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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

How Do You Amend Your Taxes

2011 1040 Income Tax FormHow Do You Ammend A Tax ReturnIrs Gov Form 1040Free 2007 Tax Software DownloadTax Act 2011File 2009 Taxes Online Free State And FederalFree Electronic Tax FilingHow To Get A 1040x FormFile An AmendmentTaxes LateFree State Tax Filing OnlineIrs Tax Form 10402012 Free Tax Filing OnlineHow To Amend Federal Tax Return 20121040ez 2012 Form1040nr Ez 20121040ez State Tax FormHow To Amend A Tax Return 2012Free FileWww Irs Gov VitaFile 2012 Taxes TurbotaxFreetaxusa20111040 Ez Form 2011Free Tax EfileTax Forms EzHow Do I File My 2010 TaxesOnline 1040x FilingE File A 1040x1040 Ez Online FilingFreefile Irs GovTax Act Free 2012Where Can I File 2012 Taxes Online FreeHow To File 2010 TaxesCan You E File 2012 Taxes NowState Taxes Online FreeTurbo Tax 2011 Download1040ezTax Return 2012Irs Form 1040 Ez InstructionsFree Online Income Tax Filing

How Do You Amend Your Taxes

How do you amend your taxes 5. How do you amend your taxes   Wages, Salaries, and Other Earnings Table of Contents Reminder Introduction Useful Items - You may want to see: Employee CompensationBabysitting. How do you amend your taxes Miscellaneous Compensation Fringe Benefits Retirement Plan Contributions Stock Options Restricted Property Special Rules for Certain EmployeesClergy Members of Religious Orders Foreign Employer Military Volunteers Sickness and Injury BenefitsDisability Pensions Long-Term Care Insurance Contracts Workers' Compensation Other Sickness and Injury Benefits Reminder Foreign income. How do you amend your taxes   If you are a U. How do you amend your taxes S. How do you amend your taxes citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U. How do you amend your taxes S. How do you amend your taxes law. How do you amend your taxes This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. How do you amend your taxes This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). How do you amend your taxes If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. How do you amend your taxes For details, see Publication 54, Tax Guide for U. How do you amend your taxes S. How do you amend your taxes Citizens and Resident Aliens Abroad. How do you amend your taxes Introduction This chapter discusses compensation received for services as an employee, such as wages, salaries, and fringe benefits. How do you amend your taxes The following topics are included. How do you amend your taxes Bonuses and awards. How do you amend your taxes Special rules for certain employees. How do you amend your taxes Sickness and injury benefits. How do you amend your taxes The chapter explains what income is included in the employee's gross income and what is not included. How do you amend your taxes Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income Employee Compensation This section discusses various types of employee compensation including fringe benefits, retirement plan contributions, stock options, and restricted property. How do you amend your taxes Form W-2. How do you amend your taxes    If you are an employee, you should receive Form W-2 from your employer showing the pay you received for your services. How do you amend your taxes Include your pay on line 7 of Form 1040 or Form 1040A, or on line 1 of Form 1040EZ, even if you do not receive a Form W-2. How do you amend your taxes   If you performed services, other than as an independent contractor, and your employer did not withhold social security and Medicare taxes from your pay, you must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, with your Form 1040. How do you amend your taxes These wages must be included on line 7 of Form 1040. How do you amend your taxes See Form 8919 for more information. How do you amend your taxes Childcare providers. How do you amend your taxes    If you provide childcare, either in the child's home or in your home or other place of business, the pay you receive must be included in your income. How do you amend your taxes If you are not an employee, you are probably self-employed and must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. How do you amend your taxes You generally are not an employee unless you are subject to the will and control of the person who employs you as to what you are to do and how you are to do it. How do you amend your taxes Babysitting. How do you amend your taxes   If you babysit for relatives or neighborhood children, whether on a regular basis or only periodically, the rules for childcare providers apply to you. How do you amend your taxes Miscellaneous Compensation This section discusses different types of employee compensation. How do you amend your taxes Advance commissions and other earnings. How do you amend your taxes   If you receive advance commissions or other amounts for services to be performed in the future and you are a cash-method taxpayer, you must include these amounts in your income in the year you receive them. How do you amend your taxes    If you repay unearned commissions or other amounts in the same year you receive them, reduce the amount included in your income by the repayment. How do you amend your taxes If you repay them in a later tax year, you can deduct the repayment as an itemized deduction on your Schedule A (Form 1040), or you may be able to take a credit for that year. How do you amend your taxes See Repayments in chapter 12. How do you amend your taxes Allowances and reimbursements. How do you amend your taxes    If you receive travel, transportation, or other business expense allowances or reimbursements from your employer, see Publication 463. How do you amend your taxes If you are reimbursed for moving expenses, see Publication 521, Moving Expenses. How do you amend your taxes Back pay awards. How do you amend your taxes    Include in income amounts you are awarded in a settlement or judgment for back pay. How do you amend your taxes These include payments made to you for damages, unpaid life insurance premiums, and unpaid health insurance premiums. How do you amend your taxes They should be reported to you by your employer on Form W-2. How do you amend your taxes Bonuses and awards. How do you amend your taxes   Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. How do you amend your taxes These include prizes such as vacation trips for meeting sales goals. How do you amend your taxes If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. How do you amend your taxes However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you. How do you amend your taxes Employee achievement award. How do you amend your taxes   If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. How do you amend your taxes However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. How do you amend your taxes Your employer can tell you whether your award is a qualified plan award. How do you amend your taxes Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay. How do you amend your taxes   However, the exclusion does not apply to the following awards: A length-of-service award if you received it for less than 5 years of service or if you received another length-of-service award during the year or the previous 4 years. How do you amend your taxes A safety achievement award if you are a