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State Tax Return Only

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State Tax Return Only

State tax return only 3. State tax return only   Dispositions of Business Property Table of Contents Introduction Useful Items - You may want to see: What Is a Disposition of Property?Like-kind exchanges. State tax return only How Do I Figure a Gain or Loss?Is My Gain or Loss Ordinary or Capital? Is My Capital Gain or Loss Short Term or Long Term? Where Do I Report Gains and Losses? Introduction If you dispose of business property, you may have a gain or loss that you report on Form 1040. State tax return only However, in some cases you may have a gain that is not taxable or a loss that is not deductible. State tax return only This chapter discusses whether you have a disposition, how to figure the gain or loss, and where to report the gain or loss. State tax return only Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 4797 Sales of Business Property Sch D (Form 1040) Capital Gains and Losses See chapter 12 for information about getting publications and forms. State tax return only What Is a Disposition of Property? A disposition of property includes the following transactions. State tax return only You sell property for cash or other property. State tax return only You exchange property for other property. State tax return only You receive money as a tenant for the cancellation of a lease. State tax return only You receive money for granting the exclusive use of a copyright throughout its life in a particular medium. State tax return only You transfer property to satisfy a debt. State tax return only You abandon property. State tax return only Your bank or other financial institution forecloses on your mortgage or repossesses your property. State tax return only Your property is damaged, destroyed, or stolen, and you receive property or money in payment. State tax return only Your property is condemned, or disposed of under the threat of condemnation, and you receive property or money in payment. State tax return only For details about damaged, destroyed, or stolen property, see Publication 547, Casualties, Disasters, and Thefts. State tax return only For details about other dispositions, see chapter 1 in Publication 544. State tax return only Nontaxable exchanges. State tax return only   Certain exchanges of property are not taxable. State tax return only This means any gain from the exchange is not recognized and you cannot deduct any loss. State tax return only Your gain or loss will not be recognized until you sell or otherwise dispose of the property you receive. State tax return only Like-kind exchanges. State tax return only   A like-kind exchange is the exchange of property for the same kind of property. State tax return only It is the most common type of nontaxable exchange. State tax return only To be a like-kind exchange, the property traded and the property received must be both of the following. State tax return only Business or investment property. State tax return only Like property. State tax return only   Report the exchange of like-kind property on Form 8824, Like-Kind Exchanges. State tax return only For more information about like-kind exchanges, see chapter 1 in Publication 544. State tax return only Installment sales. State tax return only   An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. State tax return only If you finance the buyer's purchase of your property, instead of having the buyer get a loan or mortgage from a third party, you probably have an installment sale. State tax return only   For more information about installment sales, see Publication 537, Installment Sales. State tax return only Sale of a business. State tax return only   The sale of a business usually is not a sale of one asset. State tax return only Instead, all the assets of the business are sold. State tax return only Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. State tax return only   Both the buyer and seller involved in the sale of a business must report to the IRS the allocation of the sales price among the business assets. State tax return only Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. State tax return only The buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred. State tax return only   For more information about the sale of a business, see chapter 2 of Publication 544. State tax return only How Do I Figure a Gain or Loss? Table 3-1. State tax return only How To Figure a Gain or Loss IF your. State tax return only . State tax return only . State tax return only THEN you have a. State tax return only . State tax return only . State tax return only Adjusted basis is more than the amount realized Loss. State tax return only Amount realized is more than the adjusted basis Gain. State tax return only Basis, adjusted basis, amount realized, fair market value, and amount recognized are defined next. State tax return only You need to know these definitions to figure your gain or loss. State tax return only Basis. State tax return only   The cost or purchase price of property is usually its basis for figuring the gain or loss from its sale or other disposition. State tax return only However, if you acquired the property by gift, inheritance, or in some way other than buying it, you must use a basis other than its cost. State tax return only For more information about basis, see Publication 551, Basis of Assets. State tax return only Adjusted basis. State tax return only   The adjusted basis of property is your original cost or other basis plus certain additions, and minus certain deductions such as depreciation and casualty losses. State tax return only In determining gain or loss, the costs of transferring property to a new owner, such as selling expenses, are added to the adjusted basis of the property. State tax return only Amount realized. State tax return only   The amount you realize from a disposition is the total of all money you receive plus the fair market value of all property or services you receive. State tax return only The amount you realize also includes any of your liabilities that were assumed by the buyer and any liabilities to which the property you transferred is subject, such as real estate taxes or a mortgage. State tax return only Fair market value. State tax return only   Fair market value is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. State tax return only Amount recognized. State tax return only   Your gain or loss realized from a disposition of property is usually a recognized gain or loss for tax purposes. State tax return only Recognized gains must be included in gross income. State tax return only Recognized losses are deductible from gross income. State tax return only However, a gain or loss realized from certain exchanges of property is not recognized. State tax return only See  Nontaxable exchanges, earlier. State tax return only Also, you cannot deduct a loss from the disposition of property held for personal use. State tax return only Is My Gain or Loss Ordinary or Capital? You must classify your gains and losses as either ordinary or capital gains or losses. State tax return only You must do this to figure your net capital gain or loss. State tax return only Generally, you will have a capital gain or loss if you dispose of a capital asset. State tax return only For the most part, everything you own and use for personal purposes or investment is a capital asset. State tax return only Certain property you use in your business is not a capital asset. State tax return only A gain or loss from a disposition of this property is an ordinary gain or loss. State tax return only However, if you held the property longer than 1 year, you may be able to treat the gain or loss as a capital gain or loss. State tax return only These gains and losses are called section 1231 gains and losses. State tax return only For more information about ordinary and capital gains and losses, see chapters 2 and 3 in Publication 544. State tax return only Is My Capital Gain or Loss Short Term or Long Term? If you have a capital gain or loss, you must determine whether it is long term or short term. State tax return only Whether a gain or loss is long or short term depends on how long you own the property before you dispose of it. State tax return only The time you own property before disposing of it is called the holding period. State tax return only Table 3-2. State tax return only Do I Have a Short-Term or Long-Term Gain or Loss? IF you hold the property. State tax return only . State tax return only . State tax return only THEN you have a. State tax return only . State tax return only . State tax return only 1 year or less Short-term capital gain or loss. State tax return only More than 1 year Long-term capital gain or loss. State tax return only For more information about short-term and long-term capital gains and losses, see chapter 4 of Publication 544. State tax return only Where Do I Report Gains and Losses? Report gains and losses from the following dispositions on the forms indicated. State tax return only The instructions for the forms explain how to fill them out. State tax return only Dispositions of business property and depreciable property. State tax return only   Use Form 4797. State tax return only If you have taxable gain, you may also have to use Schedule D (Form 1040). State tax return only Like-kind exchanges. State tax return only   Use Form 8824, Like-Kind Exchanges. State tax return only You may also have to use Form 4797 and Schedule D (Form 1040). State tax return only Installment sales. State tax return only   Use Form 6252, Installment Sale Income. State tax return only You may also have to use Form 4797 and Schedule D (Form 1040). State tax return only Casualties and thefts. State tax return only   Use Form 4684, Casualties and Thefts. State tax return only You may also have to use Form 4797. State tax return only Condemned property. State tax return only   Use Form 4797. State tax return only You may also have to use Schedule D (Form 1040). State tax return only Prev  Up  Next   Home   More Online Publications
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Affordable Care Act Tax Provisions News Archive

