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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Taxact 1040nr

Free Tax Filing For Low IncomeForm 1040x 2010Tax Amendment Deadline2009 TaxFree FileTax Filing 2014Taxes 2012 FormsHow Much Does It Cost To Amend A Tax ReturnFile 2012 Taxes H&r Block2010 Amended Tax Return InstructionsFile Taxes For FreeFile Taxes For FreeFree E File State Tax ReturnFree Site To File State TaxesPrior Year Tax ReturnAmend 2011 Taxes1040ez Tax Forms DownloadsTax Calculator 2012I Need To File An Amended Tax ReturnRee 1040 Ez Tax Filing OnlineIrs Gov 2012 Tax FormsIrs1040Amend Federal Tax Return2012 1040ez FormFree State Taxes And Federal2012 Federal Tax FormsForm 4868Fill 1040x Form OnlineH&r Block Free Tax File 2012Do Taxes Online 2010Ohio Free FileFile Free TaxesTax Act 2010 DownloadFile 1040x Online FreeIrs Gov Free FileIrs Tax Amendment FormHow To File 1040x ElectronicallyFile 2007 Taxes1040x Instructions DummiesWww H&rblock Com

Taxact 1040nr

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

The National Consumer Protection Technical Resource Center

Also known as Senior Medicare Patrol Programs (SMP), this organization assists Medicare beneficiaries and caregivers to avoid, detect and report healthcare fraud.

Contact the Agency or Department

Website: The National Consumer Protection Technical Resource Center

E-mail:

Address: PO Box 388
Waterloo, IA 50704-0388

Toll-free: 1-877-808-2468

The Taxact 1040nr

Taxact 1040nr 8. Taxact 1040nr   Qualified Tuition Program (QTP) Table of Contents Introduction What Is a Qualified Tuition ProgramDesignated beneficiary. Taxact 1040nr Half-time student. Taxact 1040nr How Much Can You Contribute Are Distributions TaxableFiguring the Taxable Portion of a Distribution Additional Tax on Taxable Distributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Introduction Qualified tuition programs (QTPs) are also called “529 plans. Taxact 1040nr ” States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student's qualified education expenses at a postsecondary institution. Taxact 1040nr Eligible educational institutions may establish and maintain programs that allow you to prepay a student's qualified education expenses. Taxact 1040nr If you prepay tuition, the student (designated beneficiary) will be entitled to a waiver or a payment of qualified education expenses. Taxact 1040nr You cannot deduct either payments or contributions to a QTP. Taxact 1040nr For information on a specific QTP, you will need to contact the state agency or eligible educational institution that established and maintains it. Taxact 1040nr What is the tax benefit of a QTP. Taxact 1040nr   No tax is due on a distribution from a QTP unless the amount distributed is greater than the beneficiary's adjusted qualified education expenses. Taxact 1040nr See Are Distributions Taxable , later, for more information. Taxact 1040nr    Even if a QTP is used to finance a student's education, the student or the student's parents still may be eligible to claim the American opportunity credit or the lifetime learning credit. Taxact 1040nr See Coordination With American Opportunity and Lifetime Learning Credits, later. Taxact 1040nr What Is a Qualified Tuition Program A qualified tuition program is a program set up to allow you to either prepay, or contribute to an account established for paying, a student's qualified education expenses at an eligible educational institution. Taxact 1040nr QTPs can be established and maintained by states (or agencies or instrumentalities of a state) and eligible educational institutions. Taxact 1040nr The program must meet certain requirements. Taxact 1040nr Your state government or the eligible educational institution in which you are interested can tell you whether or not they participate in a QTP. Taxact 1040nr Qualified education expenses. Taxact 1040nr   These are expenses related to enrollment or attendance at an Eligible educational institution (defined later). Taxact 1040nr As shown in the following list, to be qualified, some of the expenses must be required by the institution and some must be incurred by students who are enrolled at least half-time. Taxact 1040nr See Half-time student , later. Taxact 1040nr The following expenses must be required for enrollment or attendance of a Designated beneficiary (defined later) at an eligible educational institution. Taxact 1040nr Tuition and fees. Taxact 1040nr Books, supplies, and equipment. Taxact 1040nr Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible educational institution. Taxact 1040nr Expenses for room and board must be incurred by students who are enrolled at least half-time. Taxact 1040nr The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Taxact 1040nr The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Taxact 1040nr The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Taxact 1040nr You will need to contact the eligible educational institution for qualified room and board costs. Taxact 1040nr    For tax years after 2010, the purchase of computer technology or equipment is only a qualified education expense if the computer technology or equipment is required for enrollment or attendance at an eligible institution. Taxact 1040nr Designated beneficiary. Taxact 1040nr   The designated beneficiary is generally the student (or future student) for whom the QTP is intended to provide benefits. Taxact 1040nr The designated beneficiary can be changed after participation in the QTP begins. Taxact 1040nr If a state or local government or certain tax-exempt organizations purchase an interest in a QTP as part of a scholarship program, the designated beneficiary is the person who receives the interest as a scholarship. Taxact 1040nr Half-time student. Taxact 1040nr   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic workload for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Taxact 1040nr Eligible educational institution. Taxact 1040nr   For purposes of a QTP, this is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Taxact 1040nr S. Taxact 1040nr Department of Education. Taxact 1040nr It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Taxact 1040nr The educational institution should be able to tell you if it is an eligible educational institution. Taxact 1040nr   Certain educational institutions located outside the United States also participate in the U. Taxact 1040nr S. Taxact 1040nr Department of Education's Federal Student Aid (FSA) programs. Taxact 1040nr   How Much Can You Contribute Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified education expenses of the beneficiary. Taxact 1040nr There are no income restrictions on the individual contributors. Taxact 1040nr You can contribute to both a QTP and a Coverdell ESA in the same year for the same designated beneficiary. Taxact 1040nr   Are Distributions Taxable The part of a distribution representing the amount paid or contributed to a QTP does not have to be included in income. Taxact 1040nr This is a return of the investment in the plan. Taxact 1040nr The designated beneficiary generally does not have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified education expenses (defined under Figuring