manager, administrator, clerical employee, or other professional employee or if more than 10% of eligible employees previously received safety achievement awards during the year. How do you amend your taxes Example. How do you amend your taxes Ben Green received three employee achievement awards during the year: a nonqualified plan award of a watch valued at $250, and two qualified plan awards of a stereo valued at $1,000 and a set of golf clubs valued at $500. How do you amend your taxes Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income. How do you amend your taxes However, because the $1,750 total value of the awards is more than $1,600, Ben must include $150 ($1,750 – $1,600) in his income. How do you amend your taxes Differential wage payments. How do you amend your taxes   This is any payment made to you by an employer for any period during which you are, for a period of more than 30 days, an active duty member of the uniformed services and represents all or a portion of the wages you would have received from the employer during that period. How do you amend your taxes These payments are treated as wages and are subject to income tax withholding, but not FICA or FUTA taxes. How do you amend your taxes The payments are reported as wages on Form W-2. How do you amend your taxes Government cost-of-living allowances. How do you amend your taxes   Most payments received by U. How do you amend your taxes S. How do you amend your taxes Government civilian employees for working abroad are taxable. How do you amend your taxes However, certain cost-of-living allowances are tax free. How do you amend your taxes Publication 516, U. How do you amend your taxes S. How do you amend your taxes Government Civilian Employees Stationed Abroad, explains the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. How do you amend your taxes Nonqualified deferred compensation plans. How do you amend your taxes   Your employer will report to you the total amount of deferrals for the year under a nonqualified deferred compensation plan. How do you amend your taxes This amount is shown on Form W-2, box 12, using code Y. How do you amend your taxes This amount is not included in your income. How do you amend your taxes   However, if at any time during the tax year, the plan fails to meet certain requirements, or is not operated under those requirements, all amounts deferred under the plan for the tax year and all preceding tax years are included in your income for the current year. How do you amend your taxes This amount is included in your wages shown on Form W-2, box 1. How do you amend your taxes It is also shown on Form W-2, box 12, using code Z. How do you amend your taxes Note received for services. How do you amend your taxes    If your employer gives you a secured note as payment for your services, you must include the fair market value (usually the discount value) of the note in your income for the year you receive it. How do you amend your taxes When you later receive payments on the note, a proportionate part of each payment is the recovery of the fair market value that you previously included in your income. How do you amend your taxes Do not include that part again in your income. How do you amend your taxes Include the rest of the payment in your income in the year of payment. How do you amend your taxes   If your employer gives you a nonnegotiable unsecured note as payment for your services, payments on the note that are credited toward the principal amount of the note are compensation income when you receive them. How do you amend your taxes Severance pay. How do you amend your taxes   You must include in income amounts you receive as severance pay and any payment for the cancellation of your employment contract. How do you amend your taxes Accrued leave payment. How do you amend your taxes    If you are a federal employee and receive a lump-sum payment for accrued annual leave when you retire or resign, this amount will be included as wages on your Form W-2. How do you amend your taxes   If you resign from one agency and are reemployed by another agency, you may have to repay part of your lump-sum annual leave payment to the second agency. How do you amend your taxes You can reduce gross wages by the amount you repaid in the same tax year in which you received it. How do you amend your taxes Attach to your tax return a copy of the receipt or statement given to you by the agency you repaid to explain the difference between the wages on the return and the wages on your Forms W-2. How do you amend your taxes Outplacement services. How do you amend your taxes   If you choose to accept a reduced amount of severance pay so that you can receive outplacement services (such as training in résumé writing and interview techniques), you must include the unreduced amount of the severance pay in income. How do you amend your taxes    However, you can deduct the value of these outplacement services (up to the difference between the severance pay included in income and the amount actually received) as a miscellaneous deduction (subject to the 2%-of-adjusted-gross-income (AGI) limit) on Schedule A (Form 1040). How do you amend your taxes Sick pay. How do you amend your taxes   Pay you receive from your employer while you are sick or injured is part of your salary or wages. How do you amend your taxes In addition, you must include in your income sick pay benefits received from any of the following payers: A welfare fund. How do you amend your taxes A state sickness or disability fund. How do you amend your taxes An association of employers or employees. How do you amend your taxes An insurance company, if your employer paid for the plan. How do you amend your taxes However, if you paid the premiums on an accident or health insurance policy, the benefits you receive under the policy are not taxable. How do you amend your taxes For more information, see Publication 525. How do you amend your taxes Social security and Medicare taxes paid by employer. How do you amend your taxes   If you and your employer have an agreement that your employer pays your social security and Medicare taxes without deducting them from your gross wages, you must report the amount of tax paid for you as taxable wages on your tax return. How do you amend your taxes The payment also is treated as wages for figuring your social security and Medicare taxes and your social security and Medicare benefits. How do you amend your taxes However, these payments are not treated as social security and Medicare wages if you are a household worker or a farm worker. How do you amend your taxes Stock appreciation rights. How do you amend your taxes   Do not include a stock appreciation right granted by your employer in income until you exercise (use) the right. How do you amend your taxes When you use the right, you are entitled to a cash payment equal to the fair market value of the corporation's stock on the date of use minus the fair market value on the date the right was granted. How do you amend your taxes You include the cash payment in your income in the year you use the right. How do you amend your taxes Fringe Benefits Fringe benefits received in connection with the performance of your services are included in your income as compensation unless you pay fair market value for them or they are specifically excluded by law. How do you