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How To File Taxes

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How To File Taxes

How to file taxes 11. How to file taxes   Social Security and Equivalent Railroad Retirement Benefits Table of Contents Introduction Useful Items - You may want to see: Are Any of Your Benefits Taxable? How To Report Your BenefitsHow Much Is Taxable? Examples Deductions Related to Your BenefitsRepayments More Than Gross Benefits Introduction This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. How to file taxes It explains the following topics. How to file taxes How to figure whether your benefits are taxable. How to file taxes How to use the social security benefits worksheet (with examples). How to file taxes How to report your taxable benefits. How to file taxes How to treat repayments that are more than the benefits you received during the year. How to file taxes Social security benefits include monthly retirement, survivor, and disability benefits. How to file taxes They do not include supplemental security income (SSI) payments, which are not taxable. How to file taxes Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. How to file taxes They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. How to file taxes If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board. How to file taxes These forms show the amounts received and repaid, and taxes withheld for the year. How to file taxes You may receive more than one of these forms for the same year. How to file taxes You should add the amounts shown on all the Forms SSA-1099 and Forms RRB-1099 you receive for the year to determine the total amounts received and repaid, and taxes withheld for that year. How to file taxes See the Appendix at the end of Publication 915 for more information. How to file taxes Note. How to file taxes When the term “benefits” is used in this chapter, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. How to file taxes What is not covered in this chapter. How to file taxes   This chapter does not cover the tax rules for the following railroad retirement benefits. How to file taxes Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. How to file taxes Tier 2 benefits. How to file taxes Vested dual benefits. How to file taxes Supplemental annuity benefits. How to file taxes For information on these benefits, see Publication 575, Pension and Annuity Income. How to file taxes   This chapter does not cover the tax rules for social security benefits reported on Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. How to file taxes For information about these benefits, see Publication 519, U. How to file taxes S. How to file taxes Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. How to file taxes   This chapter also does not cover the tax rules for foreign social security benefits. How to file taxes These benefits are taxable as annuities, unless they are exempt from U. How to file taxes S. How to file taxes tax or treated as a U. How to file taxes S. How to file taxes social security benefit under a tax treaty. How to file taxes Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 915 Social Security and Equivalent Railroad Retirement Benefits Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request Are Any of Your Benefits Taxable? To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. How to file taxes When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. How to file taxes S. How to file 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 file taxes Children's benefits. How to file taxes   The rules in this chapter apply to benefits received by children. How to file taxes See Who is taxed , later. How to file taxes Figuring total income. How to file taxes   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. How to file taxes If the total is more than your base amount, part of your benefits may be taxable. How to file 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 file 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 file 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 file 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 file taxes Base amount. How to file 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 file taxes Worksheet 11-1. How to file taxes   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. How to file taxes This is a quick way to check whether some of your benefits may be taxable. How to file taxes Worksheet 11-1. How to file taxes A Quick Way To Check if Your Benefits May Be Taxable A. How to file taxes Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. How to file taxes Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. How to file taxes (If you received more than one form, combine the amounts from box 5 and enter the total. How to file taxes ) A. How to file taxes   Note. How to file taxes If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. How to file taxes B. How to file taxes Enter one-half of the amount on line A B. How to file taxes   C. How to file taxes Enter your taxable pensions, wages, interest, dividends, and other taxable income C. How to file taxes   D. How to file taxes Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. How to file taxes   E. How to file taxes Add lines B, C, and D E. How to file taxes   Note. How to file taxes Compare the amount on line E to your base amount for your filing status. How to file 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 file taxes If the amount on line E is more than your base amount, some of your benefits may be taxable. How to file taxes You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). How to file 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 file taxes Example. How to file 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 file taxes In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. How to file taxes Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. How to file taxes You also received a taxable pension of $22,800 and interest income of $500. How to file taxes You did not have any tax-exempt interest income. How to file taxes Your benefits are not taxable for 2013 because your income, as figured in Worksheet 11-1, is not more than your base