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2009 Tax Software

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2009 Tax Software

2009 tax software 15. 2009 tax software   Estimated Tax Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Special Estimated Tax Rules for Qualified FarmersQualified Farmer Special Rules for Qualified Farmers Estimated Tax Penalty for 2013 What's New Net Investment Income Tax. 2009 tax software . 2009 tax software  For tax years beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). 2009 tax software NIIT is a 3. 2009 tax software 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income (MAGI) over the threshold amount. 2009 tax software NIIT may need to be included when calculating your estimated tax. 2009 tax software For more information, see Publication 505,Tax Withholding and Estimated Tax. 2009 tax software Additional Medicare Tax. 2009 tax software  For tax years beginning in 2013, a 0. 2009 tax software 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. 2009 tax software You may need to include this amount when figuring your estimated tax. 2009 tax software For more information, see Publication 505. 2009 tax software Introduction Estimated tax is the method used to pay tax on income that is not subject to withholding. 2009 tax software See Publication 505 for the general rules and requirements for paying estimated tax. 2009 tax software If you are a qualified farmer, defined below, you are subject to the special rules covered in this chapter for paying estimated tax. 2009 tax software Topics - This chapter discusses: Special estimated tax rules for qualified farmers Estimated tax penalty Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. 2009 tax software S. 2009 tax software Individual Income Tax Return 1040-ES Estimated Tax for Individuals 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 16 for information about getting publications and forms. 2009 tax software Special Estimated Tax Rules for Qualified Farmers Special rules apply to the payment of estimated tax by individuals who are qualified farmers. 2009 tax software If you are not a qualified farmer as defined next, see Publication 505 for the estimated tax rules that apply. 2009 tax software Qualified Farmer An individual is a qualified farmer for 2013 if at least two-thirds of his or her gross income from all sources for 2012 or 2013 was from farming. 2009 tax software See Gross Income , next, for information on how to figure your gross income from all sources and see Gross Income From Farming , later, for information on how to figure your gross income from farming. 2009 tax software See also Percentage From Farming , later, for information on how to determine the percentage of your gross income from farming. 2009 tax software Gross Income Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from income tax. 2009 tax software On a joint return, you must add your spouse's gross income to your gross income. 2009 tax software To decide whether two-thirds of your gross income was from farming, use as your gross income the total of the following income (not loss) amounts from your tax return. 2009 tax software Wages, salaries, tips, etc. 2009 tax software Taxable interest. 2009 tax software Ordinary dividends. 2009 tax software Taxable refunds, credits, or offsets of state and local income taxes. 2009 tax software Alimony. 2009 tax software Gross business income from Schedule C (Form 1040). 2009 tax software Gross business receipts from Schedule C-EZ (Form 1040). 2009 tax software Capital gains from Schedule D (Form 1040). 2009 tax software Losses are not netted against gains. 2009 tax software Gains on sales of business property. 2009 tax software Taxable IRA distributions, pensions, annuities, and social security benefits. 2009 tax software Gross rental income from Schedule E (Form 1040). 2009 tax software Gross royalty income from Schedule E (Form 1040). 2009 tax software Taxable net income from an estate or trust reported on Schedule E (Form 1040). 2009 tax software Income from a Real Estate Mortgage Investment Conduit reported on Schedule E (Form 1040). 2009 tax software Gross farm rental income from Form 4835. 2009 tax software Gross farm income from Schedule F (Form 1040). 2009 tax software Your distributive share of gross income from a partnership, or limited liability company treated as a partnership, from Schedule K-1 (Form 1065). 2009 tax software Your pro rata share of gross income from an S corporation, from Schedule K-1 (Form 1120S). 2009 tax software Unemployment compensation. 2009 tax software Other income not included with any of the items listed above. 2009 tax software Gross Income From Farming Gross income from farming is income from cultivating the soil or raising agricultural commodities. 2009 tax software It includes the following amounts. 2009 tax software Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. 2009 tax software Income from a plantation, ranch, nursery, range, orchard, or oyster bed. 2009 tax software Crop shares for the use of your land. 2009 tax software Gains from sales of draft, breeding, dairy, or sporting livestock. 2009 tax software Gross income from farming is the total of the following amounts from your tax return. 2009 tax software Gross farm income from Schedule F (Form 1040). 2009 tax software Gross farm rental income from Form 4835. 2009 tax software Gross farm income from Schedule E (Form 1040), Parts II and III. 2009 tax software Gains from the sale of livestock used for draft, breeding, sport, or dairy purposes reported on Form 4797. 2009 tax software For more information about income from farming, see chapter 3. 2009 tax software Farm income does not include any of the following: Wages you receive as a farm employee. 2009 tax software Income you receive from contract grain harvesting and hauling with workers and machines you furnish. 2009 tax software Gains you receive from the sale of farm land and depreciable farm equipment. 2009 tax software Percentage From Farming Figure your gross income from all sources, discussed earlier. 