How to amend taxes Limits on Contributions and Benefits Your plan must provide that contributions or benefits cannot exceed certain limits. How to amend taxes The limits differ depending on whether your plan is a defined contribution plan or a defined benefit plan. How to amend taxes Defined benefit plan. How to amend taxes   For 2013, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of the following amounts. How to amend taxes 100% of the participant's average compensation for his or her highest 3 consecutive calendar years. How to amend taxes $205,000 ($210,000 for 2014). How to amend taxes Defined contribution plan. How to amend taxes   For 2013, a defined contribution plan's annual contributions and other additions (excluding earnings) to the account of a participant cannot exceed the lesser of the following amounts. How to amend taxes 100% of the participant's compensation. How to amend taxes $51,000 ($52,000 for 2014). How to amend taxes   Catch-up contributions (discussed later under Limit on Elective Deferrals) are not subject to the above limit. How to amend taxes Employee Contributions Participants may be permitted to make nondeductible contributions to a plan in addition to your contributions. How to amend taxes Even though these employee contributions are not deductible, the earnings on them are tax free until distributed in later years. How to amend taxes Also, these contributions must satisfy the actual contribution percentage (ACP) test of section 401(m)(2), a nondiscrimination test that applies to employee contributions and matching contributions. How to amend taxes See Regulations sections 1. How to amend taxes 401(k)-2 and 1. How to amend taxes 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). How to amend taxes When Contributions Are Considered Made You generally apply your plan contributions to the year in which you make them. How to amend taxes But you can apply them to the previous year if all the following requirements are met. How to amend taxes You make them by the due date of your tax return for the previous year (plus extensions). How to amend taxes The plan was established by the end of the previous year. How to amend taxes The plan treats the contributions as though it had received them on the last day of the previous year. How to amend taxes You do either of the following. How to amend taxes You specify in writing to the plan administrator or trustee that the contributions apply to the previous year. How to amend taxes You deduct the contributions on your tax return for the previous year. How to amend taxes A partnership shows contributions for partners on Form 1065. How to amend taxes Employer's promissory note. How to amend taxes   Your promissory note made out to the plan is not a payment that qualifies for the deduction. How to amend taxes Also, issuing this note is a prohibited transaction subject to tax. How to amend taxes See Prohibited Transactions , later. How to amend taxes Employer Deduction You can usually deduct, subject to limits, contributions you make to a qualified plan, including those made for your own retirement. How to amend taxes The contributions (and earnings and gains on them) are generally tax free until distributed by the plan. How to amend taxes Deduction Limits The deduction limit for your contributions to a qualified plan depends on the kind of plan you have. How to amend taxes Defined contribution plans. How to amend taxes   The deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) cannot be more than 25% of the compensation paid (or accrued) during the year to your eligible employees participating in the plan. How to amend taxes If you are self-employed, you must reduce this limit in figuring the deduction for contributions you make for your own account. How to amend taxes See Deduction Limit for Self-Employed Individuals , later. How to amend taxes   When figuring the deduction limit, the following rules apply. How to amend taxes Elective deferrals (discussed later) are not subject to the limit. How to amend taxes Compensation includes elective deferrals. How to amend taxes The maximum compensation that can be taken into account for each employee in 2013 is $255,000 ($260,000 for 2014). How to amend taxes Defined benefit plans. How to amend taxes   The deduction for contributions to a defined benefit plan is based on actuarial assumptions and computations. How to amend taxes Consequently, an actuary must figure your deduction limit. How to amend taxes    In figuring the deduction for contributions, you cannot take into account any contributions or benefits that are more than the limits discussed earlier under Limits on Contributions and Benefits, earlier. How to amend taxes Table 4–1. How to amend taxes Carryover of Excess Contributions Illustrated—Profit-Sharing Plan (000's omitted) Year Participants' compensation Participants' share of required contribution (10% of annual profit) Deductible  limit for current year (25% of compensation) Contribution Excess contribution carryover used1 Total  deduction including carryovers Excess contribution carryover available at end of year 2010 $1,000 $100 $250 $100 $ 0 $100 $ 0 2011 400 165 100 165 0 100 65 2012 500 100 125 100 25 125 40 2013 600 100 150 100 40 140 0  1There were no carryovers from years before 2010. How to amend taxes Deduction Limit for Self-Employed Individuals If you make contributions for yourself, you need to make a special computation to figure your maximum deduction for these contributions. How to amend taxes Compensation is your net earnings from self-employment, defined in chapter 1. How to amend taxes This definition takes into account both the following items. How to amend taxes The deduction for the deductible part of your self-employment tax. How to amend taxes The deduction for contributions on your behalf to the plan. How to amend taxes The deduction for your own contributions and your net earnings depend on each other. How to amend taxes For this reason, you determine the deduction for your own contributions indirectly by reducing the contribution rate called for in your plan. How to amend taxes To do this, use either the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed in chapter 5. How to amend taxes Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. How to amend taxes Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. How to amend taxes For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040); partnerships deduct them on Form 1065; and corporations deduct them on Form 1120, or Form 1120S. How to amend taxes Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. How to amend taxes (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you get from the partnership. How to amend taxes ) Carryover of Excess Contributions If you contribute more to the plans than you can deduct for the year, you can carry over and deduct the difference in later years, combined with your contributions for those years. How to amend taxes Your combined deduction in a later year is limited to 25% of the participating employees' compensation for that year. How to amend taxes For purposes of this limit, a SEP is treated as a profit-sharing (defined contribution) plan. How to amend taxes However, this percentage limit must be reduced to figure your maximum deduction for contributions you make for yourself. How to amend taxes See Deduction Limit for Self-Employed Individuals, earlier. How to amend taxes The amount you carry over and deduct may be subject to the excise tax discussed next. How to amend taxes Table 4-1, earlier, illustrates the carryover of excess contributions to a profit-sharing plan. How to amend taxes Excise Tax for Nondeductible (Excess) Contributions If you contribute more than your deduction limit to a retirement plan, you have made nondeductible contributions and you may be liable for an excise tax. How to amend taxes In general, a 10% excise tax applies to nondeductible contributions made to qualified pension and profit-sharing plans and to SEPs. How to amend taxes Special rule for self-employed individuals. How to amend taxes   The 10% excise tax does not apply to any contribution made to meet the minimum funding requirements in a money purchase pension plan or a defined benefit plan. How to amend taxes Even if that contribution is more than your earned income from the trade or business for which the plan is set up, the difference is not subject to this excise tax. How to amend taxes See Minimum Funding Requirement , earlier. How to amend taxes Reporting the tax. How to amend taxes   You must report the tax on your nondeductible contributions on Form 5330. How to amend taxes Form 5330 includes a computation of the tax. How to amend taxes See the separate instructions for completing the form. How to amend taxes Elective Deferrals (401(k) Plans) Your qualified plan can include a cash or deferred arrangement under which participants can choose to have you contribute part of their before-tax compensation to the plan rather than receive the compensation in cash. How to amend taxes A plan with this type of arrangement is popularly known as a “401(k) plan. How to amend taxes ” (As a self-employed individual participating in the plan, you can contribute part of your before-tax net earnings from the business. How to amend taxes ) This contribution is called an “elective deferral” because participants choose (elect) to defer receipt of the money. How to amend taxes In general, a qualified plan can include a cash or deferred arrangement only if the qualified plan is one of the following plans. How to amend taxes A profit-sharing plan. How to amend taxes A money purchase pension plan in existence on June 27, 1974, that included a salary reduction arrangement on that date. How to amend taxes Partnership. How to amend taxes   A partnership can have a 401(k) plan. How to amend taxes Restriction on conditions of participation. How to amend taxes   The plan cannot require, as a condition of participation, that an employee complete more than 1 year of service. How to amend taxes Matching contributions. How to amend taxes   If your plan permits, you can make matching contributions for an employee who makes an elective deferral to your 401(k) plan. How to amend taxes For example, the plan might provide that you will contribute 50 cents for each dollar your participating employees choose to defer under your 401(k) plan. How to amend taxes Matching contributions are generally subject to the ACP test discussed earlier under Employee Contributions. How to amend taxes Nonelective contributions. How to amend taxes   You can also make contributions (other than matching contributions) for your participating employees without giving them the choice to take cash instead. How to amend taxes These are called nonelective contributions. How to amend taxes Employee compensation limit. How to amend taxes   No more than $255,000 of the employee's compensation can be taken into account when figuring contributions other than elective deferrals in 2013. How to amend taxes This limit is $260,000 in 2014. How to amend taxes SIMPLE 401(k) plan. How to amend taxes   If you had 100 or fewer employees who earned $5,000 or more in compensation during