the Taxable Portion of a Distribution , later). Taxact 1040nr Earnings and return of investment. Taxact 1040nr    You will receive a Form 1099-Q, from each of the programs from which you received a QTP distribution in 2013. Taxact 1040nr The amount of your gross distribution (box 1) shown on each form will be divided between your earnings (box 2) and your basis, or return of investment (box 3). Taxact 1040nr Form 1099-Q should be sent to you by January 31, 2014. Taxact 1040nr Figuring the Taxable Portion of a Distribution To determine if total distributions for the year are more or less than the amount of qualified education expenses, you must compare the total of all QTP distributions for the tax year to the adjusted qualified education expenses. Taxact 1040nr Adjusted qualified education expenses. Taxact 1040nr   This amount is the total qualified education expenses reduced by any tax-free educational assistance. Taxact 1040nr Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Taxact 1040nr Taxable earnings. Taxact 1040nr   Use the following steps to figure the taxable part. Taxact 1040nr Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. Taxact 1040nr The numerator is the adjusted qualified education expenses paid during the year and the denominator is the total amount distributed during the year. Taxact 1040nr Subtract the amount figured in (1) from the total distributed earnings. Taxact 1040nr The result is the amount the beneficiary must include in income. Taxact 1040nr Report it on Form 1040 or Form 1040NR, line 21. Taxact 1040nr Example 1. Taxact 1040nr In 2007, Sara Clarke's parents opened a savings account for her with a QTP maintained by their state government. Taxact 1040nr Over the years they contributed $18,000 to the account. Taxact 1040nr The total balance in the account was $27,000 on the date the distribution was made. Taxact 1040nr In the summer of 2013, Sara enrolled in college and had $8,300 of qualified education expenses for the rest of the year. Taxact 1040nr She paid her college expenses from the following sources. Taxact 1040nr   Gift from parents $1,600     Partial tuition scholarship (tax-free) 3,100     QTP distribution 5,300           Before Sara can determine the taxable part of her QTP distribution, she must reduce her total qualified education expenses by any tax-free educational assistance. Taxact 1040nr   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Equals: Adjusted qualified  education expenses (AQEE) $5,200   Since the remaining expenses ($5,200) are less than the QTP distribution, part of the earnings will be taxable. Taxact 1040nr Sara's Form 1099-Q shows that $950 of the QTP distribution is earnings. Taxact 1040nr Sara figures the taxable part of the distributed earnings as follows. Taxact 1040nr   1. Taxact 1040nr $950 (earnings) × $5,200 AQEE  $5,300 distribution           =$932 (tax-free earnings)     2. Taxact 1040nr $950 (earnings)−$932 (tax-free earnings)     =$18 (taxable earnings)  Sara must include $18 in income (Form 1040, line 21) as distributed QTP earnings not used for adjusted qualified education expenses. Taxact 1040nr Coordination With American Opportunity and Lifetime Learning Credits An American opportunity or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Taxact 1040nr This means that after the beneficiary reduces qualified education expenses by tax-free educational assistance, he or she must further reduce them by the expenses taken into account in determining the credit. Taxact 1040nr Example 2. Taxact 1040nr Assume the same facts as in Example 1 , except that Sara's parents claimed an American opportunity credit of $2,500 (based on $4,000 expenses). Taxact 1040nr   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Minus: Expenses taken into account  in figuring American opportunity credit −4,000     Equals: Adjusted qualified  education expenses (AQEE) $1,200           The taxable part of the distribution is figured as follows. Taxact 1040nr   1. Taxact 1040nr $950 (earnings) × $1,200 AQEE  $5,300 distribution           =$215 (tax-free earnings)     2. Taxact 1040nr $950 (earnings)−$215 (tax-free earnings)     =$735 (taxable earnings)       Sara must include $735 in income (Form 1040, line 21). Taxact 1040nr This represents distributed earnings not used for adjusted qualified education expenses. Taxact 1040nr Coordination With Coverdell ESA Distributions If a designated beneficiary receives distributions from both a QTP and a Coverdell ESA in the same year, and the total of these distributions is more than the beneficiary's adjusted qualified higher education expenses, the expenses must be allocated between the distributions. Taxact 1040nr For purposes of this allocation, disregard any qualified elementary and secondary education expenses. Taxact 1040nr Example 3. Taxact 1040nr Assume the same facts as in Example 2 , except that instead of receiving a $5,300 distribution from her QTP, Sara received $4,600 from that account and $700 from her Coverdell ESA. Taxact 1040nr In this case, Sara must allocate her $1,200 of adjusted qualified higher education expenses (AQHEE) between the two distributions. Taxact 1040nr   $1,200 AQHEE × $700 ESA distribution  $5,300 total distribution = $158 AQHEE (ESA)     $1,200 AQHEE × $4,600 QTP distribution  $5,300 total distribution = $1,042 AQHEE (QTP)   Sara then figures the taxable portion of her Coverdell ESA distribution based on qualified higher education expenses of $158, and the taxable portion of her QTP distribution based on the other $1,042. Taxact 1040nr Note. Taxact 1040nr If you are required to allocate your expenses between Coverdell ESA and QTP distributions, and you have adjusted qualified elementary and secondary education expenses, see the examples in chapter 7, Coverdell Education Savings Account under Coordination With Qualified