amend your taxes Abstaining from the performance of services (for example, under a covenant not to compete) is treated as the performance of services for purposes of these rules. How do you amend your taxes Accounting period. How do you amend your taxes   You must use the same accounting period your employer uses to report your taxable noncash fringe benefits. How do you amend your taxes Your employer has the option to report taxable noncash fringe benefits by using either of the following rules. How do you amend your taxes The general rule: benefits are reported for a full calendar year (January 1–December 31). How do you amend your taxes The special accounting period rule: benefits provided during the last 2 months of the calendar year (or any shorter period) are treated as paid during the following calendar year. How do you amend your taxes For example, each year your employer reports the value of benefits provided during the last 2 months of the prior year and the first 10 months of the current year. How do you amend your taxes  Your employer does not have to use the same accounting period for each fringe benefit, but must use the same period for all employees who receive a particular benefit. How do you amend your taxes   You must use the same accounting period that you use to report the benefit to claim an employee business deduction (for use of a car, for example). How do you amend your taxes Form W-2. How do you amend your taxes   Your employer must include all taxable fringe benefits in box 1 of Form W-2 as wages, tips, and other compensation and, if applicable, in boxes 3 and 5 as social security and Medicare wages. How do you amend your taxes Although not required, your employer may include the total value of fringe benefits in box 14 (or on a separate statement). How do you amend your taxes However, if your employer provided you with a vehicle and included 100% of its annual lease value in your income, the employer must separately report this value to you in box 14 (or on a separate statement). How do you amend your taxes Accident or Health Plan In most cases, the value of accident or health plan coverage provided to you by your employer is not included in your income. How do you amend your taxes Benefits you receive from the plan may be taxable, as explained later under Sickness and Injury Benefits . How do you amend your taxes For information on the items covered in this section, other than Long-term care coverage, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. How do you amend your taxes Long-term care coverage. How do you amend your taxes    Contributions by your employer to provide coverage for long-term care services generally are not included in your income. How do you amend your taxes However, contributions made through a flexible spending or similar arrangement (such as a cafeteria plan) must be included in your income. How do you amend your taxes This amount will be reported as wages in box 1 of your Form W-2. How do you amend your taxes   Contributions you make to the plan are discussed in Publication 502, Medical and Dental Expenses. How do you amend your taxes Archer MSA contributions. How do you amend your taxes    Contributions by your employer to your Archer MSA generally are not included in your income. How do you amend your taxes Their total will be reported in box 12 of Form W-2 with code R. How do you amend your taxes You must report this amount on Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. How do you amend your taxes File the form with your return. How do you amend your taxes Health flexible spending arrangement (health FSA). How do you amend your taxes   If your employer provides a health FSA that qualifies as an accident or health plan, the amount of your salary reduction, and reimbursements of your medical care expenses, in most cases, are not included in your income. How do you amend your taxes Note. How do you amend your taxes Health FSAs are subject to a $2,500 limit on salary reduction contributions for plan years beginning after 2012. How do you amend your taxes The $2,500 limit is subject to an inflation adjustment for plan years beginning after 2013. How do you amend your taxes For more information, see Notice 2012-40, 2012-26 I. How do you amend your taxes R. How do you amend your taxes B. How do you amend your taxes 1046, available at www. How do you amend your taxes irs. How do you amend your taxes gov/irb/2012-26 IRB/ar09. How do you amend your taxes html. How do you amend your taxes Health reimbursement arrangement (HRA). How do you amend your taxes   If your employer provides an HRA that qualifies as an accident or health plan, coverage and reimbursements of your medical care expenses generally are not included in your income. How do you amend your taxes Health savings accounts (HSA). How do you amend your taxes   If you are an eligible individual, you and any other person, including your employer or a family member, can make contributions to your HSA. How do you amend your taxes Contributions, other than employer contributions, are deductible on your return whether or not you itemize deductions. How do you amend your taxes Contributions made by your employer are not included in your income. How do you amend your taxes Distributions from your HSA that are used to pay qualified medical expenses are not included in your income. How do you amend your taxes Distributions not used for qualified medical expenses are included in your income. How do you amend your taxes See Publication 969 for the requirements of an HSA. How do you amend your taxes   Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. How do you amend your taxes The contributions are treated as a distribution of money and are not included in the partner's gross income. How do you amend your taxes Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are includible in the partner's gross income. How do you amend your taxes In both situations, the partner can deduct the contribution made to the partner's HSA. How do you amend your taxes   Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are includible in the shareholder-employee's gross income. How do you amend your taxes The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. How do you amend your taxes Qualified HSA funding distribution. How do you amend your taxes   You can make a one-time distribution from your individual retirement account (IRA) to an HSA and you generally will not include any of the distribution in your income. How do you amend your taxes See Publication 590 for the requirements for these qualified HSA funding distributions. How do you amend your taxes Failure to maintain eligibility. How do you amend your taxes   If your HSA received qualified HSA distributions from a health FSA or HRA (discussed earlier) or a qualified HSA funding distribution, you must be an eligible individual for HSA purposes for the period beginning with the month in which the qualified distribution was made and ending on the last day of the 12th month following that month. How do you amend your taxes If you fail to be an eligible individual during this period, other than because of death or disability, you must include the distribution in your income for the tax year in which you become ineligible. How do you amend your taxes This income is also subject to an additional 10% tax. How do you