the preceding year, you may be able to set up a SIMPLE 401(k) plan. How to amend taxes A SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy plan requirements discussed earlier under Qualification Rules. How to amend taxes For details about SIMPLE 401(k) plans, see SIMPLE 401(k) Plan in chapter 3. How to amend taxes Distributions. How to amend taxes   Certain rules apply to distributions from 401(k) plans. How to amend taxes See Distributions From 401(k) Plans , later. How to amend taxes Limit on Elective Deferrals There is a limit on the amount an employee can defer each year under these plans. How to amend taxes This limit applies without regard to community property laws. How to amend taxes Your plan must provide that your employees cannot defer more than the limit that applies for a particular year. How to amend taxes For 2013 and 2014, the basic limit on elective deferrals is $17,500. How to amend taxes This limit applies to all salary reduction contributions and elective deferrals. How to amend taxes If, in conjunction with other plans, the deferral limit is exceeded, the difference is included in the employee's gross income. How to amend taxes Catch-up contributions. How to amend taxes   A 401(k) plan can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. How to amend taxes The catch-up contribution limit for 2013 and 2014 is $5,500. How to amend taxes Elective deferrals are not treated as catch-up contributions for 2013 until they exceed the $17,500 limit, the actual deferral percentage (ADP) test limit of section 401(k)(3), or the plan limit (if any). How to amend taxes However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. How to amend taxes The catch-up contribution limit. How to amend taxes The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. How to amend taxes Treatment of contributions. How to amend taxes   Your contributions to your own 401(k) plan are generally deductible by you for the year they are contributed to the plan. How to amend taxes Matching or nonelective contributions made to the plan are also deductible by you in the year of contribution. How to amend taxes Your employees' elective deferrals other than designated Roth contributions are tax free until distributed from the plan. How to amend taxes Elective deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. How to amend taxes Forfeiture. How to amend taxes   Employees have a nonforfeitable right at all times to their accrued benefit attributable to elective deferrals. How to amend taxes Reporting on Form W-2. How to amend taxes   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. How to amend taxes You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. How to amend taxes You must also include them in box 12. How to amend taxes Mark the “Retirement plan” checkbox in box 13. How to amend taxes For more information, see the Form W-2 instructions. How to amend taxes Automatic Enrollment Your 401(k) plan can have an automatic enrollment feature. How to amend taxes Under this feature, you can automatically reduce an employee's pay by a fixed percentage and contribute that amount to the 401(k) plan on his or her behalf unless the employee affirmatively chooses not to have his or her pay reduced or chooses to have it reduced by a different percentage. How to amend taxes These contributions are elective deferrals. How to amend taxes An automatic enrollment feature will encourage employees' saving for retirement and will help your plan pass nondiscrimination testing (if applicable). How to amend taxes For more information, see Publication 4674, Automatic Enrollment 401(k) Plans for Small Businesses. How to amend taxes Eligible automatic contribution arrangement. How to amend taxes   Under an eligible automatic contribution arrangement (EACA), a participant is treated as having elected to have the employer make contributions in an amount equal to a uniform percentage of compensation. How to amend taxes This automatic election will remain in place until the participant specifically elects not to have such deferral percentage made (or elects a different percentage). How to amend taxes There is no required deferral percentage. How to amend taxes Withdrawals. How to amend taxes   Under an EACA, you may allow participants to withdraw their automatic contributions to the plan if certain conditions are met. How to amend taxes The participant must elect the withdrawal no later than 90 days after the date of the first elective contributions under the EACA. How to amend taxes The participant must withdraw the entire amount of EACA default contributions, including any earnings thereon. How to amend taxes   If the plan allows withdrawals under the EACA, the amount of the withdrawal other than the amount of any designated Roth contributions must be included in the employee's gross income for the tax year in which the distribution is made. How to amend taxes The additional 10% tax on early distributions will not apply to the distribution. How to amend taxes Notice requirement. How to amend taxes   Under an EACA, employees must be given written notice of the terms of the EACA within a reasonable period of time before each plan year. How to amend taxes The notice must be written in a manner calculated to be understood by the average employee and be sufficiently accurate and comprehensive in order to apprise the employee of his or her rights and obligations under the EACA. How to amend taxes The notice must include an explanation of the employee's right to elect not to have elective contributions made on his or her behalf, or to elect a different percentage, and the employee must be given a reasonable period of time after receipt of the notice before the first elective contribution is made. How to amend taxes The notice also must explain how contributions will be invested in the absence of an investment election by the employee. How to amend taxes Qualified automatic contribution arrangement. How to amend taxes    A qualified automatic contribution arrangement (QACA) is a type of safe harbor plan. How to amend taxes It contains an automatic enrollment feature, and mandatory employer contributions are required. How to amend taxes If your plan includes a QACA, it will not be subject to the ADP test (discussed later) nor the top-heavy requirements (discussed earlier). How to amend taxes Additionally, your plan will not be subject to the actual contribution percentage (ACP) test if certain additional requirements are met. How to amend taxes Under a QACA, each employee who is eligible to participate in the plan will be treated as having elected to make elective deferral contributions equal to a certain default percentage of compensation. How to amend taxes In order to not have default elective deferrals made, an employee must make an affirmative election specifying a deferral percentage (including zero, if desired). How to amend taxes If an employee does not make an affirmative election, the default deferral percentage must meet the following conditions. How to amend taxes It must be applied uniformly. How to amend taxes It must not exceed 10%. How to amend taxes It must be at least 3% in the first plan year it applies to an employee and through the end of the following year. How to amend taxes It must increase to at least 4% in the following plan year. How to amend taxes It must increase to at least 5% in the following plan year. How to amend taxes It must increase to at least 6% in subsequent plan years. How to amend taxes Matching or nonelective contributions. How to amend taxes   Under the terms of the QACA, you must make either matching or nonelective contributions according to the following terms. How to amend taxes Matching contributions. How to amend taxes You must make matching contributions on behalf of each non-highly compensated employee in the following amounts. How to amend taxes An amount equal to 100% of elective deferrals, up to 1% of compensation. How to amend taxes An amount equal to 50% of elective deferrals, from 1% up to 6% of compensation. How to amend taxes Other formulas may be used as long as they are at least as favorable to non-highly compensated employees. How to amend taxes The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. How to amend taxes Nonelective contributions. How to amend taxes You must make nonelective contributions on behalf of every non-highly compensated employee eligible to participate in the plan, regardless of whether they elected to participate, in an amount equal to at least 3% of their compensation. How to amend taxes Vesting requirements. How to amend taxes   All accrued benefits attributed to matching or nonelective contributions under the QACA must be 100% vested for all employees who complete 2 years of service. How to amend taxes These contributions are subject to special withdrawal restrictions, discussed later. How to amend taxes Notice requirements. How to amend taxes   Each employee eligible to participate in the QACA must receive written notice of their rights and obligations under the QACA, within a reasonable period before each plan year. How to amend taxes The notice must be written in a manner calculated to be understood by the average employee, and it must be accurate and comprehensive. How to amend taxes The notice must explain their right to elect not to have elective contributions made on their behalf, or to have contributions made at a different percentage than the default percentage. How to amend taxes Additionally, the notice must explain how contributions will be invested in the absence of any investment election by the employee. How to amend taxes The employee must have a reasonable period of time after receiving the notice to make such contribution and investment elections prior to the first contributions under the QACA. How to amend taxes Treatment of Excess Deferrals If the total of an employee's deferrals is more than the limit for 2013, the employee can have the difference (called an excess deferral) paid out of any of the plans that permit these distributions. How to amend taxes He or she must notify the plan by April 15, 2014 (or an earlier date specified in the plan), of the amount to be paid from each plan. How to amend taxes The plan must then pay the employee that amount, plus earnings on the amount through the end of 2013, by April 15, 2014. How to amend taxes Excess withdrawn by April 15. How to amend taxes   If the employee takes out the excess deferral by April 15, 2014, it is not reported again by including it in the employee's gross income for 2014. How to amend taxes However, any income earned in 2013 on the excess deferral taken out is taxable in the tax year in which it is taken out. How to amend taxes The distribution is not subject to the additional 10% tax on early distributions. How to amend taxes   If the employee takes out part of the excess deferral and the income on it, the distribution is treated as made proportionately from the excess deferral and the income. How to amend taxes   Even if the employee takes out the excess deferral by April 15, the amount will be considered for purposes of nondiscrimination testing requirements of the plan, unless the distributed amount