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Irs Free State File Tax Return

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Irs Free State File Tax Return

Irs free state file tax return Publication 4681 - Introductory Material Table of Contents Reminder IntroductionOrdering forms and publications. Irs free state file tax return Tax questions. Irs free state file tax return Useful Items - You may want to see: Common Situations Covered In This Publication Reminder Future Developments. Irs free state file tax return  Information about any future developments affecting Publication 4681 (such as legislation enacted after we release it) will be posted at www. Irs free state file tax return irs. Irs free state file tax return gov/pub4681. Irs free state file tax return Photographs of missing children. Irs free state file tax return   The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Irs free state file tax return Photographs of missing children selected by the Center may appear in this publication on pages that otherwise would be blank. Irs free state file tax return You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Irs free state file tax return Introduction This publication explains the federal tax treatment of canceled debts, foreclosures, repossessions, and abandonments. Irs free state file tax return Generally, if you owe a debt to someone else and they cancel or forgive that debt for less than its full amount, you are treated for income tax purposes as having income and may have to pay tax on this income. Irs free state file tax return Note. Irs free state file tax return This publication generally refers to debt that is canceled, forgiven, or discharged for less than the full amount of the debt as “canceled debt. Irs free state file tax return ” Sometimes a debt, or part of a debt, that you do not have to pay is not considered canceled debt. Irs free state file tax return These exceptions are discussed later under Exceptions . Irs free state file tax return Sometimes a canceled debt may be excluded from your income. Irs free state file tax return But if you do exclude canceled debt from income, you may be required to reduce your “tax attributes. Irs free state file tax return ” These exclusions and the reduction of tax attributes associated with them are discussed later under Exclusions . Irs free state file tax return Foreclosure and repossession are remedies that your lender may exercise if you fail to make payments on your loan and you have previously granted that lender a mortgage or other security interest in some of your property. Irs free state file tax return These remedies allow the lender to seize or sell the property securing the loan. Irs free state file tax return When your property is foreclosed upon or repossessed and sold, you are treated as having sold the property and you may recognize taxable gain. Irs free state file tax return Whether you also recognize income from canceled debt depends in part on whether you are personally liable for the debt and in part on whether the outstanding loan balance is more than the fair market value (FMV) of the property. Irs free state file tax return Figuring your gain or loss and income from canceled debt arising from a foreclosure or repossession is discussed later under Foreclosures and Repossessions . Irs free state file tax return Generally, you abandon property when you voluntarily and permanently give up possession and use of property you own with the intention of ending your ownership but without passing it on to anyone else. Irs free state file tax return Figuring your gain or loss and income from canceled debt arising from an abandonment is discussed later under Abandonments . Irs free state file tax return This publication also includes detailed examples with filled-in forms. Irs free state file tax return Comments and suggestions. Irs free state file tax return    We welcome your comments about this publication and your suggestions for future editions. Irs free state file tax return   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Irs free state file tax return NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs free state file tax return Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs free state file tax return   You can send your comments from www. Irs free state file tax return irs. Irs free state file tax return gov/formspubs. Irs free state file tax return Click on “More Information” and then on “Comment on Tax Forms and Publications”. Irs free state file tax return   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs free state file tax return Ordering forms and publications. Irs free state file tax return    Visit www. Irs free state file tax return irs. Irs free state file tax return gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Irs free state file tax return Internal Revenue Service 1201 N. Irs free state file tax return Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs free state file tax return    If you have a tax question, check the information available on IRS. Irs free state file tax return gov or call 1-800-829-1040. Irs free state file tax return We cannot answer tax questions sent to either of the above addresses. Irs free state file tax return Useful Items - You may want to see: Publication 225 Farmer's Tax Guide 334 Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) 523 Selling Your Home 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 542 Corporations 544 Sales and Other Dispositions of Assets 551 Basis of Assets 908 Bankruptcy Tax Guide Form (and Instructions) 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) 1099-C Cancellation of Debt 1099-DIV Dividends and Distributions 3800 General Business Credit Common Situations Covered In This Publication The sections of this publication that apply to you depend on the type of debt canceled, the tax attributes you have, and whether or not you continue to own the property that was subject to the debt. Irs free state file tax return Some examples of common circumstances are provided in the following paragraphs to help guide you through this publication. Irs free state file tax return These examples do not cover every situation but are intended to provide general guidance for the most common situations. Irs free state file tax return Nonbusiness credit card debt cancellation. Irs free state file tax return    If you had a