amend your taxes Adoption Assistance You may be able to exclude from your income amounts paid or expenses incurred by your employer for qualified adoption expenses in connection with your adoption of an eligible child. How do you amend your taxes See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. How do you amend your taxes Adoption benefits are reported by your employer in box 12 of Form W-2 with code T. How do you amend your taxes They also are included as social security and Medicare wages in boxes 3 and 5. How do you amend your taxes However, they are not included as wages in box 1. How do you amend your taxes To determine the taxable and nontaxable amounts, you must complete Part III of Form 8839. How do you amend your taxes File the form with your return. How do you amend your taxes De Minimis (Minimal) Benefits If your employer provides you with a product or service and the cost of it is so small that it would be unreasonable for the employer to account for it, the value is not included in your income. How do you amend your taxes In most cases, the value of benefits such as discounts at company cafeterias, cab fares home when working overtime, and company picnics are not included in your income. How do you amend your taxes Holiday gifts. How do you amend your taxes   If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, do not include the value of the gift in your income. How do you amend your taxes However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved. How do you amend your taxes Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. How do you amend your taxes For more information, see Publication 970, Tax Benefits for Education. How do you amend your taxes Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) is not included in your income. How do you amend your taxes However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. How do you amend your taxes For exceptions, see Entire cost excluded , and Entire cost taxed , later. How do you amend your taxes If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of your Form W-2. How do you amend your taxes Also, it is shown separately in box 12 with code C. How do you amend your taxes Group-term life insurance. How do you amend your taxes   This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. How do you amend your taxes Permanent benefits. How do you amend your taxes   If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. How do you amend your taxes Your employer should be able to tell you the amount to include in your income. How do you amend your taxes Accidental death benefits. How do you amend your taxes   Insurance that provides accidental or other death benefits but does not provide general death benefits (travel insurance, for example) is not group-term life insurance. How do you amend your taxes Former employer. How do you amend your taxes   If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. How do you amend your taxes Also, it is shown separately in box 12 with code C. How do you amend your taxes Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. How do you amend your taxes You must pay these taxes with your income tax return. How do you amend your taxes Include them on line 60, Form 1040, and follow the instructions for line 60. How do you amend your taxes For more information, see the Instructions for Form 1040. How do you amend your taxes Two or more employers. How do you amend your taxes   Your exclusion for employer-provided group-term life insurance coverage cannot exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. How do you amend your taxes If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 will not be correct. How do you amend your taxes You must figure how much to include in your income. How do you amend your taxes Reduce the amount you figure by any amount reported with code C in box 12 of your Forms W-2, add the result to the wages reported in box 1, and report the total on your return. How do you amend your taxes Figuring the taxable cost. How do you amend your taxes   Use the following worksheet to figure the amount to include in your income. How do you amend your taxes     Worksheet 5-1. How do you amend your taxes Figuring the Cost of Group-Term Life Insurance To Include in Income 1. How do you amend your taxes Enter the total amount of your insurance coverage from your employer(s) 1. How do you amend your taxes   2. How do you amend your taxes Limit on exclusion for employer-provided group-term life insurance coverage 2. How do you amend your taxes 50,000 3. How do you amend your taxes Subtract line 2 from line 1 3. How do you amend your taxes   4. How do you amend your taxes Divide line 3 by $1,000. How do you amend your taxes Figure to the nearest tenth 4. How do you amend your taxes   5. How do you amend your taxes Go to Table 5-1. How do you amend your taxes Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. How do you amend your taxes   6. How do you amend your taxes Multiply line 4 by line 5 6. How do you amend your taxes   7. How do you amend your taxes Enter the number of full months of coverage at this cost. How do you amend your taxes 7. How do you amend your taxes   8. How do you amend your taxes Multiply line 6 by line 7 8. How do you amend your taxes   9. How do you amend your taxes Enter the premiums you paid per month 9. How do you amend your taxes       10. How do you amend your taxes Enter the number of months you paid the premiums 10. How do you amend your taxes       11. How do you amend your taxes Multiply line 9 by line 10. How do you amend your taxes 11. How do you amend your taxes   12. How do you amend your taxes Subtract line 11 from line 8. How do you amend your taxes Include this amount in your income as wages 12. How do you amend your taxes      Table 5-1. How do you amend your taxes Cost of $1,000 of Group-Term Life Insurance for One Month Age Cost Under 25 $. How do you amend your taxes 05 25 through 29 . How do you amend your taxes 06 30 through 34 . How do you amend your taxes 08 35 through 39 . How do you amend your taxes 09 40 through 44 . How do you amend your taxes 10 45 through 49 . How do you amend your taxes 15 50 through 54 . How do you amend your taxes 23 55 through 59 . How do you amend your taxes 43 60 through 64 . How do you amend your taxes 66 65 through 69 1. How do you amend your taxes 27 70 and older 2. How do you amend your taxes 06 Example. How do you amend your taxes You are 51 years old and work for employers A and B. How do you amend your taxes Both employers provide group-term life insurance coverage for you for the entire year. How do you amend your taxes Your coverage is $35,000 with employer A and $45,000 with employer B. How do you amend your taxes You pay premiums of $4. How do you amend your taxes 15 a month under the employer B group plan. How do you amend your taxes You figure the amount to include in your income as shown in Worksheet 5-1. How do you amend your taxes Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated, later. How do you amend your taxes Worksheet 5-1. How do you amend your taxes Figuring the Cost of Group-Term Life Insurance to Include in Income—Illustrated 1. How do you amend your taxes Enter the total amount of your insurance coverage from your employer(s) 1. How do you amend your taxes 80,000 2. How do you amend your taxes Limit on exclusion for