amount ($32,000) for married filing jointly. How to file 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 file taxes Filled-in Worksheet 11-1. How to file taxes A Quick Way To Check if Your Benefits May Be Taxable A. How to file taxes Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. How to file taxes Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. How to file taxes (If you received more than one form, combine the amounts from box 5 and enter the total. How to file taxes ) A. How to file taxes $11,000 Note. How to file taxes If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. How to file taxes B. How to file taxes Enter one-half of the amount on line A B. How to file taxes 5,500 C. How to file taxes Enter your taxable pensions, wages, interest, dividends, and other taxable income C. How to file taxes 23,300 D. How to file taxes Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. How to file taxes -0- E. How to file taxes Add lines B, C, and D E. How to file taxes $28,800 Note. How to file taxes Compare the amount on line E to your base amount for your filing status. How to file 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 file taxes If the amount on line E is more than your base amount, some of your benefits may be taxable. How to file taxes You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). How to file 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 file taxes Who is taxed. How to file 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 file 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 file 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 file taxes Repayment of benefits. How to file taxes   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. How to file taxes It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. How to file taxes If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. How to file taxes   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. How to file taxes Your repayments are shown in box 4. How to file taxes The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). How to file taxes Use the amount in box 5 to figure whether any of your benefits are taxable. How to file taxes Tax withholding and estimated tax. How to file 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 file taxes If you choose to do this, you must complete a Form W-4V. How to file 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 file taxes For details, see Publication 505 or the instructions for Form 1040-ES. How to file taxes How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. How to file taxes You cannot use Form 1040EZ. How to file taxes Reporting on Form 1040. How to file 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 file 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 file taxes Reporting on Form 1040A. How to file 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 file 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 file taxes Benefits not taxable. How to file taxes   If you are filing Form 1040EZ, do not report any benefits on your tax return. How to file 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 file taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to file 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 file 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 file taxes Generally, the higher that total amount, the greater the taxable part of your benefits. How to file taxes Maximum taxable part. How to file taxes   Generally, up to 50% of your benefits will be taxable. How to file taxes However, up to 85% of your benefits can be taxable if either of the following situations applies to you. How to file 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 file taxes You are married filing separately and lived with your spouse at any time during 2013. How to file taxes Which worksheet to use. How to file taxes   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. How to file taxes You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. How to file 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 file 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 file taxes Situation (1) does not apply and you take an exclusion for interest from qualified U. How to file taxes S. How to file 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 file taxes In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. How to file taxes You received a lump-sum payment for an earlier year. How to file taxes In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. How to file taxes See Lump-sum election next. How to file taxes Lump-sum election. How to file taxes   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 file 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 file taxes No part of the lump-sum death benefit is subject to tax. How to file taxes   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. How to file 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 file taxes You can elect this method if it lowers your taxable benefits. How to file taxes Making the election. How to file taxes   If you received a lump-sum benefit payment in 2013 that includes benefits for one or more earlier years, follow the instructions in Publication 915 under Lump-Sum Election to see whether making the election will lower your taxable benefits. How to file taxes That discussion also explains how to make the election. How to file 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 file taxes Do not file an amended return for the earlier year. How to file taxes Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. How to file taxes Example 1. How to file taxes George White is single and files Form 1040 for 2013. How to file taxes He received the following income in 2013: Fully taxable pension $18,600 Wages from part-time job 9,400 Taxable interest income 990 Total $28,990 George also received social security benefits during 2013. How to file taxes The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. How to file taxes To figure his taxable benefits, George completes the worksheet shown here. How to file taxes Filled-in Worksheet 1. How to file taxes Figuring Your Taxable Benefits 1. How to file taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to file taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. How to file taxes Enter one-half of line 1 2,990 3. How to file taxes Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. How to file taxes     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. How to file taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. How to file 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 -0-       6. How to file taxes Combine lines 2, 3, 4, and 5 31,980 7. How to file taxes Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. How to file taxes     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. How to file taxes Is the amount on line 7 less than the amount on line 6?     