nonbusiness credit card debt canceled, you may be able to exclude the canceled debt from income if the cancellation occurred in a title 11 bankruptcy case or you were insolvent immediately before the cancellation. Irs free state file tax return You should read Bankruptcy or Insolvency under Exclusions in chapter 1 to see if you can exclude the canceled debt from income under one of those provisions. Irs free state file tax return If you can exclude part or all of the canceled debt from income, you should also read Bankruptcy and Insolvency under Reduction of Tax Attributes in chapter 1. Irs free state file tax return Personal vehicle repossession. Irs free state file tax return    If you had a personal vehicle repossessed and disposed of by the lender during the year, you will need to determine your gain or nondeductible loss on the disposition. Irs free state file tax return This is explained in chapter 2 . Irs free state file tax return If the lender also canceled all or part of the remaining amount of the loan, you may be able to exclude the canceled debt from income if the cancellation occurred in a title 11 bankruptcy case or you were insolvent immediately before the cancellation. Irs free state file tax return You should read Bankruptcy or Insolvency under Exclusions in chapter 1 to see if you can exclude the canceled debt from income under one of those provisions. Irs free state file tax return If you can exclude part or all of the canceled debt from income, you should also read Bankruptcy and Insolvency under Reduction of Tax Attributes in chapter 1. Irs free state file tax return Main home foreclosure or abandonment. Irs free state file tax return    If a lender foreclosed on your main home during the year, you will need to determine your gain or loss on the foreclosure. Irs free state file tax return Foreclosures are explained in chapter 2 and abandonments are explained in chapter 3. Irs free state file tax return If the lender also canceled all or part of the remaining amount on the mortgage loan and you were personally liable for the debt, you should also read Qualified Principal Residence Indebtedness under Exclusions in chapter 1 to see if you can exclude part or all of the canceled debt from income. Irs free state file tax return Detailed Example 2 and Example 3 in chapter 4 use filled-in forms to help explain these provisions. Irs free state file tax return Main home loan modification (workout agreement). Irs free state file tax return    If a lender agrees to a mortgage loan modification (a “workout”) that includes a reduction in the principal balance of the loan, you should read Qualified Principal Residence Indebtedness under Exclusions in chapter 1 to see if you can exclude part or all of the canceled debt from income. Irs free state file tax return If you can exclude part or all of the canceled debt from income, you should also read Qualified Principal Residence Indebtedness under Reduction of Tax Attributes in chapter 1. Irs free state file tax return Detailed Example 1 in chapter 4 uses filled-in forms to help explain the tax implications of a mortgage workout scenario. Irs free state file tax return Prev  Up  Next   Home   More Online Publications
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Irs free state file tax return 11. Irs free state file tax return   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. Irs free state file tax return It explains the following topics. Irs free state file tax return How to figure whether your benefits are taxable. Irs free state file tax return How to use the social security benefits worksheet (with examples). Irs free state file tax return How to report your taxable benefits. Irs free state file tax return How to treat repayments that are more than the benefits you received during the year. Irs free state file tax return Social security benefits include monthly retirement, survivor, and disability benefits. Irs free state file tax return They do not include supplemental security income (SSI) payments, which are not taxable. Irs free state file tax return 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. Irs free state file tax return They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Irs free state file tax return 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. Irs free state file tax return These forms show the amounts received and repaid, and taxes withheld for the year. Irs free state file tax return You may receive more than one of these forms for the same year. Irs free state file tax return 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. Irs free state file tax return See the Appendix at the end of Publication 915 for more information. Irs free state file tax return Note. Irs free state file tax return 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. Irs free state file tax return What is not covered in this chapter. Irs free state file tax return   This chapter does not cover the tax rules for the following railroad retirement benefits. Irs free state file tax return Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. Irs free state file tax return Tier 2 benefits. Irs free state file tax return Vested dual benefits. Irs free state file tax return Supplemental annuity benefits. Irs free state file tax return For information on these benefits, see Publication 575, Pension and Annuity Income. Irs free state file tax return   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. Irs free state file tax return For information about these benefits, see Publication 519, U. Irs free state file tax return S. Irs free state file tax return Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Irs free state file tax return   This chapter also does not cover the tax rules for foreign social security benefits. Irs free state file tax return These benefits are taxable as annuities, unless they are exempt from U. Irs free state file tax return S. Irs free state file tax return tax or treated as a U. Irs free state file tax return S. Irs free state file tax return social security benefit under a tax treaty. Irs free state file tax return 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. Irs free state file tax return When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Irs free state file tax return S. Irs free state file tax return 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. Irs free state file tax return