employer-provided group-term life insurance coverage 2. How do you amend your taxes 50,000 3. How do you amend your taxes Subtract line 2 from line 1 3. How do you amend your taxes 30,000 4. How do you amend your taxes Divide line 3 by $1,000. How do you amend your taxes Figure to the nearest tenth 4. How do you amend your taxes 30. How do you amend your taxes 0 5. How do you amend your taxes Go to Table 5-1. How do you amend your taxes Using your age on the last day of the tax year, find your age group in the left column, and enter the cost from the column on the right for your age group 5. How do you amend your taxes . How do you amend your taxes 23 6. How do you amend your taxes Multiply line 4 by line 5 6. How do you amend your taxes 6. How do you amend your taxes 90 7. How do you amend your taxes Enter the number of full months of coverage at this cost. How do you amend your taxes 7. How do you amend your taxes 12 8. How do you amend your taxes Multiply line 6 by line 7 8. How do you amend your taxes 82. How do you amend your taxes 80 9. How do you amend your taxes Enter the premiums you paid per month 9. How do you amend your taxes 4. How do you amend your taxes 15     10. How do you amend your taxes Enter the number of months you paid the premiums 10. How do you amend your taxes 12     11. How do you amend your taxes Multiply line 9 by line 10. How do you amend your taxes 11. How do you amend your taxes 49. How do you amend your taxes 80 12. How do you amend your taxes Subtract line 11 from line 8. How do you amend your taxes Include this amount in your income as wages 12. How do you amend your taxes 33. How do you amend your taxes 00 Entire cost excluded. How do you amend your taxes   You are not taxed on the cost of group-term life insurance if any of the following circumstances apply. How do you amend your taxes You are permanently and totally disabled and have ended your employment. How do you amend your taxes Your employer is the beneficiary of the policy for the entire period the insurance is in force during the tax year. How do you amend your taxes A charitable organization (defined in chapter 24) to which contributions are deductible is the only beneficiary of the policy for the entire period the insurance is in force during the tax year. How do you amend your taxes (You are not entitled to a deduction for a charitable contribution for naming a charitable organization as the beneficiary of your policy. How do you amend your taxes ) The plan existed on January 1, 1984, and You retired before January 2, 1984, and were covered by the plan when you retired, or You reached age 55 before January 2, 1984, and were employed by the employer or its predecessor in 1983. How do you amend your taxes Entire cost taxed. How do you amend your taxes   You are taxed on the entire cost of group-term life insurance if either of the following circumstances apply: The insurance is provided by your employer through a qualified employees' trust, such as a pension trust or a qualified annuity plan. How do you amend your taxes You are a key employee and your employer's plan discriminates in favor of key employees. How do you amend your taxes Retirement Planning Services If your employer has a qualified retirement plan, qualified retirement planning services provided to you (and your spouse) by your employer are not included in your income. How do you amend your taxes Qualified services include retirement planning advice, information about your employer's retirement plan, and information about how the plan may fit into your overall individual retirement income plan. How do you amend your taxes You cannot exclude the value of any tax preparation, accounting, legal, or brokerage services provided by your employer. How do you amend your taxes Transportation If your employer provides you with a qualified transportation fringe benefit, it can be excluded from your income, up to certain limits. How do you amend your taxes A qualified transportation fringe benefit is: Transportation in a commuter highway vehicle (such as a van) between your home and work place, A transit pass, Qualified parking, or Qualified bicycle commuting reimbursement. How do you amend your taxes Cash reimbursement by your employer for these expenses under a bona fide reimbursement arrangement is also excludable. How do you amend your taxes However, cash reimbursement for a transit pass is excludable only if a voucher or similar item that can be exchanged only for a transit pass is not readily available for direct distribution to you. How do you amend your taxes Exclusion limit. How do you amend your taxes   The exclusion for commuter vehicle transportation and transit pass fringe benefits cannot be more than $245 a month. How do you amend your taxes   The exclusion for the qualified parking fringe benefit cannot be more than $245 a month. How do you amend your taxes   The exclusion for qualified bicycle commuting in a calendar year is $20 multiplied by the number of qualified bicycle commuting months that year. How do you amend your taxes   If the benefits have a value that is more than these limits, the excess must be included in your income. How do you amend your taxes You are not entitled to these exclusions if the reimbursements are made under a compensation reduction agreement. How do you amend your taxes Commuter highway vehicle. How do you amend your taxes   This is a highway vehicle that seats at least six adults (not including the driver). How do you amend your taxes At least 80% of the vehicle's mileage must reasonably be expected to be: For transporting employees between their homes and work place, and On trips during which employees occupy at least half of the vehicle's adult seating capacity (not including the driver). How do you amend your taxes Transit pass. How do you amend your taxes   This is any pass, token, farecard, voucher, or similar item entitling a person to ride mass transit (whether public or private) free or at a reduced rate or to ride in a commuter highway vehicle operated by a person in the business of transporting persons for compensation. How do you amend your taxes Qualified parking. How do you amend your taxes   This is parking provided to an employee at or near the employer's place of business. How do you amend your taxes It also includes parking provided on or near a location from which the employee commutes to work by mass transit, in a commuter highway vehicle, or by carpool. How do you amend your taxes It does not include parking at or near the employee's home. How do you amend your taxes Qualified bicycle commuting. How do you amend your taxes   This is reimbursement based on the number of qualified bicycle commuting months for the year. How do you amend your taxes A qualified bicycle commuting month is any month you use the bicycle regularly for a substantial portion of the travel between your home and place of employment and you do not receive any of the other qualified transportation fringe benefits. How do you amend your taxes The reimbursement can be for expenses you incurred during the year for the purchase of a bicycle and bicycle improvements, repair, and storage. How do you amend your taxes Retirement Plan Contributions Your employer's contributions to a qualified retirement plan for you are not included in income at the time contributed. How do you amend your