is for a non-highly compensated employee who participates in only one employer's 401(k) plan or plans. How to amend taxes Excess not withdrawn by April 15. How to amend taxes   If the employee does not take out the excess deferral by April 15, 2014, the excess, though taxable in 2013, is not included in the employee's cost basis in figuring the taxable amount of any eventual distributions under the plan. How to amend taxes In effect, an excess deferral left in the plan is taxed twice, once when contributed and again when distributed. How to amend taxes Also, if the employee's excess deferral is allowed to stay in the plan and the employee participates in no other employer's plan, the plan can be disqualified. How to amend taxes Reporting corrective distributions on Form 1099-R. How to amend taxes   Report corrective distributions of excess deferrals (including any earnings) on Form 1099-R. How to amend taxes For specific information about reporting corrective distributions, see the Instructions for Forms 1099-R and 5498. How to amend taxes Tax on excess contributions of highly compensated employees. How to amend taxes   The law provides tests to detect discrimination in a plan. How to amend taxes If tests, such as the actual deferral percentage test (ADP test) (see section 401(k)(3)) and the actual contribution percentage test (ACP test) (see section 401(m)(2)), show that contributions for highly compensated employees are more than the test limits for these contributions, the employer may have to pay a 10% excise tax. How to amend taxes Report the tax on Form 5330. How to amend taxes The ADP test does not apply to a safe harbor 401(k) plan (discussed next) nor to a QACA. How to amend taxes Also, the ACP test does not apply to these plans if certain additional requirements are met. How to amend taxes   The tax for the year is 10% of the excess contributions for the plan year ending in your tax year. How to amend taxes Excess contributions are elective deferrals, employee contributions, or employer matching or nonelective contributions that are more than the amount permitted under the ADP test or the ACP test. How to amend taxes   See Regulations sections 1. How to amend taxes 401(k)-2 and 1. How to amend taxes 401(m)-2 for further guidance relating to the nondiscrimination rules under sections 401(k) and 401(m). How to amend taxes    If the plan fails the ADP or ACP testing, and the failure is not corrected by the end of the next plan year, the plan can be disqualified. How to amend taxes Safe harbor 401(k) plan. How to amend taxes If you meet the requirements for a safe harbor 401(k) plan, you do not have to satisfy the ADP test, nor the ACP test, if certain additional requirements are met. How to amend taxes For your plan to be a safe harbor plan, you must meet the following conditions. How to amend taxes Matching or nonelective contributions. How to amend taxes You must make matching or nonelective contributions according to one of the following formulas. How to amend taxes Matching contributions. How to amend taxes You must make matching contributions according to the following rules. How to amend taxes You must contribute an amount equal to 100% of each non-highly compensated employee's elective deferrals, up to 3% of compensation. How to amend taxes You must contribute an amount equal to 50% of each non-highly compensated employee's elective deferrals, from 3% up to 5% of compensation. How to amend taxes The rate of matching contributions for highly compensated employees, including yourself, must not exceed the rates for non-highly compensated employees. How to amend taxes Nonelective contributions. How to amend taxes You must make nonelective contributions, without regard to whether the employee made elective deferrals, on behalf of all non-highly compensated employees eligible to participate in the plan, equal to at least 3% of the employee's compensation. How to amend taxes These mandatory matching and nonelective contributions must be immediately 100% vested and are subject to special withdrawal restrictions. How to amend taxes Notice requirement. How to amend taxes You must give eligible employees written notice of their rights and obligations with regard to contributions under the plan, within a reasonable period before the plan year. How to amend taxes The other requirements for a 401(k) plan, including withdrawal and vesting rules, must also be met for your plan to qualify as a safe harbor 401(k) plan. How to amend taxes Qualified Roth Contribution Program Under this program an eligible employee can designate all or a portion of his or her elective deferrals as after-tax Roth contributions. How to amend taxes Elective deferrals designated as Roth contributions must be maintained in a separate Roth account. How to amend taxes However, unlike other elective deferrals, designated Roth contributions are not excluded from employees' gross income, but qualified distributions from a Roth account are excluded from employees' gross income. How to amend taxes Elective Deferrals Under a qualified Roth contribution program, the amount of elective deferrals that an employee may designate as a Roth contribution is limited to the maximum amount of elective deferrals excludable from gross income for the year (for 2013 and 2014, $17,500 if under age 50 and $23,000 if age 50 or over) less the total amount of the employee's elective deferrals not designated as Roth contributions. How to amend taxes Designated Roth deferrals are treated the same as pre-tax elective deferrals for most purposes, including: The annual individual elective deferral limit (total of all designated Roth contributions and traditional, pre-tax elective deferrals) of $17,500 for 2013 and 2014, with an additional $5,500 if age 50 or over for 2013 and 2014, Determining the maximum employee and employer annual contributions of the lesser of 100% of compensation or $51,000 for 2013 ($52,000 for 2014), Nondiscrimination testing, Required distributions, and Elective deferrals not taken into account for purposes of deduction limits. How to amend taxes Qualified Distributions A qualified distribution is a distribution that is made after the employee's nonexclusion period and: On or after the employee attains age   59½, On account of the employee's being disabled, or On or after the employee's death. How to amend taxes An employee's nonexclusion period for a plan is the 5-tax-year period beginning with the earlier of the following tax years. How to amend taxes The first tax year in which the employee made a contribution to his or her Roth account in the plan, or If a rollover contribution was made to the employee's designated Roth account from a designated Roth account previously established for the employee under another plan, then the first tax year the employee made a designated Roth contribution to the previously established account. How to amend taxes Rollover. How to amend taxes   Beginning September 28, 2010, a rollover from another account can be made to a designated Roth account in the same plan. How to amend taxes For additional information on these in-plan Roth rollovers, see Notice 2010-84, 2010-51 I. How to amend taxes R. How to amend taxes B. How to amend taxes 872, available at www. How to amend taxes irs. How to amend taxes gov/irb/2010-51_IRB/ar11. How to amend taxes html, and Notice 2013-74. How to amend taxes A distribution from a designated Roth account can only be rolled over to another designated Roth account or a Roth IRA. How to amend taxes Rollover amounts do not apply toward the annual deferral limit. How to amend taxes Reporting Requirements You must report a contribution to a Roth account on Form W-2 and a distribution from a Roth account on Form 1099-R. How to amend taxes See the Form W-2 and 1099-R instructions for detailed information. How to amend taxes Distributions Amounts paid to plan participants from a qualified plan are called distributions. How to amend taxes Distributions may be nonperiodic, such as lump-sum distributions, or periodic, such as annuity payments. How to amend taxes Also, certain loans may be treated as distributions. How to amend taxes See Loans Treated as Distributions in Publication 575. How to amend taxes Required Distributions A qualified plan must provide that each participant will either: Receive his or her entire interest (benefits) in the plan by the required beginning date (defined later), or Begin receiving regular periodic distributions by the required beginning date in annual amounts calculated to distribute the participant's entire interest (benefits) over his or her life expectancy or over the joint life expectancy of the participant and the designated beneficiary (or over a shorter period). How to amend taxes These distribution rules apply individually to each qualified plan. How to amend taxes You cannot satisfy the requirement for one plan by taking a distribution from another. How to amend taxes The plan must provide that these rules override any inconsistent distribution options previously offered. How to amend taxes Minimum distribution. How to amend taxes   If the account balance of a qualified plan participant is to be distributed (other than as an annuity), the plan administrator must figure the minimum amount required to be distributed each distribution calendar year. How to amend taxes This minimum is figured by dividing the account balance by the applicable life expectancy. How to amend taxes The plan administrator can use the life expectancy tables in Appendix C of Publication 590 for this purpose. How to amend taxes For more information on figuring the minimum distribution, see Tax on Excess Accumulation in Publication 575. How to amend taxes Required beginning date. How to amend taxes   Generally, each participant must receive his or her entire benefits in the plan or begin to receive periodic distributions of benefits from the plan by the required beginning date. How to amend taxes   A participant must begin to receive distributions from his or her qualified retirement plan by April 1 of the first year after the later of the following years. How to amend taxes Calendar year in which he or she reaches age 70½. How to amend taxes Calendar year in which he or she retires from employment with the employer maintaining the plan. How to amend taxes However, the plan may require the participant to begin receiving distributions by April 1 of the year after the participant reaches age 70½ even if the participant has not retired. How to amend taxes   If the participant is a 5% owner of the employer maintaining the plan, the participant must begin receiving distributions by April 1 of the first year after the calendar year in which the participant reached age 70½. How to amend taxes For more information, see Tax on Excess Accumulation in Publication 575. How to amend taxes Distributions after the starting year. How to amend taxes   The distribution required to be made by April 1 is treated as a distribution for the starting year. How to amend taxes (The starting year is the year in which the participant meets (1) or (2) above, whichever applies. How to amend taxes ) After the starting year, the participant must receive the required