Children's benefits. Irs free state file tax return   The rules in this chapter apply to benefits received by children. Irs free state file tax return See Who is taxed , later. Irs free state file tax return Figuring total income. Irs free state file tax return   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. Irs free state file tax return If the total is more than your base amount, part of your benefits may be taxable. Irs free state file tax return    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. Irs free state file tax return 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. Irs free state file tax return    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. Irs free state file tax return If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Irs free state file tax return Base amount. Irs free state file tax return   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. Irs free state file tax return Worksheet 11-1. Irs free state file tax return   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. Irs free state file tax return This is a quick way to check whether some of your benefits may be taxable. Irs free state file tax return Worksheet 11-1. Irs free state file tax return A Quick Way To Check if Your Benefits May Be Taxable A. Irs free state file tax return Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Irs free state file tax return Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Irs free state file tax return (If you received more than one form, combine the amounts from box 5 and enter the total. Irs free state file tax return ) A. Irs free state file tax return   Note. Irs free state file tax return If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Irs free state file tax return B. Irs free state file tax return Enter one-half of the amount on line A B. Irs free state file tax return   C. Irs free state file tax return Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Irs free state file tax return   D. Irs free state file tax return Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Irs free state file tax return   E. Irs free state file tax return Add lines B, C, and D E. Irs free state file tax return   Note. Irs free state file tax return Compare the amount on line E to your base amount for your filing status. Irs free state file tax return 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. Irs free state file tax return If the amount on line E is more than your base amount, some of your benefits may be taxable. Irs free state file tax return You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Irs free state file tax return 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. Irs free state file tax return Example. Irs free state file tax return You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Irs free state file tax return In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Irs free state file tax return Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Irs free state file tax return You also received a taxable pension of $22,800 and interest income of $500. Irs free state file tax return You did not have any tax-exempt interest income. Irs free state file tax return 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. Irs free state file tax return 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. Irs free state file tax return Filled-in Worksheet 11-1. Irs free state file tax return A Quick Way To Check if Your Benefits May Be Taxable A. Irs free state file tax return Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Irs free state file tax return Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Irs free state file tax return (If you received more than one form, combine the amounts from box 5 and enter the total. Irs free state file tax return ) A. Irs free state file tax return $11,000 Note. Irs free state file tax return If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Irs free state file tax return B. Irs free state file tax return Enter one-half of the amount on line A B. Irs free state file tax return 5,500 C. Irs free state file tax return Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Irs free state file tax return 23,300 D. Irs free state file tax return Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Irs free state file tax return -0- E. Irs free state file tax return Add lines B, C, and D E. Irs free state file tax return $28,800 Note. Irs free state file tax return Compare the amount on line E to your base amount for your filing status. Irs free state file tax return 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. Irs free state file tax return If the amount on line E is more than your base amount, some of your benefits may be taxable. Irs free state file tax return You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Irs free state file tax return 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. Irs free state file tax return Who is taxed. Irs free state file tax return   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. Irs free state file tax return 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. Irs free state file tax return 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. Irs free state file tax return Repayment of benefits. Irs free state file tax return   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Irs free state file tax return It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Irs free state file tax return If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Irs free state file tax return   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. Irs free state file tax return Your repayments are shown in box 4. Irs free state file tax return The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Irs free state file tax return Use the amount in box 5 to figure whether any of your benefits are taxable. Irs free state file tax return Tax withholding and estimated tax. Irs free state file tax return   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. Irs free state file tax return If you choose to do this, you must complete a Form W-4V. Irs free state file tax return   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. Irs free state file tax return For details, see Publication 505 or the instructions for Form 1040-ES. Irs free state file tax return How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Irs free state file tax return