2009 tax software Then figure your gross income from farming, discussed earlier. 2009 tax software Divide your farm gross income by your total gross income to determine the percentage of gross income from farming. 2009 tax software Example 1. 2009 tax software Jane Smith had the following total gross income and farm gross income amounts in 2013. 2009 tax software Gross Income   Total Farm Taxable interest $3,000   Dividends 500   Rental income (Sch E) 41,500   Farm income (Sch F) 75,000 $75,000 Gain (Form 4797) 5,000 5,000 Total $125,000 $80,000 Schedule D showed gain from the sale of dairy cows carried over from Form 4797 ($5,000) in addition to a loss from the sale of corporate stock ($2,000). 2009 tax software However, that loss is not netted against the gain to figure Ms. 2009 tax software Smith's total gross income or her gross farm income. 2009 tax software Her gross farm income is 64% of her total gross income ($80,000 ÷ $125,000 = 0. 2009 tax software 64). 2009 tax software Special Rules for Qualified Farmers The following special estimated tax rules apply if you are a qualified farmer for 2013. 2009 tax software You do not have to pay estimated tax if you file your 2013 tax return and pay all the tax due by March 3, 2014. 2009 tax software You do not have to pay estimated tax if your 2013 income tax withholding (including any amount applied to your 2013 estimated tax from your 2012 return) will be at least 662/3% (. 2009 tax software 6667) of the total tax shown on your 2013 tax return or 100% of the total tax shown on your 2012 return. 2009 tax software If you must pay estimated tax, you are required to make only one estimated tax payment (your required annual payment) by January 15, 2014, using special rules to figure the amount of the payment. 2009 tax software See Required Annual Payment , next, for details. 2009 tax software Figure 15-1 presents an overview of the special estimated tax rules that apply to qualified farmers. 2009 tax software Example 2. 2009 tax software Assume the same fact as in Example 1. 2009 tax software Ms. 2009 tax software Smith's gross farm income is only 64% of her total income. 2009 tax software Therefore, based on her 2013 income, she does not qualify to use the special estimated tax rules for qualified farmers. 2009 tax software However, she does qualify if at least two-thirds of her 2012 gross income was from farming. 2009 tax software Example 3. 2009 tax software Assume the same facts as in Example 1 except that Ms. 2009 tax software Smith's farm income from Schedule F was $90,000 instead of $75,000. 2009 tax software This made her total gross income $140,000 ($3,000 + $500 + $41,500 + $90,000 + $5,000) and her farm gross income $95,000 ($90,000 + $5,000). 2009 tax software She qualifies to use the special estimated tax rules for qualified farmers, since 67. 2009 tax software 9% (at least two-thirds) of her gross income is from farming ($95,000 ÷ $140,000 = . 2009 tax software 679). 2009 tax software Required Annual Payment If you are a qualified farmer and must pay estimated tax for 2013, use the worksheet on Form 1040-ES to figure the amount of your required annual payment. 2009 tax software Apply the following special rules for qualified farmers to the worksheet. 2009 tax software On line 14a, multiply line 13c by 662/3% (. 2009 tax software 6667). 2009 tax software On line 14b, enter 100% of the tax shown on your 2012 tax return regardless of the amount of your adjusted gross income. 2009 tax software For this purpose, the “tax shown on your 2012 tax return” is the amount on line 61 of your 2012 return modified by certain adjustments. 2009 tax software For more information, see chapter 4 of Publication 505. 2009 tax software Estimated Tax Penalty for 2013 If you do not pay all your required estimated tax for 2013 by January 15, 2014, or file your 2013 return and pay any tax due by March 3, 2014, you may owe a penalty. 2009 tax software Use Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to determine if you owe a penalty. 2009 tax software See the instructions for Form 2210-F. 2009 tax software Figure 15-1. 2009 tax software Estimated Tax for Farmers Please click here for the text description of the image. 2009 tax software Figure 2–A If you receive a penalty notice, do not ignore it, even if you think it is in error. 2009 tax software You may get a penalty notice even though you filed your return on time, attached Form 2210-F, and met the gross-income-from-farming requirement. 2009 tax software If you receive a penalty notice for underpaying estimated tax and you think it is in error, write to the address on the notice and explain why you think the notice is in error. 2009 tax software Include a computation similar to the one in Example 1 (earlier), showing that you met the gross income from farming requirement. 2009 tax software Prev  Up  Next   Home   More Online Publications
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Commissioner's Comments, Statements and Remarks

Written Testimony of IRS Commissioner John A. Koskinen before the House Oversight and Government Reform Committee on IRS Operations
March 26, 2014 — Commissioner Koskinen's written testimony before the House Oversight and Government Reform Committee on IRS operations.

Remarks of Acting Commissioner Werfel to the American Institute of Certified Public Accountants in Washington, DC
Nov. 5, 2013 — Prepared remarks of Acting Commissioner Danny Werfel to the American Institute of Certified Public Accountants in Washington, DC.

Oral Statement of Danny Werfel, Principal Deputy Commissioner, on the Affordable Care Act Before the House Ways and Means Committee
Aug. 1, 2013 — Principal Deputy Commissioner Danny Werfel gives an opening statement on the Affordable Care Act to the House Ways and Means Committee.

Prepared Remarks of Danny Werfel, Principal Deputy Commissioner, Before the 2013 IRS Nationwide Tax Forum
July 30, 2013 — IRS Principal Deputy Commissioner Danny Werfel speaks at a 2013 Nationwide Tax Forum taking place in Dallas, Tex.