distribution for each year by December 31 of that year. How to amend taxes If no distribution is made in the starting year, required distributions for 2 years must be made in the next year (one by April 1 and one by December 31). How to amend taxes Distributions after participant's death. How to amend taxes   See Publication 575 for the special rules covering distributions made after the death of a participant. How to amend taxes Distributions From 401(k) Plans Generally, distributions cannot be made until one of the following occurs. How to amend taxes The employee retires, dies, becomes disabled, or otherwise severs employment. How to amend taxes The plan ends and no other defined contribution plan is established or continued. How to amend taxes In the case of a 401(k) plan that is part of a profit-sharing plan, the employee reaches age 59½ or suffers financial hardship. How to amend taxes For the rules on hardship distributions, including the limits on them, see Regulations section 1. How to amend taxes 401(k)-1(d). How to amend taxes The employee becomes eligible for a qualified reservist distribution (defined next). How to amend taxes Certain distributions listed above may be subject to the tax on early distributions discussed later. How to amend taxes Qualified reservist distributions. How to amend taxes   A qualified reservist distribution is a distribution from an IRA or an elective deferral account made after September 11, 2001, to a military reservist or a member of the National Guard who has been called to active duty for at least 180 days or for an indefinite period. How to amend taxes All or part of a qualified reservist distribution can be recontributed to an IRA. How to amend taxes The additional 10% tax on early distributions does not apply to a qualified reservist distribution. How to amend taxes Tax Treatment of Distributions Distributions from a qualified plan minus a prorated part of any cost basis are subject to income tax in the year they are distributed. How to amend taxes Since most recipients have no cost basis, a distribution is generally fully taxable. How to amend taxes An exception is a distribution that is properly rolled over as discussed under Rollover, next. How to amend taxes The tax treatment of distributions depends on whether they are made periodically over several years or life (periodic distributions) or are nonperiodic distributions. How to amend taxes See Taxation of Periodic Payments and Taxation of Nonperiodic Payments in Publication 575 for a detailed description of how distributions are taxed, including the 10-year tax option or capital gain treatment of a lump-sum distribution. How to amend taxes Note. How to amend taxes A recipient of a distribution from a designated Roth account will have a cost basis since designated Roth contributions are made on an after-tax basis. How to amend taxes Also, a distribution from a designated Roth account is entirely tax-free if certain conditions are met. How to amend taxes See Qualified distributions under Qualified Roth Contribution Program, earlier. How to amend taxes Rollover. How to amend taxes   The recipient of an eligible rollover distribution from a qualified plan can defer the tax on it by rolling it over into a traditional IRA or another eligible retirement plan. How to amend taxes However, it may be subject to withholding as discussed under Withholding requirement, later. How to amend taxes A rollover can also be made to a Roth IRA, in which case, any previously untaxed amounts are includible in gross income unless the rollover is from a designated Roth account. How to amend taxes Eligible rollover distribution. How to amend taxes   This is a distribution of all or any part of an employee's balance in a qualified retirement plan that is not any of the following. How to amend taxes A required minimum distribution. How to amend taxes See Required Distributions , earlier. How to amend taxes Any of a series of substantially equal payments made at least once a year over any of the following periods. How to amend taxes The employee's life or life expectancy. How to amend taxes The joint lives or life expectancies of the employee and beneficiary. How to amend taxes A period of 10 years or longer. How to amend taxes A hardship distribution. How to amend taxes The portion of a distribution that represents the return of an employee's nondeductible contributions to the plan. How to amend taxes See Employee Contributions , earlier, and Rollover of nontaxable amounts, next. How to amend taxes Loans treated as distributions. How to amend taxes Dividends on employer securities. How to amend taxes The cost of any life insurance coverage provided under a qualified retirement plan. How to amend taxes Similar items designated by the IRS in published guidance. How to amend taxes See, for example, the Instructions for Forms 1099-R and 5498. How to amend taxes Rollover of nontaxable amounts. How to amend taxes   You may be able to roll over the nontaxable part of a distribution to another qualified retirement plan or a section 403(b) plan, or to an IRA. How to amend taxes If the rollover is to a qualified retirement plan or a section 403(b) plan that separately accounts for the taxable and nontaxable parts of the rollover, the transfer must be made through a direct (trustee-to-trustee) rollover. How to amend taxes If the rollover is to an IRA, the transfer can be made by any rollover method. How to amend taxes Note. How to amend taxes A distribution from a designated Roth account can be rolled over to another designated Roth account or to a Roth IRA. How to amend taxes If the rollover is to a Roth IRA, it can be rolled over by any rollover method, but if the rollover is to another designated Roth account, it must be rolled over directly (trustee-to-trustee). How to amend taxes More information. How to amend taxes   For more information about rollovers, see Rollovers in Pubs. How to amend taxes 575 and 590. How to amend taxes Withholding requirement. How to amend taxes   If, during a year, a qualified plan pays to a participant one or more eligible rollover distributions (defined earlier) that are reasonably expected to total $200 or more, the payor must withhold 20% of the taxable portion of each distribution for federal income tax. How to amend taxes Exceptions. How to amend taxes   If, instead of having the distribution paid to him or her, the participant chooses to have the plan pay it directly to an IRA or another eligible retirement plan (a direct rollover), no withholding is required. How to amend taxes   If the distribution is not an eligible rollover distribution, defined earlier, the 20% withholding requirement does not apply. How to amend taxes Other withholding rules apply to distributions that are not eligible rollover distributions, such as long-term periodic distributions and required distributions (periodic or nonperiodic). How to amend taxes However, the participant can choose not to have tax withheld from these distributions. How to amend taxes If the participant does not make this choice, the following withholding rules apply. How to amend taxes For periodic distributions, withholding is based on their treatment as wages. How to amend taxes For nonperiodic distributions, 10% of the taxable part is withheld. How to amend taxes Estimated tax payments. How to amend taxes   If no income tax is withheld or not enough tax is withheld, the recipient of a distribution may have to make estimated tax payments. How to amend taxes For more information, see Withholding Tax and Estimated Tax in Publication 575. How to amend taxes Section 402(f) Notice. How to amend taxes   If a distribution is an eligible rollover distribution, as defined earlier, you must provide a written notice to the recipient that explains the following rules regarding such distributions. How to amend taxes That the distribution may be directly transferred to an eligible retirement plan and information about which distributions are eligible for this direct transfer. How to amend taxes That tax will be withheld from the distribution if it is not directly transferred to an eligible retirement plan. How to amend taxes That the distribution will not be subject to tax if transferred to an eligible retirement plan within 60 days after the date the recipient receives the distribution. How to amend taxes Certain other rules that may be applicable. How to amend taxes   Notice 2009-68, 2009-39 I. How to amend taxes R. How to amend taxes B. How to amend taxes 423, available at www. How to amend taxes irs. How to amend taxes gov/irb/2009-39_IRB/ar14. How to amend taxes html, contains two updated safe harbor section 402(f) notices that plan administrators may provide recipients of eligible rollover distributions. How to amend taxes If the plan allows in-plan Roth rollovers, the 402(f) notice must be amended to reflect this. How to amend taxes Notice 2010-84 contains guidance on how to modify a 402(f) notice for in-plan Roth rollovers. How to amend taxes Timing of notice. How to amend taxes   The notice generally must be provided no less than 30 days and no more than 180 days before the date of a distribution. How to amend taxes Method of notice. How to amend taxes   The written notice must be provided individually to each distributee of an eligible rollover distribution. How to amend taxes Posting of the notice is not sufficient. How to amend taxes However, the written requirement may be satisfied through the use of electronic media if certain additional conditions are met. How to amend taxes See Regulations section 1. How to amend taxes 401(a)-21. How to amend taxes Tax on failure to give notice. How to amend taxes   Failure to give a 402(f) notice will result in a tax of $100 for each failure, with a total not exceeding $50,000 per calendar year. How to amend taxes The tax will not be imposed if it is shown that such failure is due to reasonable cause and not to willful neglect. How to amend taxes Tax on Early Distributions If a distribution is made to an employee under the plan before he or she reaches age 59½, the employee may have to pay a 10% additional tax on the distribution. How to amend taxes This tax applies to the amount received that the employee must include in income. How to amend taxes Exceptions. How to amend taxes   The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances. How to amend taxes Made to a beneficiary (or to the estate of the employee) on or after the death of the employee. How to amend taxes Made due to the employee having a qualifying disability. How to amend taxes Made as part of a series of substantially equal periodic payments beginning after separation from service and made at least annually for the life or life expectancy of the employee or the joint lives or life expectancies of the employee and his or her designated beneficiary. How to amend taxes (The payments under this exception, except in the case of death or disability, must continue for at least 5 years or until the employee reaches age 59½, whichever is the longer period. How to amend taxes ) Made to an employee after separation from service if the separation occurred during o
Print - Click this link to Print this page