You cannot use Form 1040EZ. Irs free state file tax return Reporting on Form 1040. Irs free state file tax return   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. Irs free state file tax return 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. Irs free state file tax return Reporting on Form 1040A. Irs free state file tax return   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. Irs free state file tax return 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. Irs free state file tax return Benefits not taxable. Irs free state file tax return   If you are filing Form 1040EZ, do not report any benefits on your tax return. Irs free state file tax return 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. Irs free state file tax return Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Irs free state file tax return 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. Irs free state file tax return 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. Irs free state file tax return Generally, the higher that total amount, the greater the taxable part of your benefits. Irs free state file tax return Maximum taxable part. Irs free state file tax return   Generally, up to 50% of your benefits will be taxable. Irs free state file tax return However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Irs free state file tax return 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). Irs free state file tax return You are married filing separately and lived with your spouse at any time during 2013. Irs free state file tax return Which worksheet to use. Irs free state file tax return   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. Irs free state file tax return You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. Irs free state file tax return You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Irs free state file tax return 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. Irs free state file tax return Situation (1) does not apply and you take an exclusion for interest from qualified U. Irs free state file tax return S. Irs free state file tax return 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. Irs free state file tax return In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. Irs free state file tax return You received a lump-sum payment for an earlier year. Irs free state file tax return In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Irs free state file tax return See Lump-sum election next. Irs free state file tax return Lump-sum election. Irs free state file tax return   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. Irs free state file tax return    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. Irs free state file tax return No part of the lump-sum death benefit is subject to tax. Irs free state file tax return   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Irs free state file tax return 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. Irs free state file tax return You can elect this method if it lowers your taxable benefits. Irs free state file tax return Making the election. Irs free state file tax return   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. Irs free state file tax return That discussion also explains how to make the election. Irs free state file tax return    Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Irs free state file tax return Do not file an amended return for the earlier year. Irs free state file tax return Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. Irs free state file tax return Example 1. Irs free state file tax return George White is single and files Form 1040 for 2013. Irs free state file tax return 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. Irs free state file tax return The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. Irs free state file tax return To figure his taxable benefits, George completes the worksheet shown here. Irs free state file tax return Filled-in Worksheet 1. Irs free state file tax return Figuring Your Taxable Benefits 1. Irs free state file tax return Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Irs free state file tax return Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. Irs free state file tax return Enter one-half of line 1 2,990 3. Irs free state file tax return Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Irs free state file tax return     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. Irs free state file tax return Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Irs free state file tax return 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. Irs free state file tax return Combine lines 2, 3, 4, and 5 31,980 7. Irs free state file tax return 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. Irs free state file tax return     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Irs free state file tax return Is the amount on line 7 less than the amount on line 6?     No. Irs free state file tax return None of your social security benefits are taxable. Irs free state file tax return Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Irs free state file tax return   Yes. Irs free state file tax return Subtract line 7 from line 6 31,980 9. Irs free state file tax return 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. Irs free state file tax return 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% (. Irs free state file tax return 85) and enter the result on line 17. Irs free state file tax return Then go to line 18. Irs free state file tax return   10. Irs free state file tax return Is the amount on line 9 less than the amount on line 8?     