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Irs freefile Index A Accounting method: Accrual method, Accounting Method Cash method, Accounting Method Assistance (see Tax help) B Business: Expenses, Business Expenses Start-up costs, Business Start-Up Costs Use of car, Car and Truck Expenses Use of home, Business Use of Your Home C Car and truck expenses, Car and Truck Expenses Corporation, Corporations. Irs freefile D Depositing taxes, Depositing Taxes Depreciation, Depreciation E Employer identification number (EIN), Employer Identification Number (EIN) Employment taxes: Defined, Employment Taxes Records to keep, Employment taxes. Irs freefile Estimated tax, Estimated tax. Irs freefile Excise taxes, Excise Taxes F Form: 1099-MISC, Form 1099-MISC. Irs freefile 11-C, Form 11-C. Irs freefile 1128, Changing your tax year. Irs freefile 2290, Form 2290. Irs freefile 720, Form 720. Irs freefile 730, Form 730. Irs freefile 8300, Form 8300. Irs freefile 8829, Which form do I file? I-9, Form I-9. Irs freefile SS-4, Applying for an EIN. Irs freefile W-2, Form W-2 Wage Reporting, Form W-2. Irs freefile W-4, Form W-4. Irs freefile W-9, Other payee. Irs freefile FUTA tax, Federal Unemployment (FUTA) Tax H Help (see Tax help) Help from Small Business Administration, Small Business Administration I Identification numbers, Identification Numbers Income tax, Income Tax, Federal Income, Social Security, and Medicare Taxes Information returns, Information Returns Inventories, Accounting Method L Limited liability company, Limited liability company. Irs freefile M Medicare tax, Federal Income, Social Security, and Medicare Taxes More Information (see Tax help) More information (see Tax help) O Office in home, Business Use of Your Home P Partnership, Partnerships. Irs freefile Penalties, Penalties Publications (see Tax help) R Recordkeeping, Recordkeeping Records, how long to keep, How Long To Keep Records S S corporation, S corporations. Irs freefile Self-employment tax, Self-Employment Tax Small Business Administration, Small Business Administration Social security tax, Federal Income, Social Security, and Medicare Taxes Sole proprietorship, Sole proprietorships. Irs freefile Start-up costs, Business Start-Up Costs T Tax help, How to Get More Information Tax year, Tax Year Taxes: Employment, Employment Taxes Estimated, Estimated tax. Irs freefile Excise, Excise Taxes How to deposit, Depositing Taxes Income, Income Tax Self-employment, Self-Employment Tax Unemployment (FUTA), Federal Unemployment (FUTA) Tax Taxpayer Advocate, Taxpayer Advocate Service. Irs freefile TTY/TDD information, How to Get More Information U Unemployment (FUTA) tax, Federal Unemployment (FUTA) Tax Prev  Up     Home   More Online Publications
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2014 Identity Protection PIN (IP PIN) Pilot

January 2014 

As part of its comprehensive identity theft strategy, the Internal Revenue Service is offering a limited pilot program to help taxpayers who filed their returns last year from Florida, Georgia and the District of Columbia. This additional layer of security for identity theft would be available to taxpayers who need an Electronic Filing PIN (e-file PIN) to submit their tax return this year. 

Under the pilot, any taxpayer who filed a tax return from one of those three locations last year and obtains an e-file PIN this year from the IRS may be offered an opportunity to apply for an Identity Protection PIN (IP PIN). The IRS encourages taxpayers who are offered this opportunity in this pilot program to complete the process to get the IP PIN.

The IRS selected Florida, Georgia and the District of Columbia for the pilot because those are the locations with the highest per-capita percentage of tax-related identity theft. The pilot is an expansion of the current IP PIN program, which (generally) has only been used for victims of identity theft. The pilot is not limited to just identity theft victims. 

Taxpayers selected for the pilot will be asked a series of questions online to verify their identity. The IRS will not issue an IP PIN to a taxpayer unless that person’s identity has been verified. Filing a return without an IP PIN should not delay processing their return.

The vast majority of taxpayers do not need an e-file PIN to file their taxes. In some cases, a taxpayer must obtain an e-file PIN if they need to e-file a tax return or other electronic forms, but they do not have their Self-Select PIN or Adjusted Gross Income from their 2012 tax return to verify their identity.  In these cases, the taxpayer may request an e-file PIN on the IRS website.

Following the pilot, the IRS will carefully assess the results and performance before deciding on how to proceed with the program.

The IP PIN is a unique six digit number that has been assigned annually to victims of identity theft whose cases have been resolved for use when filing their federal tax return. During this 2014 filing season, the IRS expects to provide more than 1.2 million victims with resolved cases with an IP PIN, up from more than 770,000 the year prior. The IP PIN will allow these individuals to avoid delays in filing returns and receiving refunds. The pilot program is in addition to these efforts.

Identity theft remains a top priority for the IRS. Identity theft is one of the fastest growing crimes nationwide, and refund fraud caused by identity theft is one of the biggest challenges facing the IRS. The IRS is focused on preventing, detecting and resolving identity theft cases as soon as possible. The IRS has more than 3,000 employees working on identity theft cases. The IRS has trained more than 35,000 employees who work with taxpayers to recognize and provide assistance when identity theft occurs.

Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft or the Identity Theft Protection page on the IRS website. For more information on the pilot program, see our questions and answers

Please visit our website for more information on self-select PINs and e-file PINs.

 

Page Last Reviewed or Updated: 20-Feb-2014

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