Tuition Program (QTP) Distributions . Taxact 1040nr Coordination With Tuition and Fees Deduction. Taxact 1040nr   A tuition and fees deduction can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Taxact 1040nr Losses on QTP Investments If you have a loss on your investment in a QTP account, you may be able to take the loss on your income tax return. Taxact 1040nr You can take the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Taxact 1040nr Your basis is the total amount of contributions to that QTP account. Taxact 1040nr You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. Taxact 1040nr If you have distributions from more than one QTP account during a year, you must combine the information (amount of distribution, basis, etc. Taxact 1040nr ) from all such accounts in order to determine your taxable earnings for the year. Taxact 1040nr By doing this, the loss from one QTP account reduces the distributed earnings (if any) from any other QTP accounts. Taxact 1040nr Example 1. Taxact 1040nr In 2013, Taylor received a final distribution of $1,000 from QTP #1. Taxact 1040nr His unrecovered basis in that account before the distribution was $3,000. Taxact 1040nr If Taylor itemizes his deductions, he can claim the $2,000 loss on Schedule A (Form 1040). Taxact 1040nr Example 2. Taxact 1040nr Assume the same facts as in Example 1 , except that Taylor also had a distribution of $9,000 from QTP #2, giving him total distributions for 2013 of $10,000. Taxact 1040nr His total basis in these distributions was $4,500 ($3,000 for QTP #1 and $1,500 for QTP #2). Taxact 1040nr Taylor's adjusted qualified education expenses for 2013 totaled $6,000. Taxact 1040nr In order to figure his taxable earnings, Taylor combines the two accounts and determines his taxable earnings as follows. Taxact 1040nr   1. Taxact 1040nr $10,000 (total distribution)−$4,500 (basis portion of distribution)     = $5,500 (earnings included in distribution)   2. Taxact 1040nr $5,500 (earnings) x $6,000 AQEE  $10,000 distribution           =$3,300 (tax-free earnings)     3. Taxact 1040nr $5,500 (earnings)−$3,300 (tax-free earnings)     =$2,200 (taxable earnings)                 Taylor must include $2,200 in income on Form 1040, line 21. Taxact 1040nr Because Taylor's accounts must be combined, he cannot deduct his $2,000 loss (QTP #1) on Schedule A (Form 1040). Taxact 1040nr Instead, the $2,000 loss reduces the total earnings that were distributed, thereby reducing his taxable earnings. Taxact 1040nr Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. Taxact 1040nr Exceptions. Taxact 1040nr   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. Taxact 1040nr Made because the designated beneficiary is disabled. Taxact 1040nr A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. Taxact 1040nr A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. Taxact 1040nr Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Taxact 1040nr Made on account of the attendance of the designated beneficiary at a U. Taxact 1040nr S. Taxact 1040nr military academy (such as the USNA at Annapolis). Taxact 1040nr This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. Taxact 1040nr S. Taxact 1040nr Code) attributable to such attendance. Taxact 1040nr Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier. Taxact 1040nr ) Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. Taxact 1040nr Figuring the additional tax. Taxact 1040nr    Use Part II of Form 5329, to figure any additional tax. Taxact 1040nr Report the amount on Form 1040, line 58, or Form 1040NR, line 56. Taxact 1040nr Rollovers and Other Transfers Assets can be rolled over or transferred from one QTP to another. Taxact 1040nr In addition, the designated beneficiary can be changed without transferring accounts. Taxact 1040nr Rollovers Any amount distributed from a QTP is not taxable if it is rolled over to another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse). Taxact 1040nr An amount is rolled over if it is paid to another QTP within 60 days after the date of the distribution. Taxact 1040nr Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. Taxact 1040nr These are not taxable distributions. Taxact 1040nr Members of the beneficiary's family. Taxact 1040nr   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. Taxact 1040nr Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Taxact 1040nr Brother, sister, stepbrother, or stepsister. Taxact 1040nr Father or mother or ancestor of either. Taxact 1040nr Stepfather or stepmother. Taxact 1040nr Son or daughter of a brother or sister. Taxact 1040nr Brother or sister of father or mother. Taxact 1040nr Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Taxact 1040nr The spouse of any individual listed above. Taxact 1040nr First cousin. Taxact 1040nr Example. Taxact 1040nr When Aaron graduated from college last year he had $5,000 left in his QTP. Taxact 1040nr He wanted to give this money to his younger brother, who was in junior high school. Taxact 1040nr In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his brother's QTP within 60 days of the distribution. Taxact 1040nr If the rollover is to another QTP for the same beneficiary, only one rollover is allowed within 12 months of a previous transfer to any QTP for that designated beneficiary. Taxact 1040nr Changing the Designated Beneficiary There are no income tax consequences if the designated beneficiary of an account is changed to a member of the beneficiary's family. Taxact 1040nr See Members of the beneficiary's family , earlier. Taxact 1040nr Example. Taxact 1040nr Assume the same situation as in the last example. Taxact 1040nr Instead of closing his QTP and paying the distribution into his brother's QTP, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his brother. Taxact 1040nr Prev  Up  Next   Home   More Online Publications