Page Last Reviewed or Updated: 27-Mar-2014

The 2009 Tax Software

2009 tax software Publication 915 - Main Content Table of Contents Are Any of Your Benefits Taxable?Worksheet A. 2009 tax software Exemption from withholding. 2009 tax software 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. 2009 tax software When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 2009 tax software S. 2009 tax software 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. 2009 tax software Children's benefits. 2009 tax software   The rules in this publication apply to benefits received by children. 2009 tax software See Who is taxed , later. 2009 tax software The SSA issues Form SSA-1099 and Form SSA-1042S. 2009 tax software The RRB issues Form RRB-1099 and Form RRB-1042S. 2009 tax software These forms (tax statements) report the amounts paid and repaid, and taxes withheld for a tax year. 2009 tax software You may receive more than one of these forms for the same tax year. 2009 tax software See the Appendix at the end of this publication for more information. 2009 tax software Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. 2009 tax software The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is an error in the original. 2009 tax software 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. 2009 tax software 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. 2009 tax software Figuring total income. 2009 tax software   To figure the total of one-half of your benefits plus your other income, use Worksheet A, discussed later. 2009 tax software If the total is more than your base amount, part of your benefits may be taxable. 2009 tax software   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. 2009 tax software 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. 2009 tax software 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. 2009 tax software If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 2009 tax software Base amount. 2009 tax software   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. 2009 tax software Worksheet A. 2009 tax software   You can use Worksheet A to figure the amount of income to compare with your base amount. 2009 tax software This is a quick way to check whether some of your benefits may be taxable. 2009 tax software     Worksheet A. 2009 tax software A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. 2009 tax software Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2009 tax software Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. 2009 tax software (If you received more than one form, combine the amounts from box 5 and enter the total. 2009 tax software ) A. 2009 tax software   Note. 2009 tax software If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. 2009 tax software B. 2009 tax software Enter one-half of the amount on line A B. 2009 tax software   C. 2009 tax software Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2009 tax software   D. 2009 tax software Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. 2009 tax software   E. 2009 tax software Add lines B, C, and D E. 2009 tax software   Note. 2009 tax software Compare the amount on line E to your base amount for your filing status. 2009 tax software 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. 2009 tax software If the amount on line E is more than your base amount, some of your benefits may be taxable. 2009 tax software You need to complete Worksheet 1, shown later. 2009 tax software 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 . 2009 tax software   Example. 2009 tax software You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. 2009 tax software In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. 2009 tax software Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. 2009 tax software You also received a taxable pension of $22,800 and interest income of $500. 2009 tax software You did not have any tax-exempt interest income. 2009 tax software 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. 2009 tax software   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. 2009 tax software     Filled-in Worksheet A. 2009 tax software A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. 2009 tax software Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2009 tax software Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. 2009 tax software (If you received more than one form, combine the amounts from box 5 and enter the total. 2009 tax software ) A. 2009 tax software $11,000 Note. 2009 tax software If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. 2009 tax software B. 2009 tax software Enter one-half of the amount on line A B. 2009 tax software 5,500 C. 2009 tax software Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2009 tax software 23,300 D. 2009 tax software Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. 2009 tax software -0- E. 2009 tax software Add lines B, C, and D E. 2009 tax software $28,800 Note. 2009 tax software Compare the amount on line E to your base amount for your filing status. 2009 tax software 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. 2009 tax software If the amount on line E is more than your base amount, some of your benefits may be taxable. 2009 tax software You need to complete Worksheet 1, shown later. 2009 tax software 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 . 2009 tax software   Who is taxed. 2009 tax software   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. 2009 tax software 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. 2009 tax software 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. 2009 tax software Repayment of benefits. 2009 tax software   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 2009 tax software It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 2009 tax software If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 2009 tax software   Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. 2009 tax software Your repayments are shown in box 4. 2009 tax software The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 2009 tax software Use the amount in box 5 to figure whether any of your benefits are taxable. 2009 tax software Example. 2009 tax software In 2012, you received $3,000 in social security benefits, and in 2013 you received $2,700. 2009 tax software In March 2013, SSA notified you that you should have received only $2,500 in benefits in 2012. 2009 tax software During 2013, you repaid $500 to SSA. 2009 tax software The Form SSA-1099 you received for 2013 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). 2009 tax software The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500). 2009 tax software Tax withholding and estimated tax. 2009 tax software   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. 2009 tax software If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Statement. 2009 tax software   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. 2009 tax software For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. 2009 tax software U. 2009 tax software S. 2009 tax software citizens residing abroad. 2009 tax software   U. 2009 tax software S. 2009 tax software citizens who are residents of the following countries are exempt from U. 2009 tax software S. 2009 tax software tax on their benefits. 2009 tax software Canada. 2009 tax software Egypt. 2009 tax software Germany. 2009 tax software Ireland. 2009 tax software Israel. 2009 tax software Italy. 2009 tax software (You must also be a citizen of Italy for the exemption to apply. 2009 tax software ) Romania. 2009 tax software United Kingdom. 2009 tax software   The SSA will not withhold U. 2009 tax software S. 2009 tax software tax from your benefits if you are a U. 2009 tax software S. 2009 tax software citizen. 2009 tax software   The RRB will withhold U. 2009 tax software S. 2009 tax software tax from your benefits unless you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency information. 2009 tax software 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. 2009 tax software Contact the RRB to get this form. 2009 tax software Lawful permanent residents. 2009 tax software   For U. 2009 tax software S. 2009 tax software 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. 2009 tax software Social security benefits paid to a green card holder are not subject to 30% withholding. 2009 tax software 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. 2009 tax software SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. 2009 tax software 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. 2009 tax software 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. 