No. How to file taxes None of your social security benefits are taxable. How to file taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to file taxes   Yes. How to file taxes Subtract line 7 from line 6 31,980 9. How to file 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 25,000   Note. How to file 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 file taxes 85) and enter the result on line 17. How to file taxes Then go to line 18. How to file taxes   10. How to file taxes Is the amount on line 9 less than the amount on line 8?     No. How to file taxes None of your benefits are taxable. How to file taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to file 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 file taxes     Yes. How to file taxes Subtract line 9 from line 8 6,980 11. How to file 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 9,000 12. How to file taxes Subtract line 11 from line 10. How to file taxes If zero or less, enter -0- -0- 13. How to file taxes Enter the smaller of line 10 or line 11 6,980 14. How to file taxes Enter one-half of line 13 3,490 15. How to file taxes Enter the smaller of line 2 or line 14 2,990 16. How to file taxes Multiply line 12 by 85% (. How to file taxes 85). How to file taxes If line 12 is zero, enter -0- -0- 17. How to file taxes Add lines 15 and 16 2,990 18. How to file taxes Multiply line 1 by 85% (. How to file taxes 85) 5,083 19. How to file taxes Taxable benefits. How to file taxes Enter the smaller of line 17 or line 18. How to file taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $2,990 The amount on line 19 of George's worksheet shows that $2,990 of his social security benefits is taxable. How to file taxes On line 20a of his Form 1040, George enters his net benefits of $5,980. How to file taxes On line 20b, he enters his taxable benefits of $2,990. How to file taxes Example 2. How to file taxes Ray and Alice Hopkins file a joint return on Form 1040A for 2013. How to file taxes Ray is retired and received a fully taxable pension of $15,500. How to file 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 file taxes Alice worked during the year and had wages of $14,000. How to file taxes She made a deductible payment to her IRA account of $1,000. How to file taxes Ray and Alice have two savings accounts with a total of $250 in taxable interest income. How to file taxes They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. How to file taxes They find none of Ray's social security benefits are taxable. How to file taxes On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. How to file taxes Filled-in Worksheet 1. How to file taxes Figuring Your Taxable Benefits 1. How to file taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to file taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. How to file taxes Enter one-half of line 1 2,800 3. How to file taxes Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. How to file taxes     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. How to file taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. How to file 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 -0-       6. How to file taxes Combine lines 2, 3, 4, and 5 32,550 7. How to file taxes Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. How to file taxes     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. How to file taxes Is the amount on line 7 less than the amount on line 6?     No. How to file taxes None of your social security benefits are taxable. How to file taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to file taxes   Yes. How to file taxes Subtract line 7 from line 6 31,550 9. How to file 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 32,000   Note. How to file 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 file taxes 85) and enter the result on line 17. How to file taxes Then go to line 18. How to file taxes   10. How to file taxes Is the amount on line 9 less than the amount on line 8?     No. How to file taxes None of your benefits are taxable. How to file taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to file 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 file taxes     Yes. How to file taxes Subtract line 9 from line 8   11. How to file 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   12. How to file taxes Subtract line 11 from line 10. How to file taxes If zero or less, enter -0-   13. How to file taxes Enter the smaller of line 10 or line 11   14. How to file taxes Enter one-half of line 13   15. How to file taxes Enter the smaller of line 2 or line 14   16. How to file taxes Multiply line 12 by 85% (. How to file taxes 85). How to file taxes If line 12 is zero, enter -0-   17. How to file taxes Add lines 15 and 16   18. How to file taxes Multiply line 1 by 85% (. How to file taxes 85)   19. How to file taxes Taxable benefits. How to file taxes Enter the smaller of line 17 or line 18. How to file taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. How to file taxes Joe and Betty Johnson file a joint return on Form 1040 for 2013. How to file 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 file taxes Joe's Form RRB-1099 shows $10,000 in box 5. How to file taxes Betty is a retired government worker and receives a fully taxable pension of $38,000. How to file taxes They had $2,300 in taxable interest income plus interest of $200 on a qualified U. How to file taxes S. How to file taxes savings bond. How to file taxes The savings bond interest qualified