taxes (Your employer can tell you whether your retirement plan is qualified. How do you amend your taxes ) However, the cost of life insurance coverage included in the plan may have to be included. How do you amend your taxes See Group-Term Life Insurance , earlier, under Fringe Benefits. How do you amend your taxes If your employer pays into a nonqualified plan for you, you generally must include the contributions in your income as wages for the tax year in which the contributions are made. How do you amend your taxes However, if your interest in the plan is not transferable or is subject to a substantial risk of forfeiture (you have a good chance of losing it) at the time of the contribution, you do not have to include the value of your interest in your income until it is transferable or is no longer subject to a substantial risk of forfeiture. How do you amend your taxes For information on distributions from retirement plans, see Publication 575, Pension and Annuity Income (or Publication 721, Tax Guide to U. How do you amend your taxes S. How do you amend your taxes Civil Service Retirement Benefits, if you are a federal employee or retiree). How do you amend your taxes Elective deferrals. How do you amend your taxes   If you are covered by certain kinds of retirement plans, you can choose to have part of your compensation contributed by your employer to a retirement fund, rather than have it paid to you. How do you amend your taxes The amount you set aside (called an elective deferral) is treated as an employer contribution to a qualified plan. How do you amend your taxes An elective deferral, other than a designated Roth contribution (discussed later), is not included in wages subject to income tax at the time contributed. How do you amend your taxes However, it is included in wages subject to social security and Medicare taxes. How do you amend your taxes   Elective deferrals include elective contributions to the following retirement plans. How do you amend your taxes Cash or deferred arrangements (section 401(k) plans). How do you amend your taxes The Thrift Savings Plan for federal employees. How do you amend your taxes Salary reduction simplified employee pension plans (SARSEP). How do you amend your taxes Savings incentive match plans for employees (SIMPLE plans). How do you amend your taxes Tax-sheltered annuity plans (403(b) plans). How do you amend your taxes Section 501(c)(18)(D) plans. How do you amend your taxes Section 457 plans. How do you amend your taxes Qualified automatic contribution arrangements. How do you amend your taxes   Under a qualified automatic contribution arrangement, your employer can treat you as having elected to have a part of your compensation contributed to a section 401(k) plan. How do you amend your taxes You are to receive written notice of your rights and obligations under the qualified automatic contribution arrangement. How do you amend your taxes The notice must explain: Your rights to elect not to have elective contributions made, or to have contributions made at a different percentage, and How contributions made will be invested in the absence of any investment decision by you. How do you amend your taxes   You must be given a reasonable period of time after receipt of the notice and before the first elective contribution is made to make an election with respect to the contributions. How do you amend your taxes Overall limit on deferrals. How do you amend your taxes   For 2013, in most cases, you should not have deferred more than a total of $17,500 of contributions to the plans listed in (1) through (3) and (5) above. How do you amend your taxes The limit for SIMPLE plans is $12,000. How do you amend your taxes The limit for section 501(c)(18)(D) plans is the lesser of $7,000 or 25% of your compensation. How do you amend your taxes The limit for section 457 plans is the lesser of your includible compensation or $17,500. How do you amend your taxes Amounts deferred under specific plan limits are part of the overall limit on deferrals. How do you amend your taxes Designated Roth contributions. How do you amend your taxes   Employers with section 401(k) and section 403(b) plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals to the plan designated as after-tax Roth contributions. How do you amend your taxes Designated Roth contributions are treated as elective deferrals, except that they are included in income. How do you amend your taxes Excess deferrals. How do you amend your taxes   Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions. How do you amend your taxes However, you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. How do you amend your taxes   If you set aside more than the limit, the excess generally must be included in your income for that year, unless you have an excess deferral of a designated Roth contribution. How do you amend your taxes See Publication 525 for a discussion of the tax treatment of excess deferrals. How do you amend your taxes Catch-up contributions. How do you amend your taxes   You may be allowed catch-up contributions (additional elective deferral) if you are age 50 or older by the end of your tax year. How do you amend your taxes Stock Options If you receive a nonstatutory option to buy or sell stock or other property as payment for your services, you usually will have income when you receive the option, when you exercise the option (use it to buy or sell the stock or other property), or when you sell or otherwise dispose of the option. How do you amend your taxes However, if your option is a statutory stock option, you will not have any income until you sell or exchange your stock. How do you amend your taxes Your employer can tell you which kind of option you hold. How do you amend your taxes For more information, see Publication 525. How do you amend your taxes Restricted Property In most cases, if you receive property for your services, you must include its fair market value in your income in the year you receive the property. How do you amend your taxes However, if you receive stock or other property that has certain restrictions that affect its value, you do not include the value of the property in your income until it has substantially vested. How do you amend your taxes (You can choose to include the value of the property in your income in the year it is transferred to you. How do you amend your taxes ) For more information, see Restricted Property in Publication 525. How do you amend your taxes Dividends received on restricted stock. How do you amend your taxes   Dividends you receive on restricted stock are treated as compensation and not as dividend income. How do you amend your taxes Your employer should include these payments on your Form W-2. How do you amend your taxes Stock you chose to include in income. How do you amend your taxes   Dividends you receive on restricted stock you chose to include in your income in the year transferred are treated the same as any other dividends. How do you amend your taxes Report them on your return as dividends. How do you amend your taxes For a discussion of dividends, see chapter 8. How do you amend your taxes    For information on how to treat dividends reported on both your Form W-2 and Form 1099-DIV, see Dividends received on restricted stock in Publication 525. How do you amend your taxes Special Rules for