SOI Tax Stats - S Corporation Statistics

Return to Tax Stats home page

Excel Viewer

Adobe® Reader

Certain corporations elect to be treated as S corporations for Federal tax purposes. Electing to be treated as an S corporation allows income to flow through the corporation without being taxed until it is claimed as income by the shareholders. This avoids double taxation of corporate income. Here you will find data tables and SOI Bulletin articles concerning 1120S corporations.

Featured Areas:

Integrated Business Data: Tables and articles that combine the annual SOI cross-sectional studies of corporation (C and S corporations), partnership, and nonfarm sole proprietorship data.

S Corporation Returns
Article by Kelly Luttrel, SOI
S corporations continue to be the most prevalent type of corporation. For Tax Year 2003, about 61.9 percent of all corporations filed a Form 1120S. The total number of returns filed by S corporations for Tax Year 2003 increased 5.9 percent to nearly 3.3 million, from nearly 3.2 million reported in Tax Year 2002. S corporations became the most common corporate entity type in 1997.

2003
2002
2001
2000
1999
1998
1997
1996
1995

The following are available as Microsoft Excel® files. A free Excel viewer is available for download, if needed.

Table 1: Returns of Active Corporations, Form 1120S
Data Presented: Total receipts and deductions, portfolio income, rental income, and total net income
Classified By:

Major industry


Table 2: Returns with Net Income, Form 1120S

Data Presented: Total receipts and deductions, portfolio income, rental income, and total net income
Classified By: Major industry

Table 3: Returns of Active Corporations, Form 1120S
Data Presented: Balance sheet items
Classified By: Major industry
  Note: Table 7 is presented in lieu of Table 3; Table 7 provides both balance sheet and income statement items

Table 4: Returns of Active Corporations, Form 1120S
Data Presented: Total receipts and deductions, portfolio income, rental income, and total net income
Classified By: Size of business receipts and industrial sector

Table 5: Returns of Active Corporations, Form 1120S
Data Presented: Rental real estate income.
Classified By: Selected industrial sector and major industry

Table 6: Returns of Active Corporations, Form 1120S
Data Presented: Total receipts and deductions, portfolio income, rental income, and total net income
Classified By: Number of shareholders

Table 7: Returns of Active Corporations, Form 1120S
Data Presented: Balance sheet and income statement items
Classified By: Major industry

Table 8: Returns With Net Income from a Trade or Business, Form 1120S
Data Presented: Balance sheet and income statement items

 Classified By:

Major industry


S Corporations, Selected Figures

Figures:

 


Figure A: S Corporation Total Net Income (Less Deficit)

Tax Years: 2007  2006  2005  2004


Figure B: Number of Form 1120 Series Returns, by Type of Corporation

Tax Years: 2007  2006  2005  2004


Figure C: S Corporation Annual Percentage Increase/Decrease

Tax Years:             2006  2005  2004
  Note: Figure C will no longer be produced. An alternative calculation is being evaluated and results will be posted as the review process dictates.


Figure D: S Corporation Total Assets, Receipts, Net Income, by Industrial Sector

Tax Years: 2007  2006  2005  2004


Figure E: Shares of S Corporation Total Receipts, by Industrial Sector

Tax Years: 2007  2006  2005  2004


Figure F: Shares of S Corporation Total Assets, by Industrial Sector

Tax Years: 2007  2006  2005  2004


Figure G: S Corporation Number of Returns, by Number of Shareholders and Industrial Sector

Tax Years: 2007  2006  2005  2004


Figure H: S Corporation Taxes

Tax Years: 2007  2006  2005  2004

 