2009 tax software S. 2009 tax software lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 2009 tax software I am filing a U. 2009 tax software S. 2009 tax software income tax return for the tax year as a resident alien reporting all of my worldwide income. 2009 tax software I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien. 2009 tax software ” Nonresident aliens. 2009 tax software   A nonresident alien is an individual who is not a citizen or resident of the United States. 2009 tax software If you are a nonresident alien, the rules discussed in this publication do not apply to you. 2009 tax software Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. 2009 tax software You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. 2009 tax software These forms will also show the tax rate and the amount of tax withheld from your benefits. 2009 tax software   Under tax treaties with the following countries, residents of these countries are exempt from U. 2009 tax software S. 2009 tax software tax on their benefits. 2009 tax software Canada. 2009 tax software Egypt. 2009 tax software Germany. 2009 tax software Ireland. 2009 tax software Israel. 2009 tax software Italy. 2009 tax software Japan. 2009 tax software Romania. 2009 tax software United Kingdom. 2009 tax software   Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U. 2009 tax software S. 2009 tax software tax if the benefits are for services performed for the United States, its subdivisions, or local government authorities. 2009 tax software   If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate. 2009 tax software   For more information on whether you are a nonresident alien, see Publication 519, U. 2009 tax software S. 2009 tax software Tax Guide for Aliens. 2009 tax software Exemption from withholding. 2009 tax software   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. 2009 tax software S. 2009 tax software tax from your benefits. 2009 tax software   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. 2009 tax software Contact the RRB to get this form. 2009 tax software Canadian or German social security benefits paid to U. 2009 tax software S. 2009 tax software residents. 2009 tax software   Under income tax treaties with Canada and Germany, social security benefits paid by those countries to U. 2009 tax software S. 2009 tax software residents are treated for U. 2009 tax software S. 2009 tax software income tax purposes as if they were paid under the social security legislation of the United States. 2009 tax software If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1, shown later. 2009 tax software How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. 2009 tax software You cannot use Form 1040EZ. 2009 tax software Reporting on Form 1040. 2009 tax software   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. 2009 tax software 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. 2009 tax software Reporting on Form 1040A. 2009 tax software   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. 2009 tax software 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. 2009 tax software Benefits not taxable. 2009 tax software   If you are filing Form 1040EZ, do not report any benefits on your tax return. 2009 tax software 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. 2009 tax software Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2009 tax software 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. 2009 tax software 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. 2009 tax software Generally, the higher that total amount, the greater the taxable part of your benefits. 2009 tax software Maximum taxable part. 2009 tax software   Generally, up to 50% of your benefits will be taxable. 2009 tax software However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 2009 tax software 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). 2009 tax software You are married filing separately and lived with your spouse at any time during 2013. 2009 tax software Which worksheet to use. 2009 tax software   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. 2009 tax software You can use either that worksheet or Worksheet 1 in this publication, unless any of the following situations applies to you. 2009 tax software You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. 2009 tax software 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. 2009 tax software Situation (1) does not apply and you take an exclusion for interest from qualified U. 2009 tax software S. 2009 tax software 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. 2009 tax software In this situation, you must use Worksheet 1 in this publication to figure your taxable benefits. 2009 tax software You received a lump-sum payment for an earlier year. 2009 tax software In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in this publication. 2009 tax software See Lump-Sum Election , later. 2009 tax software Examples A few examples you can use as a guide to figure the taxable part of your benefits follow. 2009 tax software Filled-in Worksheet 1. 2009 tax software 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. 2009 tax software 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). 2009 tax software None of your benefits are taxable for 2013. 2009 tax software For more information, see Repayments More Than Gross Benefits . 2009 tax software If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2009 tax software S. 2009 tax software 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. 2009 tax software Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2009 tax software 1. 2009 tax software Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2009 tax software Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2009 tax software $5,980         2. 2009 tax software Enter one-half of line 1 2. 2009 tax software 2,990     3. 2009 tax software 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. 2009 tax software 28,990     4. 2009 tax software Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2009 tax software -0-     5. 2009 tax software 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. 2009 tax software -0-     6. 2009 tax software Combine lines 2, 3, 4, and 5 6. 2009 tax software 31,980     7. 2009 tax software 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. 2009 tax software  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2009 tax software -0-     8. 2009 tax software Is the amount on line 7 less than the amount on line 6?             No. 2009 tax software None of your social security benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2009 tax software             Yes. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software 31,980     9. 2009 tax software 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. 2009 tax software 25,000       Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 9 less than the amount on line 8?             No. 2009 tax software None of your benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2009 tax software 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. 2009 tax software             Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software 6,980     11. 2009 tax software 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. 2009 tax software 9,000     12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software -0-     13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software 6,980     14. 2009 tax software Enter one-half of line 13 14. 2009 tax software 3,490     15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software 2,990     16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software -0-     17. 2009 tax software Add lines 15 and 16 17. 2009 tax software 2,990     18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software 5,083     19. 2009 tax software Taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18. 2009 tax software Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2009 tax software $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. 2009 tax software         Example 1. 2009 tax software George White is single and files Form 1040 for 2013. 2009 tax software 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. 2009 tax software He received a Form SSA-1099 in January 2014 that shows his net social security benefits of $5,980 in box 5. 2009 tax software   To figure his taxable benefits, George completes Worksheet 1, shown below. 2009 tax software On line 20a of his Form 1040, George enters his net benefits of $5,980. 2009 tax software On line 20b, he enters his taxable benefits of $2,990. 2009 tax software Example 2. 2009 tax software Ray and Alice Hopkins file a joint return on Form 1040A for 2013. 2009 tax software Ray is retired and received a fully taxable pension of $15,500. 