for the exclusion. How to file taxes They figure their taxable benefits by completing Worksheet 1. How to file taxes Because they have qualified U. How to file taxes S. How to file 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 file taxes On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). How to file taxes Filled-in Worksheet 1. How to file 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 file 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 file taxes None of your benefits are taxable for 2013. How to file taxes For more information, see Repayments More Than Gross Benefits. How to file taxes • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. How to file taxes S. How to file 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 file taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. How to file taxes 1. How to file taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. How to file taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. How to file taxes Enter one-half of line 1 5,000 3. How to file taxes Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. How to file taxes     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. How to file taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. How to file 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 -0-       6. How to file taxes Combine lines 2, 3, 4, and 5 45,500 7. How to file taxes Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. How to file taxes     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. How to file taxes Is the amount on line 7 less than the amount on line 6?     No. How to file taxes None of your social security benefits are taxable. How to file taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. How to file taxes   Yes. How to file taxes Subtract line 7 from line 6 45,500 9. How to file 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 32,000   Note. How to file 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 file taxes 85) and enter the result on line 17. How to file taxes Then go to line 18. How to file taxes   10. How to file taxes Is the amount on line 9 less than the amount on line 8?     No. How to file taxes None of your benefits are taxable. How to file taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. How to file 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 file taxes     Yes. How to file taxes Subtract line 9 from line 8 13,500 11. How to file 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 12,000 12. How to file taxes Subtract line 11 from line 10. How to file taxes If zero or less, enter -0- 1,500 13. How to file taxes Enter the smaller of line 10 or line 11 12,000 14. How to file taxes Enter one-half of line 13 6,000 15. How to file taxes Enter the smaller of line 2 or line 14 5,000 16. How to file taxes Multiply line 12 by 85% (. How to file taxes 85). How to file taxes If line 12 is zero, enter -0- 1,275 17. How to file taxes Add lines 15 and 16 6,275 18. How to file taxes Multiply line 1 by 85% (. How to file taxes 85) 8,500 19. How to file taxes Taxable benefits. How to file taxes Enter the smaller of line 17 or line 18. How to file taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $6,275 More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. How to file taxes Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. How to file taxes Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. How to file taxes Disability payments. How to file 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 file 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 file taxes If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. How to file taxes Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. How to file taxes Legal expenses. How to file 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 file 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 file 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 file 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 file taxes Do not use a worksheet in this case. How to file 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 file taxes If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. How to file taxes Joint return. How to file 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 file taxes You do this to get your net benefits when figuring if your combined benefits are taxable. How to file taxes Example. How to file taxes John and Mary file a joint return for 2013. How to file taxes John received Form SSA-1099 showing $3,000 in box 5. How to file taxes Mary also received Form SSA-1099 and the amount in box 5 was ($500). How to file 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 file taxes Repayment of benefits received in an earlier year. How to file 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 file taxes Deduction $3,000 or less. How to file 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 file taxes Claim it on Schedule A (Form 1040), line 23. How to file taxes Deduction more than $3,000. How to file 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 file taxes Figure your tax for 2013 in the following steps. How to file taxes Figure the tax without the itemized deduction included on Schedule A, line 28. How to file 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 file taxes Then refigure the tax for that year. How to file taxes Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. How to file taxes Subtract the result in (c) from the result in (a). How to file taxes Compare the tax figured in methods (1) and (2). How to file taxes Your tax for 2013 is the smaller of the two amounts. How to file taxes If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. How to file 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 file taxes Check box d and enter “I. How to file taxes R. How to file taxes C. How to file taxes 1341” in the space next to that box. How to file taxes If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. How to file taxes Prev  Up  Next   Home   More Online Publications
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The How To File Taxes

How to file taxes Publication 587 - Additional Material Prev  Up  Next   Home   More Online Publications