Certain Employees This section deals with special rules for people in certain types of employment: members of the clergy, members of religious orders, people working for foreign employers, military personnel, and volunteers. How do you amend your taxes Clergy Generally, if you are a member of the clergy, you must include in your income offerings and fees you receive for marriages, baptisms, funerals, masses, etc. How do you amend your taxes , in addition to your salary. How do you amend your taxes If the offering is made to the religious institution, it is not taxable to you. How do you amend your taxes If you are a member of a religious organization and you give your outside earnings to the religious organization, you still must include the earnings in your income. How do you amend your taxes However, you may be entitled to a charitable contribution deduction for the amount paid to the organization. How do you amend your taxes See chapter 24. How do you amend your taxes Pension. How do you amend your taxes    A pension or retirement pay for a member of the clergy usually is treated as any other pension or annuity. How do you amend your taxes It must be reported on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. How do you amend your taxes Housing. How do you amend your taxes    Special rules for housing apply to members of the clergy. How do you amend your taxes Under these rules, you do not include in your income the rental value of a home (including utilities) or a designated housing allowance provided to you as part of your pay. How do you amend your taxes However, the exclusion cannot be more than the reasonable pay for your service. How do you amend your taxes If you pay for the utilities, you can exclude any allowance designated for utility cost, up to your actual cost. How do you amend your taxes The home or allowance must be provided as compensation for your services as an ordained, licensed, or commissioned minister. How do you amend your taxes However, you must include the rental value of the home or the housing allowance as earnings from self-employment on Schedule SE (Form 1040) if you are subject to the self-employment tax. How do you amend your taxes For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. How do you amend your taxes Members of Religious Orders If you are a member of a religious order who has taken a vow of poverty, how you treat earnings that you renounce and turn over to the order depends on whether your services are performed for the order. How do you amend your taxes Services performed for the order. How do you amend your taxes   If you are performing the services as an agent of the order in the exercise of duties required by the order, do not include in your income the amounts turned over to the order. How do you amend your taxes   If your order directs you to perform services for another agency of the supervising church or an associated institution, you are considered to be performing the services as an agent of the order. How do you amend your taxes Any wages you earn as an agent of an order that you turn over to the order are not included in your income. How do you amend your taxes Example. How do you amend your taxes You are a member of a church order and have taken a vow of poverty. How do you amend your taxes You renounce any claims to your earnings and turn over to the order any salaries or wages you earn. How do you amend your taxes You are a registered nurse, so your order assigns you to work in a hospital that is an associated institution of the church. How do you amend your taxes However, you remain under the general direction and control of the order. How do you amend your taxes You are considered to be an agent of the order and any wages you earn at the hospital that you turn over to your order are not included in your income. How do you amend your taxes Services performed outside the order. How do you amend your taxes   If you are directed to work outside the order, your services are not an exercise of duties required by the order unless they meet both of the following requirements: They are the kind of services that are ordinarily the duties of members of the order. How do you amend your taxes They are part of the duties that you must exercise for, or on behalf of, the religious order as its agent. How do you amend your taxes If you are an employee of a third party, the services you perform for the third party will not be considered directed or required of you by the order. How do you amend your taxes Amounts you receive for these services are included in your income, even if you have taken a vow of poverty. How do you amend your taxes Example. How do you amend your taxes Mark Brown is a member of a religious order and has taken a vow of poverty. How do you amend your taxes He renounces all claims to his earnings and turns over his earnings to the order. How do you amend your taxes Mark is a schoolteacher. How do you amend your taxes He was instructed by the superiors of the order to get a job with a private tax-exempt school. How do you amend your taxes Mark became an employee of the school, and, at his request, the school made the salary payments directly to the order. How do you amend your taxes Because Mark is an employee of the school, he is performing services for the school rather than as an agent of the order. How do you amend your taxes The wages Mark earns working for the school are included in his income. How do you amend your taxes Foreign Employer Special rules apply if you work for a foreign employer. How do you amend your taxes U. How do you amend your taxes S. How do you amend your taxes citizen. How do you amend your taxes   If you are a U. How do you amend your taxes S. How do you amend your taxes citizen who works in the United States for a foreign government, an international organization, a foreign embassy, or any foreign employer, you must include your salary in your income. How do you amend your taxes Social security and Medicare taxes. How do you amend your taxes   You are exempt from social security and Medicare employee taxes if you are employed in the United States by an international organization or a foreign government. How do you amend your taxes However, you must pay self-employment tax on your earnings from services performed in the United States, even though you are not self-employed. How do you amend your taxes This rule also applies if you are an employee of a qualifying wholly owned instrumentality of a foreign government. How do you amend your taxes Employees of international organizations or foreign governments. How do you amend your taxes   Your compensation for official services to an international organization is exempt from federal income tax if you are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). How do you amend your taxes   Your compensation for official services to a foreign government is exempt from federal income tax if all of the following are true. How do you amend your taxes You are not a citizen of the United States or you are a citizen of the Philippines (whether or not you are a citizen of the United States). How do you amend your taxes Your work is like the work done by employees of the United States in foreign countries. How do you amend your taxes The foreign government gives an equal exemption to employees of the United States in its country. How