2009 tax software He also received social security benefits and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. 2009 tax software Alice worked during the year and had wages of $14,000. 2009 tax software She made a deductible payment to her IRA account of $1,000. 2009 tax software Ray and Alice have two savings accounts with a total of $250 in taxable interest income. 2009 tax software They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. 2009 tax software They find none of Ray's social security benefits are taxable. 2009 tax software On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. 2009 tax software Filled-in Worksheet 1. 2009 tax software 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. 2009 tax software 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). 2009 tax software None of your benefits are taxable for 2013. 2009 tax software For more information, see Repayments More Than Gross Benefits . 2009 tax software If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2009 tax software S. 2009 tax software 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. 2009 tax software Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2009 tax software 1. 2009 tax software Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2009 tax software Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2009 tax software $5,600         2. 2009 tax software Enter one-half of line 1 2. 2009 tax software 2,800     3. 2009 tax software 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. 2009 tax software 29,750     4. 2009 tax software Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2009 tax software -0-     5. 2009 tax software 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. 2009 tax software -0-     6. 2009 tax software Combine lines 2, 3, 4, and 5 6. 2009 tax software 32,550     7. 2009 tax software 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. 2009 tax software  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2009 tax software 1,000     8. 2009 tax software Is the amount on line 7 less than the amount on line 6?             No. 2009 tax software None of your social security benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2009 tax software             Yes. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software 31,550     9. 2009 tax software 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. 2009 tax software 32,000       Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 9 less than the amount on line 8?             No. 2009 tax software None of your benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2009 tax software 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. 2009 tax software             Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software       11. 2009 tax software 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. 2009 tax software       12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software       13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software       14. 2009 tax software Enter one-half of line 13 14. 2009 tax software       15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software       16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software       17. 2009 tax software Add lines 15 and 16 17. 2009 tax software       18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software       19. 2009 tax software Taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18. 2009 tax software Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2009 tax software         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. 2009 tax software         Example 3. 2009 tax software Joe and Betty Johnson file a joint return on Form 1040 for 2013. 2009 tax software Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. 2009 tax software Joe's Form RRB-1099 shows $10,000 in box 5. 2009 tax software Betty is a retired government worker and received a fully taxable pension of $38,000. 2009 tax software They had $2,300 in taxable interest income plus interest of $200 on a qualified U. 2009 tax software S. 2009 tax software savings bond. 2009 tax software The savings bond interest qualified for the exclusion. 2009 tax software They figure their taxable benefits by completing Worksheet 1 below. 2009 tax software Because they have qualified U. 2009 tax software S. 2009 tax software 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. 2009 tax software On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). 2009 tax software 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. 2009 tax software (See Maximum taxable part under How Much Is Taxable earlier. 2009 tax software ) Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. 2009 tax software Filled-in Worksheet 1. 2009 tax software 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. 2009 tax software 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). 2009 tax software None of your benefits are taxable for 2013. 2009 tax software For more information, see Repayments More Than Gross Benefits . 2009 tax software If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2009 tax software S. 2009 tax software 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. 2009 tax software Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2009 tax software 1. 2009 tax software Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2009 tax software Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2009 tax software $10,000         2. 2009 tax software Enter one-half of line 1 2. 2009 tax software 5,000     3. 2009 tax software 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. 2009 tax software 40,500     4. 2009 tax software Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2009 tax software -0-     5. 2009 tax software 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. 2009 tax software -0-     6. 2009 tax software Combine lines 2, 3, 4, and 5 6. 2009 tax software 45,500     7. 2009 tax software 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. 2009 tax software  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2009 tax software -0-     8. 2009 tax software Is the amount on line 7 less than the amount on line 6?             No. 2009 tax software None of your social security benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2009 tax software             Yes. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software 45,500     9. 2009 tax software 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. 2009 tax software 32,000       Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 9 less than the amount on line 8?             No. 2009 tax software None of your benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2009 tax software 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. 2009 tax software             Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software 13,500     11. 2009 tax software 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. 2009 tax software 12,000     12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software 1,500     13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software 12,000     14. 2009 tax software Enter one-half of line 13 14. 2009 tax software 6,000     15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software 5,000     16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software 1,275     17. 2009 tax software Add lines 15 and 16 17. 2009 tax software 6,275     18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software 8,500     19. 2009 tax software Taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18. 2009 tax software Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2009 tax software $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. 2009 tax software         Filled-in Worksheet 1. 2009 tax software 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. 2009 tax software 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). 2009 tax software None of your benefits are taxable for 2013. 2009 tax software For more information, see Repayments More Than Gross Benefits . 2009 tax software If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2009 tax software S. 2009 tax software 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. 2009 tax software Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2009 tax software 1. 2009 tax software Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2009 tax software Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2009 tax software $4,000         2. 2009 tax software Enter one-half of line 1 2. 2009 tax software 2,000     3. 2009 tax software 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. 2009 tax software 8,000     4. 2009 tax software Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2009 tax software -0-     5. 