Return to Tax Stats home page

Page Last Reviewed or Updated: 22-Jan-2013

The How To Amend Taxes

How to amend taxes Publication 915 - Main Content Table of Contents Are Any of Your Benefits Taxable?Worksheet A. How to amend taxes Exemption from withholding. How to amend taxes 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. How to amend taxes When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. How to amend taxes S. How to amend taxes 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. How to amend taxes Children's benefits. How to amend taxes   The rules in this publication apply to benefits received by children. How to amend taxes See Who is taxed , later. How to amend taxes The SSA issues Form SSA-1099 and Form SSA-1042S. How to amend taxes The RRB issues Form RRB-1099 and Form RRB-1042S. How to amend taxes These forms (tax statements) report the amounts paid and repaid, and taxes withheld for a tax year. How to amend taxes You may receive more than one of these forms for the same tax year. How to amend taxes See the Appendix at the end of this publication for more information. How to amend taxes Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. How to amend taxes The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is an error in the original. How to amend taxes 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. How to amend taxes 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. How to amend taxes Figuring total income. How to amend taxes   To figure the total of one-half of your benefits plus your other income, use Worksheet A, discussed later. How to amend taxes If the total is more than your base amount, part of your benefits may be taxable. How to amend taxes   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. How to amend taxes 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. How to amend taxes 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. How to amend taxes If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. How to amend taxes Base amount. How to amend taxes   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. How to amend taxes Worksheet A. How to amend taxes   You can use Worksheet A to figure the amount of income to compare with your base amount. How to amend taxes This is a quick way to check whether some of your benefits may be taxable. How to amend taxes     Worksheet A. How to amend taxes A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. How to amend taxes Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. How to amend taxes Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. How to amend taxes (If you received more than one form, combine the amounts from box 5 and enter the total. How to amend taxes ) A. How to amend taxes   Note. How to amend taxes If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. How to amend taxes B. How to amend taxes Enter one-half of the amount on line A B. How to amend taxes   C. How to amend taxes Enter your taxable pensions, wages, interest, dividends, and other taxable income C. How to amend taxes   D. How to amend taxes Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. How to amend taxes   E. How to amend taxes Add lines B, C, and D E. How to amend taxes   Note. How to amend taxes Compare the amount on line E to your base amount for your filing status. How to amend taxes 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. How to amend taxes If the amount on line E is more than your base amount, some of your benefits may be taxable. How to amend taxes You need to complete Worksheet 1, shown later. How to amend taxes 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 . How to amend taxes   Example. How to amend taxes You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. How to amend taxes In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. How to amend taxes Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. How to amend taxes You also received a taxable pension of $22,800 and interest income of $500. How to amend taxes You did not have any tax-exempt interest income. How to amend taxes 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. How to amend taxes   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. How to amend taxes     Filled-in Worksheet A. How to amend taxes A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. How to amend taxes Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. How to amend taxes Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. How to amend taxes (If you received more than one form, combine the amounts from box 5 and enter the total. How to amend taxes ) A. How to amend taxes $11,000 Note. How to amend taxes If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. How to amend taxes B. How to amend taxes Enter one-half of the amount on line A B. How to amend taxes 5,500 C. How to amend taxes Enter your taxable pensions, wages, interest, dividends, and other taxable income C. How to amend taxes 23,300 D. How to amend taxes Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. How to amend taxes -0- E. How to amend taxes Add lines B, C, and D E. How to amend taxes $28,800 Note. How to amend taxes Compare the amount on line E to your base amount for your filing status. How to amend taxes 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. How to amend taxes If the amount on line E is more than your base amount, some of your benefits may be taxable. How to amend taxes You need to complete Worksheet 1, shown later. How to amend taxes 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 . How to amend taxes   Who is taxed. How to amend taxes   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. How to amend taxes 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. How to amend taxes 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. How to amend taxes Repayment of benefits. How to amend taxes   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. How to amend taxes It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. How to amend taxes If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. How to amend taxes   Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. How to amend taxes Your repayments are shown in box 4. How to amend taxes The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). How to amend taxes Use the amount in box 5 to figure whether any of your benefits are taxable. How to amend taxes Example. How to amend taxes In 2012, you received $3,000 in social security benefits, and in 2013 you received $2,700. How to amend taxes In March 2013, SSA notified you that you should have received only $2,500 in benefits in 2012. How to amend taxes During 2013, you repaid $500 to SSA. How to amend taxes The Form SSA-1099 you received for 2013 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). How to amend taxes The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500). How to amend taxes Tax withholding and estimated tax. How to amend taxes   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. How to amend taxes If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Statement. How to amend taxes   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. How to amend taxes For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. How to amend taxes U. How to amend taxes S. How to amend taxes citizens residing abroad. How to amend taxes   U. How to amend taxes S. How to amend taxes citizens who are residents of the following countries are exempt from U. How to amend taxes S. How to amend taxes tax on their benefits. How to amend taxes Canada. How to amend taxes Egypt. How to amend taxes Germany. How to amend taxes Ireland. How to amend taxes Israel. How to amend taxes Italy. How to amend taxes (You must also be a citizen of Italy for the exemption to apply. How to amend taxes ) Romania. How to amend taxes United Kingdom. How to amend taxes   The SSA will not withhold U. How to amend taxes S. How to amend taxes tax from your benefits if you are a U. How to amend taxes S. How to amend taxes citizen. How to amend taxes   The RRB will withhold U. How to amend taxes S. How to amend taxes tax from your benefits unless you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency information. How to amend taxes 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. How to amend taxes Contact the RRB to get this form. How to amend taxes Lawful permanent residents. How to amend taxes   For U. How to amend taxes S. How to amend taxes 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. How to amend taxes Social security benefits paid to a green card holder are not subject to 30% withholding. How to amend taxes 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. How to amend taxes SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. How to amend taxes 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. How to amend taxes 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. How to amend taxes S. How to amend taxes lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. How to amend taxes I am filing a U. How to amend taxes S. How to amend taxes income tax return for the tax year as a resident alien reporting all of my worldwide income. How to amend taxes I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien. How to amend taxes ” Nonresident aliens. How to amend taxes   A nonresident alien is an individual who is not a citizen or resident of the United States. How to amend taxes If you are a nonresident alien, the rules discussed in this publication do not apply to you. How to amend taxes Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. How to amend taxes You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. How to amend taxes These forms will also show the tax rate and the amount of tax withheld from your benefits. How to amend taxes   Under tax treaties with the following countries, residents of these countries are exempt from U. How to amend taxes S. How to amend taxes tax on their benefits. How to amend taxes Canada. How to amend taxes Egypt. How to amend taxes Germany. How to amend taxes Ireland. How to amend taxes Israel. How to amend taxes Italy. How to amend taxes Japan. How to amend taxes Romania. How to amend taxes United Kingdom. How to amend taxes   Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U. How to amend taxes S. How to amend taxes tax if the benefits are for services performed for the United States, its subdivisions, or local government authorities. How to amend taxes   If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate. How to amend taxes   For more information on whether you are a nonresident alien, see Publication 519, U. How to amend taxes S. How to amend taxes Tax Guide for Aliens. How to amend taxes Exemption from withholding. How to amend taxes   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. How to amend taxes S. How to amend taxes tax from your benefits. How to amend taxes   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. How to amend taxes Contact the RRB to get this form. How to amend taxes Canadian or German social security benefits paid to U. How to amend taxes S. How to amend taxes residents. How to amend taxes   Under income tax treaties with Canada and Germany, social security benefits paid by those countries to U. How to amend taxes S. How to amend taxes residents are treated for U. How to amend taxes S. How to amend taxes income tax purposes as if they were paid under the social security legislation of the United States. How to amend taxes If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1, shown later. How to amend taxes How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. How to amend taxes You cannot use Form 1040EZ. How to amend taxes Reporting on Form 1040. How to amend taxes   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. How to amend taxes 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. How to amend taxes Reporting on Form 1040A. How to amend taxes   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. How to amend taxes 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. How to amend taxes Benefits not taxable. How to amend taxes   If you are filing Form 1040EZ, do not report any benefits on your tax return. How to amend taxes 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. How to amend taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to amend taxes 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. How to amend taxes 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. How to amend taxes Generally, the higher that total amount, the greater the taxable part of your benefits. How to amend taxes Maximum taxable part. How to amend taxes   Generally, up to 50% of your benefits will be taxable. How to amend taxes However, up to 85% of your benefits can be taxable if either of the following situations applies to you. How to amend taxes 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). How to amend taxes You are married filing separately and lived with your spouse at any time during 2013. How to amend taxes Which worksheet to use. How to amend taxes   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. How to amend taxes You can use either that worksheet or Worksheet 1 in this publication, unless any of the following situations applies to you. How to amend taxes You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. How to amend taxes 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. How to amend taxes Situation (1) does not apply and you take an exclusion for interest from qualified U. How to amend taxes S. How to amend taxes 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. How to amend taxes In this situation, you must use Worksheet 1 in this publication to figure your taxable benefits. How to amend taxes You received a lump-sum payment for an earlier year. How to amend taxes In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in this publication. How to amend taxes See Lump-Sum Election , later. How to amend taxes Examples A few examples you can use as a guide to figure the taxable part of your benefits follow. How to amend taxes Filled-in Worksheet 1. How to amend taxes 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. How to amend taxes 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). How to amend taxes None of your benefits are taxable for 2013. How to amend taxes For more information, see Repayments More Than Gross Benefits . How to amend taxes If you are filing Form 8815, Exclusion of Interest From Series EE and I U. How to amend taxes S. How to amend taxes 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. How to amend taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. How to amend taxes 1. How to amend taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to amend taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. How to amend taxes $5,980         2. How to amend taxes Enter one-half of line 1 2. How to amend taxes 2,990     3. How to amend taxes 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. How to amend taxes 28,990     4. How to amend taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. How to amend taxes -0-     5. How to amend taxes 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. How to amend taxes -0-     6. How to amend taxes Combine lines 2, 3, 4, and 5 6. How to amend taxes 31,980     7. How to amend taxes 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. How to amend taxes  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. How to amend taxes -0-     8. How to amend taxes Is the amount on line 7 less than the amount on line 6?             No. How to amend taxes None of your social security benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to amend taxes             Yes. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes 31,980     9. How to amend taxes 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. How to amend taxes 25,000       Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 9 less than the amount on line 8?             