No. Irs free state file tax return None of your benefits are taxable. Irs free state file tax return Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Irs free state file tax return 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. Irs free state file tax return     Yes. Irs free state file tax return Subtract line 9 from line 8 6,980 11. Irs free state file tax return 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. Irs free state file tax return Subtract line 11 from line 10. Irs free state file tax return If zero or less, enter -0- -0- 13. Irs free state file tax return Enter the smaller of line 10 or line 11 6,980 14. Irs free state file tax return Enter one-half of line 13 3,490 15. Irs free state file tax return Enter the smaller of line 2 or line 14 2,990 16. Irs free state file tax return Multiply line 12 by 85% (. Irs free state file tax return 85). Irs free state file tax return If line 12 is zero, enter -0- -0- 17. Irs free state file tax return Add lines 15 and 16 2,990 18. Irs free state file tax return Multiply line 1 by 85% (. Irs free state file tax return 85) 5,083 19. Irs free state file tax return Taxable benefits. Irs free state file tax return Enter the smaller of line 17 or line 18. Irs free state file tax return 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. Irs free state file tax return On line 20a of his Form 1040, George enters his net benefits of $5,980. Irs free state file tax return On line 20b, he enters his taxable benefits of $2,990. Irs free state file tax return Example 2. Irs free state file tax return Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Irs free state file tax return Ray is retired and received a fully taxable pension of $15,500. Irs free state file tax return He also received social security benefits, and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Irs free state file tax return Alice worked during the year and had wages of $14,000. Irs free state file tax return She made a deductible payment to her IRA account of $1,000. Irs free state file tax return Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Irs free state file tax return They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Irs free state file tax return They find none of Ray's social security benefits are taxable. Irs free state file tax return On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Irs free state file tax return Filled-in Worksheet 1. Irs free state file tax return Figuring Your Taxable Benefits 1. Irs free state file tax return Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Irs free state file tax return Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. Irs free state file tax return Enter one-half of line 1 2,800 3. Irs free state file tax return Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Irs free state file tax return     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. Irs free state file tax return Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Irs free state file tax return 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. Irs free state file tax return Combine lines 2, 3, 4, and 5 32,550 7. Irs free state file tax return 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. Irs free state file tax return     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. Irs free state file tax return Is the amount on line 7 less than the amount on line 6?     No. Irs free state file tax return None of your social security benefits are taxable. Irs free state file tax return Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Irs free state file tax return   Yes. Irs free state file tax return Subtract line 7 from line 6 31,550 9. Irs free state file tax return 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. Irs free state file tax return 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% (. Irs free state file tax return 85) and enter the result on line 17. Irs free state file tax return Then go to line 18. Irs free state file tax return   10. Irs free state file tax return Is the amount on line 9 less than the amount on line 8?     No. Irs free state file tax return None of your benefits are taxable. Irs free state file tax return Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Irs free state file tax return 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. Irs free state file tax return     Yes. Irs free state file tax return Subtract line 9 from line 8   11. Irs free state file tax return 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. Irs free state file tax return Subtract line 11 from line 10. Irs free state file tax return If zero or less, enter -0-   13. Irs free state file tax return Enter the smaller of line 10 or line 11   14. Irs free state file tax return Enter one-half of line 13   15. Irs free state file tax return Enter the smaller of line 2 or line 14   16. Irs free state file tax return Multiply line 12 by 85% (. Irs free state file tax return 85). Irs free state file tax return If line 12 is zero, enter -0-   17. Irs free state file tax return Add lines 15 and 16   18. Irs free state file tax return Multiply line 1 by 85% (. Irs free state file tax return 85)   19. Irs free state file tax return Taxable benefits. Irs free state file tax return Enter the smaller of line 17 or line 18. Irs free state file tax return Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. Irs free state file tax return Joe and Betty Johnson file a joint return on Form 1040 for 2013. Irs free state file tax return Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Irs free state file tax return Joe's Form RRB-1099 shows $10,000 in box 5. Irs free state file tax return Betty is a retired government worker and receives a fully taxable pension of $38,000. Irs free state file tax return They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Irs free state file tax return S. Irs free state file tax return savings bond. Irs free state file tax return The savings bond interest qualified for the exclusion. Irs free state file tax return They figure their taxable benefits by completing Worksheet 1. Irs free state file tax return Because they have qualified U. Irs free state file tax return S. Irs free state file tax return 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. Irs free state file tax return On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Irs free state file tax return Filled-in Worksheet 1. Irs free state file tax return 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. Irs free state file tax return • 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). Irs free state file tax return None of your benefits are taxable for 2013. Irs free state file tax return For more information, see Repayments More Than Gross Benefits. Irs free state file tax return • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Irs free state file tax return S. Irs free state file tax return 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. Irs free state file tax return Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Irs free state file tax return 1. Irs free state file tax return Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Irs free state file tax return Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. Irs free state file tax return Enter one-half of line 1 5,000 3. Irs free state file tax return Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Irs free state file tax return     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. Irs free state file tax return Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Irs free state file tax return 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. Irs free state file tax return Combine lines 2, 3, 4, and 5 45,500 7. Irs free state file tax return 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. Irs free state file tax return     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Irs free state file tax return Is the amount on line 7 less than the amount on line 6?     