2009 tax software 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. 2009 tax software -0-     6. 2009 tax software Combine lines 2, 3, 4, and 5 6. 2009 tax software 10,000     7. 2009 tax software 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. 2009 tax software  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2009 tax software -0-     8. 2009 tax software Is the amount on line 7 less than the amount on line 6?             No. 2009 tax software None of your social security benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2009 tax software             Yes. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software 10,000     9. 2009 tax software 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. 2009 tax software         Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 9 less than the amount on line 8?             No. 2009 tax software None of your benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2009 tax software 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. 2009 tax software             Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software       11. 2009 tax software 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. 2009 tax software       12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software       13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software       14. 2009 tax software Enter one-half of line 13 14. 2009 tax software       15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software       16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software       17. 2009 tax software Add lines 15 and 16 17. 2009 tax software 8,500     18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software 3,400     19. 2009 tax software Taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18. 2009 tax software Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2009 tax software $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. 2009 tax software         Example 4. 2009 tax software Bill and Eileen Jones are married and live together, but file separate Form 1040 returns for 2013. 2009 tax software Bill earned $8,000 during 2013. 2009 tax software The only other income he had for the year was $4,000 net social security benefits (box 5 of his Form SSA-1099). 2009 tax software Bill figures his taxable benefits by completing Worksheet 1 below. 2009 tax software 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. 2009 tax software See How Much Is Taxable earlier. 2009 tax software Bill enters $4,000 on his Form 1040, line 20a, and $3,400 on Form 1040, line 20b. 2009 tax software 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. 2009 tax software 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. 2009 tax software No part of the lump-sum death benefit is subject to tax. 2009 tax software Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 2009 tax software 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. 2009 tax software You can elect this method if it lowers your taxable benefits. 2009 tax software 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. 2009 tax software Then you subtract any taxable benefits for that year that you previously reported. 2009 tax software The remainder is the taxable part of the lump-sum payment. 2009 tax software Add it to the taxable part of your benefits for 2013 (figured without the lump-sum payment for the earlier year). 2009 tax software Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. 2009 tax software Do not file an amended return for the earlier year. 2009 tax software Will the lump-sum election method lower your taxable benefits?   To find out, take the following steps. 2009 tax software Complete Worksheet 1 in this publication. 2009 tax software Complete Worksheet 2 and Worksheet 3 as appropriate. 2009 tax software Use Worksheet 2 if your lump-sum payment was for a year after 1993. 2009 tax software Use Worksheet 3 if it was for 1993 or an earlier year. 2009 tax software Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received the lump-sum payment. 2009 tax software Complete Worksheet 4. 2009 tax software Compare the taxable benefits on line 19 of Worksheet 1 with the taxable benefits on line 21 of Worksheet 4. 2009 tax software 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. 2009 tax software Making the election. 2009 tax software   If you elect to report your taxable benefits under the lump-sum election method, follow the instructions at the bottom of Worksheet 4. 2009 tax software Do not attach the completed worksheets to your return. 2009 tax software Keep them with your records. 2009 tax software    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. 2009 tax software Lump-sum payment reported on Form SSA-1099 or RRB-1099. 2009 tax software   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. 2009 tax software That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. 2009 tax software The form will also show the year (or years) the payment is for. 2009 tax software However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2011. 2009 tax software You must contact the RRB for a breakdown by year for any amount shown in box 9. 2009 tax software Example Jane Jackson is single. 2009 tax software In 2012 she applied for social security disability benefits but was told she was ineligible. 2009 tax software She appealed the decision and won. 2009 tax software In 2013, she received a lump-sum payment of $6,000, of which $2,000 was for 2012 and $4,000 was for 2013. 2009 tax software Jane also received $5,000 in social security benefits in 2013, so her total benefits in 2013 were $11,000. 2009 tax software Jane's other income for 2012 and 2013 is as follows. 2009 tax software   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. 2009 tax software She does not need to complete Worksheet 3 because her lump-sum payment was for years after 1993. 2009 tax software Jane completes Worksheet 1 to find the amount of her taxable benefits for 2013 under the regular method. 2009 tax software She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2012 under the lump-sum election method. 2009 tax software She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits. 2009 tax software After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21, and Worksheet 1, line 19. 2009 tax software Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. 2009 tax software To do this, she prints “LSE” to the left of Form 1040, line 20a. 2009 tax software She then enters $11,000 on Form 1040, line 20a, and her taxable benefits of $2,500 on line 20b. 2009 tax software Jane's filled-in worksheets (1, 2, and 4) follow. 2009 tax software Jane Jackson's Filled-in Worksheet 1. 2009 tax software 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. 2009 tax software 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). 2009 tax software None of your benefits are taxable for 2013. 2009 tax software For more information, see Repayments More Than Gross Benefits . 2009 tax software If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2009 tax software S. 2009 tax software 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. 2009 tax software Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2009 tax software 1. 2009 tax software Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2009 tax software Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2009 tax software $11,000         2. 2009 tax software Enter one-half of line 1 2. 2009 tax software 5,500     3. 2009 tax software 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. 2009 tax software 25,500     4. 2009 tax software Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2009 tax software -0-     5. 2009 tax software 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. 2009 tax software -0-     6. 2009 tax software Combine lines 2, 3, 4, and 5 6. 2009 tax software 31,000     7. 2009 tax software 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. 2009 tax software  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2009 tax software -0-     8. 2009 tax software Is the amount on line 7 less than the amount on line 6?             No. 2009 tax software None of your social security benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2009 tax software             Yes. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software 31,000     9. 2009 tax software 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. 2009 tax software 25,000       Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 9 less than the amount on line 8?             No. 2009 tax software None of your benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2009 tax software 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. 