No. How to amend taxes None of your benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to amend taxes 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. How to amend taxes             Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes 6,980     11. How to amend taxes 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. How to amend taxes 9,000     12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes -0-     13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes 6,980     14. How to amend taxes Enter one-half of line 13 14. How to amend taxes 3,490     15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes 2,990     16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes -0-     17. How to amend taxes Add lines 15 and 16 17. How to amend taxes 2,990     18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes 5,083     19. How to amend taxes Taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18. How to amend taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. How to amend taxes $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. How to amend taxes         Example 1. How to amend taxes George White is single and files Form 1040 for 2013. How to amend taxes 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. How to amend taxes He received a Form SSA-1099 in January 2014 that shows his net social security benefits of $5,980 in box 5. How to amend taxes   To figure his taxable benefits, George completes Worksheet 1, shown below. How to amend taxes On line 20a of his Form 1040, George enters his net benefits of $5,980. How to amend taxes On line 20b, he enters his taxable benefits of $2,990. How to amend taxes Example 2. How to amend taxes Ray and Alice Hopkins file a joint return on Form 1040A for 2013. How to amend taxes Ray is retired and received a fully taxable pension of $15,500. How to amend taxes He also received social security benefits and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. How to amend taxes Alice worked during the year and had wages of $14,000. How to amend taxes She made a deductible payment to her IRA account of $1,000. How to amend taxes Ray and Alice have two savings accounts with a total of $250 in taxable interest income. How to amend taxes They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. How to amend taxes They find none of Ray's social security benefits are taxable. How to amend taxes On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. How to amend taxes Filled-in Worksheet 1. How to amend taxes 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. How to amend taxes 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). How to amend taxes None of your benefits are taxable for 2013. How to amend taxes For more information, see Repayments More Than Gross Benefits . How to amend taxes If you are filing Form 8815, Exclusion of Interest From Series EE and I U. How to amend taxes S. How to amend taxes 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. How to amend taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. How to amend taxes 1. How to amend taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to amend taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. How to amend taxes $5,600         2. How to amend taxes Enter one-half of line 1 2. How to amend taxes 2,800     3. How to amend taxes 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. How to amend taxes 29,750     4. How to amend taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. How to amend taxes -0-     5. How to amend taxes 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. How to amend taxes -0-     6. How to amend taxes Combine lines 2, 3, 4, and 5 6. How to amend taxes 32,550     7. How to amend taxes 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. How to amend taxes  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. How to amend taxes 1,000     8. How to amend taxes Is the amount on line 7 less than the amount on line 6?             No. How to amend taxes None of your social security benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to amend taxes             Yes. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes 31,550     9. How to amend taxes 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. How to amend taxes 32,000       Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 9 less than the amount on line 8?             No. How to amend taxes None of your benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to amend taxes 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. How to amend taxes             Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes       11. How to amend taxes 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. How to amend taxes       12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes       13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes       14. How to amend taxes Enter one-half of line 13 14. How to amend taxes       15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes       16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes       17. How to amend taxes Add lines 15 and 16 17. How to amend taxes       18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes       19. How to amend taxes Taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18. How to amend taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. How to amend taxes         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. How to amend taxes         Example 3. How to amend taxes Joe and Betty Johnson file a joint return on Form 1040 for 2013. How to amend taxes Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. How to amend taxes Joe's Form RRB-1099 shows $10,000 in box 5. How to amend taxes Betty is a retired government worker and received a fully taxable pension of $38,000. How to amend taxes They had $2,300 in taxable interest income plus interest of $200 on a qualified U. How to amend taxes S. How to amend taxes savings bond. How to amend taxes The savings bond interest qualified for the exclusion. How to amend taxes They figure their taxable benefits by completing Worksheet 1 below. How to amend taxes Because they have qualified U. How to amend taxes S. How to amend taxes 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. How to amend taxes On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). How to amend taxes 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. How to amend taxes (See Maximum taxable part under How Much Is Taxable earlier. How to amend taxes ) Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. How to amend taxes Filled-in Worksheet 1. How to amend taxes 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. How to amend taxes 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). How to amend taxes None of your benefits are taxable for 2013. How to amend taxes For more information, see Repayments More Than Gross Benefits . How to amend taxes If you are filing Form 8815, Exclusion of Interest From Series EE and I U. How to amend taxes S. How to amend taxes 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. How to amend taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. How to amend taxes 1. How to amend taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to amend taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. How to amend taxes $10,000         2. How to amend taxes Enter one-half of line 1 2. How to amend taxes 5,000     3. How to amend taxes 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. How to amend taxes 40,500     4. How to amend taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. How to amend taxes -0-     5. How to amend taxes 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. How to amend taxes -0-     6. How to amend taxes Combine lines 2, 3, 4, and 5 6. How to amend taxes 45,500     7. How to amend taxes 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. How to amend taxes  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. How to amend taxes -0-     8. How to amend taxes Is the amount on line 7 less than the amount on line 6?             No. How to amend taxes None of your social security benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to amend taxes             Yes. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes 45,500     9. How to amend taxes 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. How to amend taxes 32,000       Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 9 less than the amount on line 8?             No. How to amend taxes None of your benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to amend taxes 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. How to amend taxes             Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes 13,500     11. How to amend taxes 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. How to amend taxes 12,000     12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes 1,500     13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes 12,000     14. How to amend taxes Enter one-half of line 13 14. How to amend taxes 6,000     15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes 5,000     16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes 1,275     17. How to amend taxes Add lines 15 and 16 17. How to amend taxes 6,275     18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes 8,500     19. How to amend taxes Taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18. How to amend taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. How to amend taxes $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. How to amend taxes         Filled-in Worksheet 1. How to amend taxes 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. How to amend taxes 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). How to amend taxes None of your benefits are taxable for 2013. How to amend taxes For more information, see Repayments More Than Gross Benefits . How to amend taxes If you are filing Form 8815, Exclusion of Interest From Series EE and I U. How to amend taxes S. How to amend taxes 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. How to amend taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. How to amend taxes 1. How to amend taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to amend taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. How to amend taxes $4,000         2. How to amend taxes Enter one-half of line 1 2. How to amend taxes 2,000     3. How to amend taxes 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. How to amend taxes 8,000     4. How to amend taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. How to amend taxes -0-     5. How to amend taxes 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. How to amend taxes -0-     6. How to amend taxes Combine lines 2, 3, 4, and 5 6. How to amend taxes 10,000     7. How to amend taxes 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. How to amend taxes  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. How to amend taxes -0-     8. How to amend taxes Is the amount on line 7 less than the amount on line 6?             No. How to amend taxes None of your social security benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to amend taxes             Yes. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes 10,000     9. How to amend taxes 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. How to amend taxes         Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 9 less than the amount on line 8?             No. How to amend taxes None of your benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to amend taxes 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. How to amend taxes             Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes       11. How to amend taxes 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. How to amend taxes       12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes       13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes       14. How to amend taxes Enter one-half of line 13 14. How to amend taxes       15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes       16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes       17. How to amend taxes Add lines 15 and 16 17. How to amend taxes 8,500     18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes 3,400     19. How to amend taxes Taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18. How to amend taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. How to amend taxes $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. How to amend taxes         Example 4. How to amend taxes Bill and Eileen Jones are married and live together, but file separate Form 1040 returns for 2013. How to amend taxes Bill earned $8,000 during 2013. How to amend taxes The only other income he had for the year was $4,000 net social security benefits (box 5 of his Form SSA-1099). How to amend taxes Bill figures his taxable benefits by completing Worksheet 1 below. How to amend taxes 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. How to amend taxes See How Much Is Taxable earlier. How to amend taxes Bill enters $4,000 on his Form 1040, line 20a, and $3,400 on Form 1040, line 20b. How to amend taxes 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. How to amend taxes 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. How to amend taxes No part of the lump-sum death benefit is subject to tax. How to amend taxes Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. How to amend taxes 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. How to amend taxes You can elect this method if it lowers your taxable benefits. How to amend taxes 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. How to amend taxes Then you subtract any taxable benefits for that year that you previously reported. How to amend taxes The remainder is the taxable part of the lump-sum payment. How to amend taxes Add it to the taxable part of your benefits for 2013 (figured without the lump-sum payment for the earlier year). How to amend taxes Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. How to amend taxes Do not file an amended return for the earlier year. How to amend taxes Will the lump-sum election method lower your taxable benefits?   To find out, take the following steps. How to amend taxes Complete Worksheet 1 in this publication. How to amend taxes Complete Worksheet 2 and Worksheet 3 as appropriate. How to amend taxes Use Worksheet 2 if your lump-sum payment was for a year after 1993. How to amend taxes Use Worksheet 3 if it was for 1993 or an earlier year. How to amend taxes Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received the lump-sum payment. How to amend taxes Complete Worksheet 4. How to amend taxes Compare the taxable benefits on line 19 of Worksheet 1 with the taxable benefits on line 21 of Worksheet 4. How to amend taxes 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. How to amend taxes Making the election. How to amend taxes   If you elect to report your taxable benefits under the lump-sum election method, follow the instructions at the bottom of Worksheet 4. How to amend taxes Do not attach the completed worksheets to your return. How to amend taxes Keep them with your records. How to amend taxes    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. How to amend taxes Lump-sum payment reported on Form SSA-1099 or RRB-1099. How to amend taxes   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. How to amend taxes That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. How to amend taxes The form will also show the year (or years) the payment is for. How to amend taxes However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2011. How to amend taxes You must contact the RRB for a breakdown by year for any amount shown in box 9. How to amend taxes Example Jane Jackson is single. How to amend taxes In 2012 she applied for social security disability benefits but was told she was ineligible. How to amend taxes She appealed the decision and won. How to amend taxes In 2013, she received a lump-sum payment of $6,000, of which $2,000 was for 2012 and $4,000 was for 2013. How to amend taxes Jane also received $5,000 in social security benefits in 2013, so her total benefits in 2013 were $11,000. How to amend taxes Jane's other income for 2012 and 2013 is as follows. How to amend taxes   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. How to amend taxes She does not need to complete Worksheet 3 because her lump-sum payment was for years after 1993. How to amend taxes Jane completes Worksheet 1 to find the amount of her taxable benefits for 2013 under the regular method. How to amend taxes She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2012 under the lump-sum election method. How to amend taxes She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits. How to amend taxes After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21, and Worksheet 1, line 19. How to amend taxes Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. How to amend taxes To do this, she prints “LSE” to the left of Form 1040, line 20a. How to amend taxes She then enters $11,000 on Form 1040, line 20a, and her taxable benefits of $2,500 on line 20b. How to amend taxes Jane's filled-in worksheets (1, 2, and 4) follow. How to amend taxes Jane Jackson's Filled-in Worksheet 1. How to amend taxes 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. How to amend taxes 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). How to amend taxes None of your benefits are taxable for 2013. How to amend taxes For more information, see Repayments More Than Gross Benefits . How to amend taxes If you are filing Form 8815, Exclusion of Interest From Series EE and I U. How to amend taxes S. How to amend taxes 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. How to amend taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. How to amend taxes 1. How to amend taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to amend taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. How to amend taxes $11,000         2. How to amend taxes Enter one-half of line 1 2. How to amend taxes 5,500     3. How to amend taxes 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. How to amend taxes 25,500     4. How to amend taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. How to amend taxes -0-     5. How to amend taxes 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. How to amend taxes -0-     6. How to amend taxes Combine lines 2, 3, 4, and 5 6. How to amend taxes 31,000     7. How to amend taxes 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. How to amend taxes  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. How to amend taxes -0-     8. How to amend taxes Is the amount on line 7 less than the amount on line 6?             No. How to amend taxes None of your social security benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to amend taxes             Yes. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes 31,000     9. How to amend taxes 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. How to amend taxes 25,000       Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 9 less than the amount on line 8?             