Health Care Tax Tips
Feb. 25, 2014 - New Health Care Tax Tips help people learn what they need to know about the Affordable Care Act for filing tax returns this year and in the future. You can view them on IRS.gov or subscribe for automatic email updates.

Employer Shared Responsibility
Feb. 10, 2014 - Final rules answer questions about compliance; ensure volunteers do not count as full-time employees; and phases in provisions for employers with 50-99 full-time employees and those who offer coverage to most but not all full-time workers.

Reporting Employer-Provided Health Coverage on Form W-2
Jan. 27, 2014 - Employers may need to report employer-sponsored health care coverage amounts on W-2 forms being issued this January 2014. Individuals do not have to pay taxes on these coverage amounts and should not report it as income.

IRS Notices address reliance and correction procedures for Tax Exempt Hospitals
Jan. 23, 2014 - Notices 2014-2 and 2014-3 provide the most recent guidance for Tax Exempt Hospitals under section 501(r) of the Internal Revenue Code.

Premium Tax Credit electronic flyer (IRS Publication 5120) released
Jan. 10, 2013 - If you get your health insurance coverage through the Health Insurance Marketplace, you may be eligible for the Premium Tax Credit. This tax credit can help make purchasing health insurance coverage more affordable for people with moderate incomes.

Medical Loss Ratio section 833 final regulations issued
Jan. 6, 2014 - IRS issued final regulations on January 6, 2014 that describe how the Medical Loss Ratio for purposes of section 833 is computed.

Health Insurance Marketplace Opens – find out more
Oct. 1, 2013 - The Marketplace is where you can find health insurance coverage options and enroll in the coverage that fits your budget and meets your needs.

You may be eligible for the Premium Tax Credit
Oct. 1, 2013 - Starting in 2014, if you get your health insurance coverage through the Health Insurance Marketplace, you may be eligible for the Premium Tax Credit.

Research trust fund fees due July 31 from health insurers and plan sponsors
July 19, 2013 – The new Patient-Centered Outcomes Research Trust Fund fees are due July 31, 2013 from health insurers and plan sponsors of self-insured plans. The fee is paid annually using Form 720, Quarterly Federal Excise Tax Return. The payment, paid through the Electronic Federal Tax Payment System (EFTPS), should be applied to the second quarter (in EFTPS, select Q2 for the Quarter under Tax Period on the "Business Tax Payment" page).

Healthcare Online Resource electronic flyer (IRS Publication 5093) released (pdf)
July 12, 2013 – Guide to federal web sites with health care information for Individuals, Families and Employers.

2014 Transition Relief for Information Reporting and Employer Shared Responsibility Payments announced – provisions optional for 2014 and mandatory for 2015 (Notice 2013-45)
July 11, 2013 - Transition Relief for 2014 Under § 6055 (Information Reporting for Insurers, Self-Insuring Employers and Other Providers), § 6056 (Information Reporting for Applicable Large Employers) and § 4980H (Employer Shared Responsibility Provisions).

Page Last Reviewed or Updated: 25-Mar-2014

 

The State Tax Return Only

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