2009 tax software             Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software 6,000     11. 2009 tax software 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. 2009 tax software 9,000     12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software -0-     13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software 6,000     14. 2009 tax software Enter one-half of line 13 14. 2009 tax software 3,000     15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software 3,000     16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software -0-     17. 2009 tax software Add lines 15 and 16 17. 2009 tax software 3,000     18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software 9,350     19. 2009 tax software Taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18. 2009 tax software Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2009 tax software $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. 2009 tax software         Jane Jackson's Filled-in Worksheet 2. 2009 tax software Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 2012 1. 2009 tax software 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. 2009 tax software $2,000           Note. 2009 tax software If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. 2009 tax software Otherwise, go on to line 2. 2009 tax software             2. 2009 tax software Enter one-half of line 1 2. 2009 tax software 1,000   3. 2009 tax software Enter your adjusted gross income for the earlier year 3. 2009 tax software 23,000   4. 2009 tax software Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. 2009 tax software S. 2009 tax software 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. 2009 tax software -0-   5. 2009 tax software Enter any tax-exempt interest received in the earlier year 5. 2009 tax software -0-   6. 2009 tax software Add lines 2 through 5 6. 2009 tax software 24,000   7. 2009 tax software Enter your taxable benefits for the earlier year that you previously reported 7. 2009 tax software -0-   8. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software 24,000   9. 2009 tax software 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. 2009 tax software 25,000     Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 8 more than the amount on line 9?       No. 2009 tax software Skip lines 10 through 20 and enter -0- on line 21. 2009 tax software       Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software     11. 2009 tax software 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. 2009 tax software     12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software     13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software     14. 2009 tax software Enter one-half of line 13 14. 2009 tax software     15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software     16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software     17. 2009 tax software Add lines 15 and 16 17. 2009 tax software     18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software     19. 2009 tax software Refigured taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18 19. 2009 tax software     20. 2009 tax software Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. 2009 tax software     21. 2009 tax software Additional taxable benefits. 2009 tax software Subtract line 20 from line 19. 2009 tax software Also enter this amount on Worksheet 4, line 20 21. 2009 tax software -0-     Do not file an amended return for this earlier year. 2009 tax software Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. 2009 tax software   Jane Jackson's Filled-in Worksheet 4. 2009 tax software 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. 2009 tax software 1. 2009 tax software 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. 2009 tax software $9,000         Note. 2009 tax software If line 1 is zero or less, skip lines 2 through 18, enter -0- on line 19 and go to line 20. 2009 tax software Otherwise, go on to line 2. 2009 tax software           2. 2009 tax software Enter one-half of line 1 2. 2009 tax software 4,500   3. 2009 tax software Enter the amount from Worksheet 1, line 3 3. 2009 tax software 25,500   4. 2009 tax software Enter the amount from Worksheet 1, line 4 4. 2009 tax software -0-   5. 2009 tax software Enter the amount from Worksheet 1, line 5 5. 2009 tax software -0-   6. 2009 tax software Combine lines 2, 3, 4, and 5 6. 2009 tax software 30,000   7. 2009 tax software Enter the amount from Worksheet 1, line 7 7. 2009 tax software -0-   8. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software 30,000   9. 2009 tax software Enter the amount from Worksheet 1, line 9. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then, go to line 18 9. 2009 tax software 25,000   10. 2009 tax software Is the amount on line 8 more than the amount on line 9? No. 2009 tax software Skip lines 10 through 18, enter -0- on line 19, and go to line 20. 2009 tax software  Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software 5,000   11. 2009 tax software Enter the amount from Worksheet 1, line 11 11. 2009 tax software 9,000   12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software -0-   13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software 5,000   14. 2009 tax software Enter one-half of line 13 14. 2009 tax software 2,500   15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software 2,500   16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software -0-   17. 2009 tax software Add lines 15 and 16 17. 2009 tax software 2,500   18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software 7,650   19. 2009 tax software Enter the smaller of line 17 or line 18 19. 2009 tax software 2,500   20. 2009 tax software 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. 2009 tax software -0-   21. 2009 tax software Taxable benefits under lump-sum election method. 2009 tax software Add lines 19 and 20 21. 2009 tax software $2,500   Next. 2009 tax software Is line 21 above smaller than Worksheet 1, line 19? No. 2009 tax software Do not use this method to figure your taxable benefits. 2009 tax software Follow the instructions on Worksheet 1 to report your benefits. 2009 tax software  Yes. 2009 tax software You can elect to report your taxable benefits under this method. 2009 tax software To elect this method:     Enter “LSE” to the left of Form 1040, line 20a, or Form 1040A, line 14a. 2009 tax software If line 21 above is zero, follow the instructions in line 10 for “No” on Worksheet 1. 2009 tax software Otherwise: Enter the amount from Worksheet 1, line 1, on Form 1040, line 20a, or on Form 1040A, line 14a. 2009 tax software Enter the amount from line 21 above on Form 1040, line 20b, or on Form 1040A, line 14b. 2009 tax software 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. 2009 tax software   Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. 2009 tax software Disability payments. 2009 tax software   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. 2009 tax software 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. 2009 tax software If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. 2009 tax software 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. 2009 tax software Legal expenses. 2009 tax software   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. 2009 tax software   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. 2009 tax software 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. 2009 tax software 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. 2009 tax software Do not use Worksheet 1 in this case. 2009 tax software 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. 2009 tax software If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. 2009 tax software Joint return. 2009 tax software   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. 2009 tax software You do this to get your net benefits when figuring if your combined benefits are taxable. 2009 tax software Example. 2009 tax software John and Mary file a joint return for 2013. 2009 tax software John received Form SSA-1099 showing $3,000 in box 5. 2009 tax software Mary also received Form SSA-1099 and the amount in box 5 was ($500). 2009 tax software 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. 2009 tax software Repayment of benefits received in an earlier year. 2009 tax software   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. 2009 tax software Deduction $3,000 or less. 2009 tax software   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. 2009 tax software Claim it on Schedule A (Form 1040), line 23. 2009 tax software Deduction more than $3,000. 2009 tax software   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. 