No. Irs free state file tax return None of your social security benefits are taxable. Irs free state file tax return Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Irs free state file tax return   Yes. Irs free state file tax return Subtract line 7 from line 6 45,500 9. Irs free state file tax return 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. Irs free state file tax return 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% (. Irs free state file tax return 85) and enter the result on line 17. Irs free state file tax return Then go to line 18. Irs free state file tax return   10. Irs free state file tax return Is the amount on line 9 less than the amount on line 8?     No. Irs free state file tax return None of your benefits are taxable. Irs free state file tax return Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Irs free state file tax return 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. Irs free state file tax return     Yes. Irs free state file tax return Subtract line 9 from line 8 13,500 11. Irs free state file tax return 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. Irs free state file tax return Subtract line 11 from line 10. Irs free state file tax return If zero or less, enter -0- 1,500 13. Irs free state file tax return Enter the smaller of line 10 or line 11 12,000 14. Irs free state file tax return Enter one-half of line 13 6,000 15. Irs free state file tax return Enter the smaller of line 2 or line 14 5,000 16. Irs free state file tax return Multiply line 12 by 85% (. Irs free state file tax return 85). Irs free state file tax return If line 12 is zero, enter -0- 1,275 17. Irs free state file tax return Add lines 15 and 16 6,275 18. Irs free state file tax return Multiply line 1 by 85% (. Irs free state file tax return 85) 8,500 19. Irs free state file tax return Taxable benefits. Irs free state file tax return Enter the smaller of line 17 or line 18. Irs free state file tax return 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. Irs free state file tax return Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Irs free state file tax return Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Irs free state file tax return Disability payments. Irs free state file tax return   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. Irs free state file tax return 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. Irs free state file tax return If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Irs free state file tax return Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. Irs free state file tax return Legal expenses. Irs free state file tax return   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. Irs free state file tax return   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Irs free state file tax return 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. Irs free state file tax return 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. Irs free state file tax return Do not use a worksheet in this case. Irs free state file tax return 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. Irs free state file tax return If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Irs free state file tax return Joint return. Irs free state file tax return   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. Irs free state file tax return You do this to get your net benefits when figuring if your combined benefits are taxable. Irs free state file tax return Example. Irs free state file tax return John and Mary file a joint return for 2013. Irs free state file tax return John received Form SSA-1099 showing $3,000 in box 5. Irs free state file tax return Mary also received Form SSA-1099 and the amount in box 5 was ($500). Irs free state file tax return 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. Irs free state file tax return Repayment of benefits received in an earlier year. Irs free state file tax return   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. Irs free state file tax return Deduction $3,000 or less. Irs free state file tax return   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. Irs free state file tax return Claim it on Schedule A (Form 1040), line 23. Irs free state file tax return Deduction more than $3,000. Irs free state file tax return    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. Irs free state file tax return Figure your tax for 2013 in the following steps. Irs free state file tax return Figure the tax without the itemized deduction included on Schedule A, line 28. Irs free state file tax return 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. Irs free state file tax return Then refigure the tax for that year. Irs free state file tax return Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Irs free state file tax return Subtract the result in (c) from the result in (a). Irs free state file tax return Compare the tax figured in methods (1) and (2). Irs free state file tax return Your tax for 2013 is the smaller of the two amounts. Irs free state file tax return If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Irs free state file tax return If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Irs free state file tax return Check box d and enter “I. Irs free state file tax return R. Irs free state file tax return C. Irs free state file tax return 1341” in the space next to that box. Irs free state file tax return If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Irs free state file tax return Prev  Up  Next   Home   More Online Publications