No. How to amend taxes None of your benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to amend taxes 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. How to amend taxes             Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes 6,000     11. How to amend taxes 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. How to amend taxes 9,000     12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes -0-     13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes 6,000     14. How to amend taxes Enter one-half of line 13 14. How to amend taxes 3,000     15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes 3,000     16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes -0-     17. How to amend taxes Add lines 15 and 16 17. How to amend taxes 3,000     18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes 9,350     19. How to amend taxes Taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18. How to amend taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. How to amend taxes $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. How to amend taxes         Jane Jackson's Filled-in Worksheet 2. How to amend taxes Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 2012 1. How to amend taxes 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. How to amend taxes $2,000           Note. How to amend taxes If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. How to amend taxes Otherwise, go on to line 2. How to amend taxes             2. How to amend taxes Enter one-half of line 1 2. How to amend taxes 1,000   3. How to amend taxes Enter your adjusted gross income for the earlier year 3. How to amend taxes 23,000   4. How to amend taxes Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. How to amend taxes S. How to amend taxes 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. How to amend taxes -0-   5. How to amend taxes Enter any tax-exempt interest received in the earlier year 5. How to amend taxes -0-   6. How to amend taxes Add lines 2 through 5 6. How to amend taxes 24,000   7. How to amend taxes Enter your taxable benefits for the earlier year that you previously reported 7. How to amend taxes -0-   8. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes 24,000   9. How to amend taxes 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. How to amend taxes 25,000     Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 8 more than the amount on line 9?       No. How to amend taxes Skip lines 10 through 20 and enter -0- on line 21. How to amend taxes       Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes     11. How to amend taxes 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. How to amend taxes     12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes     13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes     14. How to amend taxes Enter one-half of line 13 14. How to amend taxes     15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes     16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes     17. How to amend taxes Add lines 15 and 16 17. How to amend taxes     18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes     19. How to amend taxes Refigured taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18 19. How to amend taxes     20. How to amend taxes Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. How to amend taxes     21. How to amend taxes Additional taxable benefits. How to amend taxes Subtract line 20 from line 19. How to amend taxes Also enter this amount on Worksheet 4, line 20 21. How to amend taxes -0-     Do not file an amended return for this earlier year. How to amend taxes Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. How to amend taxes   Jane Jackson's Filled-in Worksheet 4. How to amend taxes 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. How to amend taxes 1. How to amend taxes 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. How to amend taxes $9,000         Note. How to amend taxes If line 1 is zero or less, skip lines 2 through 18, enter -0- on line 19 and go to line 20. How to amend taxes Otherwise, go on to line 2. How to amend taxes           2. How to amend taxes Enter one-half of line 1 2. How to amend taxes 4,500   3. How to amend taxes Enter the amount from Worksheet 1, line 3 3. How to amend taxes 25,500   4. How to amend taxes Enter the amount from Worksheet 1, line 4 4. How to amend taxes -0-   5. How to amend taxes Enter the amount from Worksheet 1, line 5 5. How to amend taxes -0-   6. How to amend taxes Combine lines 2, 3, 4, and 5 6. How to amend taxes 30,000   7. How to amend taxes Enter the amount from Worksheet 1, line 7 7. How to amend taxes -0-   8. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes 30,000   9. How to amend taxes Enter the amount from Worksheet 1, line 9. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then, go to line 18 9. How to amend taxes 25,000   10. How to amend taxes Is the amount on line 8 more than the amount on line 9? No. How to amend taxes Skip lines 10 through 18, enter -0- on line 19, and go to line 20. How to amend taxes  Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes 5,000   11. How to amend taxes Enter the amount from Worksheet 1, line 11 11. How to amend taxes 9,000   12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes -0-   13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes 5,000   14. How to amend taxes Enter one-half of line 13 14. How to amend taxes 2,500   15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes 2,500   16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes -0-   17. How to amend taxes Add lines 15 and 16 17. How to amend taxes 2,500   18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes 7,650   19. How to amend taxes Enter the smaller of line 17 or line 18 19. How to amend taxes 2,500   20. How to amend taxes 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. How to amend taxes -0-   21. How to amend taxes Taxable benefits under lump-sum election method. How to amend taxes Add lines 19 and 20 21. How to amend taxes $2,500   Next. How to amend taxes Is line 21 above smaller than Worksheet 1, line 19? No. How to amend taxes Do not use this method to figure your taxable benefits. How to amend taxes Follow the instructions on Worksheet 1 to report your benefits. How to amend taxes  Yes. How to amend taxes You can elect to report your taxable benefits under this method. How to amend taxes To elect this method:     Enter “LSE” to the left of Form 1040, line 20a, or Form 1040A, line 14a. How to amend taxes If line 21 above is zero, follow the instructions in line 10 for “No” on Worksheet 1. How to amend taxes Otherwise: Enter the amount from Worksheet 1, line 1, on Form 1040, line 20a, or on Form 1040A, line 14a. How to amend taxes Enter the amount from line 21 above on Form 1040, line 20b, or on Form 1040A, line 14b. How to amend taxes 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. How to amend taxes   Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. How to amend taxes Disability payments. How to amend taxes   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. How to amend taxes 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. How to amend taxes If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. How to amend taxes 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. How to amend taxes Legal expenses. How to amend taxes   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. How to amend taxes   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. How to amend taxes 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. How to amend taxes 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. How to amend taxes Do not use Worksheet 1 in this case. How to amend taxes 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. How to amend taxes If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. How to amend taxes Joint return. How to amend taxes   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. How to amend taxes You do this to get your net benefits when figuring if your combined benefits are taxable. How to amend taxes Example. How to amend taxes John and Mary file a joint return for 2013. How to amend taxes John received Form SSA-1099 showing $3,000 in box 5. How to amend taxes Mary also received Form SSA-1099 and the amount in box 5 was ($500). How to amend taxes 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. How to amend taxes Repayment of benefits received in an earlier year. How to amend taxes   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. How to amend taxes Deduction $3,000 or less. How to amend taxes   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. How to amend taxes Claim it on Schedule A (Form 1040), line 23. How to amend taxes Deduction more than $3,000. How to amend taxes   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. How to amend taxes Figure your tax for 2013 in the following steps: Figure the tax without the itemized deduction included on Schedule A, line 28. How to amend taxes 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. How to amend taxes Then refigure the tax for that year. How to amend taxes Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. How to amend taxes Subtract the result in (c) from the result in (a). How to amend taxes   Compare the tax figured in methods (1) and (2). How to amend taxes Your tax for 2013 is the smaller of the two amounts. How to amend taxes If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. How to amend taxes If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. How to amend taxes Check box d and enter “I. How to amend taxes R. How to amend taxes C. How to amend taxes 1341” in the space next to that box. How to amend taxes If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. How to amend taxes 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). How to amend taxes Worksheet 1. How to amend taxes 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. How to amend taxes 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). How to amend taxes None of your benefits are taxable for 2013. How to amend taxes For more information, see Repayments More Than Gross Benefits . How to amend taxes If you are filing Form 8815, Exclusion of Interest From Series EE and I U. How to amend taxes S. How to amend taxes 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. How to amend taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. How to amend taxes 1. How to amend taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to amend taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. How to amend taxes           2. How to amend taxes Enter one-half of line 1 2. How to amend taxes       3. How to amend taxes 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. How to amend taxes       4. How to amend taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. How to amend taxes       5. How to amend taxes 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. How to amend taxes       6. How to amend taxes Combine lines 2, 3, 4, and 5 6. How to amend taxes       7. How to amend taxes 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. How to amend taxes  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. How to amend taxes       8. How to amend taxes Is the amount on line 7 less than the amount on line 6?             No. How to amend taxes None of your social security benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to amend taxes             Yes. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes       9. How to amend taxes 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. How to amend taxes         Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 9 less than the amount on line 8?             No. How to amend taxes None of your benefits are taxable. How to amend taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to amend taxes 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. How to amend taxes             Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes       11. How to amend taxes 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. How to amend taxes       12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes       13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes       14. How to amend taxes Enter one-half of line 13 14. How to amend taxes       15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes       16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes       17. How to amend taxes Add lines 15 and 16 17. How to amend taxes       18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes       19. How to amend taxes Taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18. How to amend taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. How to amend taxes         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. How to amend taxes         Worksheet 2. How to amend taxes Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 1. How to amend taxes 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. How to amend taxes             Note. How to amend taxes If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. How to amend taxes Otherwise, go on to line 2. How to amend taxes             2. How to amend taxes Enter one-half of line 1 2. How to amend taxes     3. How to amend taxes Enter your adjusted gross income for the earlier year 3. How to amend taxes     4. How to amend taxes Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. How to amend taxes S. How to amend taxes 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. How to amend taxes     5. How to amend taxes Enter any tax-exempt interest received in the earlier year 5. How to amend taxes     6. How to amend taxes Add lines 2 through 5 6. How to amend taxes     7. How to amend taxes Enter your taxable benefits for the earlier year that you previously reported 7. How to amend taxes     8. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes     9. How to amend taxes 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. How to amend taxes       Note. How to amend taxes 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% (. How to amend taxes 85) and enter the result on line 17. How to amend taxes Then go to line 18. How to amend taxes         10. How to amend taxes Is the amount on line 8 more than the amount on line 9?       No. How to amend taxes Skip lines 10 through 20 and enter -0- on line 21. How to amend taxes       Yes. How to amend taxes Subtract line 9 from line 8 10. How to amend taxes     11. How to amend taxes 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. How to amend taxes     12. How to amend taxes Subtract line 11 from line 10. How to amend taxes If zero or less, enter -0- 12. How to amend taxes     13. How to amend taxes Enter the smaller of line 10 or line 11 13. How to amend taxes     14. How to amend taxes Enter one-half of line 13 14. How to amend taxes     15. How to amend taxes Enter the smaller of line 2 or line 14 15. How to amend taxes     16. How to amend taxes Multiply line 12 by 85% (. How to amend taxes 85). How to amend taxes If line 12 is zero, enter -0- 16. How to amend taxes     17. How to amend taxes Add lines 15 and 16 17. How to amend taxes     18. How to amend taxes Multiply line 1 by 85% (. How to amend taxes 85) 18. How to amend taxes     19. How to amend taxes Refigured taxable benefits. How to amend taxes Enter the smaller of line 17 or line 18 19. How to amend taxes     20. How to amend taxes Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. How to amend taxes     21. How to amend taxes Additional taxable benefits. How to amend taxes Subtract line 20 from line 19. How to amend taxes Also enter this amount on Worksheet 4, line 20 21. How to amend taxes       Do not file an amended return for this earlier year. How to amend taxes Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. How to amend taxes   Worksheet 3. How to amend taxes Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994) Enter earlier year 1. How to amend taxes 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. How to amend taxes           Note. How to amend taxes If line 1 is zero or less, skip lines 2 through 13 and enter -0- on line 14. How to amend taxes Otherwise, go on to line 2. How to amend taxes           2. How to amend taxes Enter one-half of line 1 2. How to amend taxes     3. How to amend taxes Enter your adjusted gross income for the earlier year 3. How to amend taxes     4. How to amend taxes Enter the total of any exclusions/adjustments you claimed in the earlier year for: Qualified U. How to amend taxes S. How to amend taxes 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. How to amend taxes     5. How to amend taxes Enter any tax-exempt interest received in the earlier year 5. How to amend taxes     6. How to amend taxes Add lines 2 through 5 6. How to amend taxes     7. How to amend taxes Enter your taxable benefits for the earlier year that you previously reported 7. How to amend taxes     8. How to amend taxes Subtract line 7 from line 6 8. How to amend taxes     9. How to amend taxes 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. How to amend taxes     10. How to amend taxes Is the amount on line 8 more than the amount on line 9? No. How to amend taxes Skip lines 10 through 13 and enter -0- on line 14. How to amend taxes  Yes. How to amend taxes Subtract line 9 from line 8. How to amend taxes 10. How to amend taxes     11. How to amend taxes Enter one-half of line 10 11. How to amend taxes     12. How to amend taxes Refigured taxable benefits. How to amend taxes Enter the smaller of line 2 or line 11 12. How to amend taxes     13. How to amend taxes Enter your taxable benefits for the earlier year (or as refigured due to a previous