2009 tax software Figure your tax for 2013 in the following steps: Figure the tax without the itemized deduction included on Schedule A, line 28. 2009 tax software 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. 2009 tax software Then refigure the tax for that year. 2009 tax software Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. 2009 tax software Subtract the result in (c) from the result in (a). 2009 tax software   Compare the tax figured in methods (1) and (2). 2009 tax software Your tax for 2013 is the smaller of the two amounts. 2009 tax software If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. 2009 tax software If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. 2009 tax software Check box d and enter “I. 2009 tax software R. 2009 tax software C. 2009 tax software 1341” in the space next to that box. 2009 tax software If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. 2009 tax software 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). 2009 tax software Worksheet 1. 2009 tax software 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. 2009 tax software 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). 2009 tax software None of your benefits are taxable for 2013. 2009 tax software For more information, see Repayments More Than Gross Benefits . 2009 tax software If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2009 tax software S. 2009 tax software 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. 2009 tax software Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2009 tax software 1. 2009 tax software Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2009 tax software Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2009 tax software           2. 2009 tax software Enter one-half of line 1 2. 2009 tax software       3. 2009 tax software 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. 2009 tax software       4. 2009 tax software Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2009 tax software       5. 2009 tax software 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. 2009 tax software       6. 2009 tax software Combine lines 2, 3, 4, and 5 6. 2009 tax software       7. 2009 tax software 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. 2009 tax software  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2009 tax software       8. 2009 tax software Is the amount on line 7 less than the amount on line 6?             No. 2009 tax software None of your social security benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2009 tax software             Yes. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software       9. 2009 tax software 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. 2009 tax software         Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 9 less than the amount on line 8?             No. 2009 tax software None of your benefits are taxable. 2009 tax software Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2009 tax software 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. 2009 tax software             Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software       11. 2009 tax software 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. 2009 tax software       12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software       13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software       14. 2009 tax software Enter one-half of line 13 14. 2009 tax software       15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software       16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software       17. 2009 tax software Add lines 15 and 16 17. 2009 tax software       18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software       19. 2009 tax software Taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18. 2009 tax software Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2009 tax software         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. 2009 tax software         Worksheet 2. 2009 tax software Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 1. 2009 tax software 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. 2009 tax software             Note. 2009 tax software If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. 2009 tax software Otherwise, go on to line 2. 2009 tax software             2. 2009 tax software Enter one-half of line 1 2. 2009 tax software     3. 2009 tax software Enter your adjusted gross income for the earlier year 3. 2009 tax software     4. 2009 tax software Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. 2009 tax software S. 2009 tax software 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. 2009 tax software     5. 2009 tax software Enter any tax-exempt interest received in the earlier year 5. 2009 tax software     6. 2009 tax software Add lines 2 through 5 6. 2009 tax software     7. 2009 tax software Enter your taxable benefits for the earlier year that you previously reported 7. 2009 tax software     8. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software     9. 2009 tax software 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. 2009 tax software       Note. 2009 tax software 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% (. 2009 tax software 85) and enter the result on line 17. 2009 tax software Then go to line 18. 2009 tax software         10. 2009 tax software Is the amount on line 8 more than the amount on line 9?       No. 2009 tax software Skip lines 10 through 20 and enter -0- on line 21. 2009 tax software       Yes. 2009 tax software Subtract line 9 from line 8 10. 2009 tax software     11. 2009 tax software 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. 2009 tax software     12. 2009 tax software Subtract line 11 from line 10. 2009 tax software If zero or less, enter -0- 12. 2009 tax software     13. 2009 tax software Enter the smaller of line 10 or line 11 13. 2009 tax software     14. 2009 tax software Enter one-half of line 13 14. 2009 tax software     15. 2009 tax software Enter the smaller of line 2 or line 14 15. 2009 tax software     16. 2009 tax software Multiply line 12 by 85% (. 2009 tax software 85). 2009 tax software If line 12 is zero, enter -0- 16. 2009 tax software     17. 2009 tax software Add lines 15 and 16 17. 2009 tax software     18. 2009 tax software Multiply line 1 by 85% (. 2009 tax software 85) 18. 2009 tax software     19. 2009 tax software Refigured taxable benefits. 2009 tax software Enter the smaller of line 17 or line 18 19. 2009 tax software     20. 2009 tax software Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. 2009 tax software     21. 2009 tax software Additional taxable benefits. 2009 tax software Subtract line 20 from line 19. 2009 tax software Also enter this amount on Worksheet 4, line 20 21. 2009 tax software       Do not file an amended return for this earlier year. 2009 tax software Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. 2009 tax software   Worksheet 3. 2009 tax software Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994) Enter earlier year 1. 2009 tax software 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. 2009 tax software           Note. 2009 tax software If line 1 is zero or less, skip lines 2 through 13 and enter -0- on line 14. 2009 tax software Otherwise, go on to line 2. 2009 tax software           2. 2009 tax software Enter one-half of line 1 2. 2009 tax software     3. 2009 tax software Enter your adjusted gross income for the earlier year 3. 2009 tax software     4. 2009 tax software Enter the total of any exclusions/adjustments you claimed in the earlier year for: Qualified U. 2009 tax software S. 2009 tax software 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. 2009 tax software     5. 2009 tax software Enter any tax-exempt interest received in the earlier year 5. 2009 tax software     6. 2009 tax software Add lines 2 through 5 6. 2009 tax software     7. 2009 tax software Enter your taxable benefits for the earlier year that you previously reported 7. 2009 tax software     8. 2009 tax software Subtract line 7 from line 6 8. 2009 tax software     9. 2009 tax software 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. 2009 tax software     10. 2009 tax software Is the amount on line 8 more than the amount on line 9? No. 2009 tax software Skip lines 10 through 13 and enter -0- on line 14. 2009 tax software  Yes. 2009 tax software Subtract line 9 from line 8. 2009 tax software 10. 2009 tax software     11. 2009 tax software Enter one-half of line 10 11. 2009 tax software     12. 2009 tax software Refigured taxable benefits. 2009 tax software Enter the smaller of line 2 or line 11 12. 2009 tax software     13. 2009 tax software Enter your taxable benefits for the earlier year (or as refigured due to a previous