do you amend your taxes Waiver of alien status. How do you amend your taxes   If you are an alien who works for a foreign government or international organization and you file a waiver under section 247(b) of the Immigration and Nationality Act to keep your immigrant status, different rules may apply. How do you amend your taxes See Foreign Employer in Publication 525. How do you amend your taxes Employment abroad. How do you amend your taxes   For information on the tax treatment of income earned abroad, see Publication 54. How do you amend your taxes Military Payments you receive as a member of a military service generally are taxed as wages except for retirement pay, which is taxed as a pension. How do you amend your taxes Allowances generally are not taxed. How do you amend your taxes For more information on the tax treatment of military allowances and benefits, see Publication 3, Armed Forces' Tax Guide. How do you amend your taxes Differential wage payments. How do you amend your taxes   Any payments made to you by an employer during the time you are performing service in the uniformed services are treated as compensation. How do you amend your taxes These wages are subject to income tax withholding and are reported on a Form W-2. How do you amend your taxes See the discussion under Miscellaneous Compensation , earlier. How do you amend your taxes Military retirement pay. How do you amend your taxes   If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. How do you amend your taxes Do not include in your income the amount of any reduction in retirement or retainer pay to provide a survivor annuity for your spouse or children under the Retired Serviceman's Family Protection Plan or the Survivor Benefit Plan. How do you amend your taxes   For more detailed discussion of survivor annuities, see chapter 10. How do you amend your taxes Disability. How do you amend your taxes   If you are retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later. How do you amend your taxes Veterans' benefits. How do you amend your taxes   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). How do you amend your taxes The following amounts paid to veterans or their families are not taxable. How do you amend your taxes Education, training, and subsistence allowances. How do you amend your taxes Disability compensation and pension payments for disabilities paid either to veterans or their families. How do you amend your taxes Grants for homes designed for wheelchair living. How do you amend your taxes Grants for motor vehicles for veterans who lost their sight or the use of their limbs. How do you amend your taxes Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death. How do you amend your taxes Interest on insurance dividends you leave on deposit with the VA. How do you amend your taxes Benefits under a dependent-care assistance program. How do you amend your taxes The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001. How do you amend your taxes Payments made under the compensated work therapy program. How do you amend your taxes Any bonus payment by a state or political subdivision because of service in a combat zone. How do you amend your taxes Volunteers The tax treatment of amounts you receive as a volunteer worker for the Peace Corps or similar agency is covered in the following discussions. How do you amend your taxes Peace Corps. How do you amend your taxes   Living allowances you receive as a Peace Corps volunteer or volunteer leader for housing, utilities, household supplies, food, and clothing are exempt from tax. How do you amend your taxes Taxable allowances. How do you amend your taxes   The following allowances must be included in your income and reported as wages: Allowances paid to your spouse and minor children while you are a volunteer leader training in the United States. How do you amend your taxes Living allowances designated by the Director of the Peace Corps as basic compensation. How do you amend your taxes These are allowances for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. How do you amend your taxes Leave allowances. How do you amend your taxes Readjustment allowances or termination payments. How do you amend your taxes These are considered received by you when credited to your account. How do you amend your taxes Example. How do you amend your taxes Gary Carpenter, a Peace Corps volunteer, gets $175 a month as a readjustment allowance during his period of service, to be paid to him in a lump sum at the end of his tour of duty. How do you amend your taxes Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. How do you amend your taxes Volunteers in Service to America (VISTA). How do you amend your taxes   If you are a VISTA volunteer, you must include meal and lodging allowances paid to you in your income as wages. How do you amend your taxes National Senior Services Corps programs. How do you amend your taxes   Do not include in your income amounts you receive for supportive services or reimbursements for out-of-pocket expenses from the following programs. How do you amend your taxes Retired Senior Volunteer Program (RSVP). How do you amend your taxes Foster Grandparent Program. How do you amend your taxes Senior Companion Program. How do you amend your taxes Service Corps of Retired Executives (SCORE). How do you amend your taxes   If you receive amounts for supportive services or reimbursements for out-of-pocket expenses from SCORE, do not include these amounts in income. How do you amend your taxes Volunteer tax counseling. How do you amend your taxes   Do not include in your income any reimbursements you receive for transportation, meals, and other expenses you have in training for, or actually providing, volunteer federal income tax counseling for the elderly (TCE). How do you amend your taxes   You can deduct as a charitable contribution your unreimbursed out-of-pocket expenses in taking part in the volunteer income tax assistance (VITA) program. How do you amend your taxes See chapter 24. How do you amend your taxes Sickness and Injury Benefits This section discusses sickness and injury benefits including disability pensions, long-term care insurance contracts, workers' compensation, and other benefits. How do you amend your taxes In most cases, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. How do you amend your taxes If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. How do you amend your taxes However, certain payments may not be taxable to you. How do you amend your taxes Your employer should be able to give you specific details about your pension plan and tell you the amount you paid for your disability pension. How do you amend your taxes In addition to disability pensions and annuities, you may be receiving other payments for sickness and injury. How do you amend your taxes Do not report as income any amounts paid to reimburse you for medical expenses you incurred after the plan was established. How do you amend your taxes Cost paid by you. How do you amend your taxes   If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive from the plan for personal injury or sickness as income on your tax return. How do you amend your taxes If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. How do you amend your taxes See Reimbursement in a later year in chapter 21. How do you amend your taxes Cafeteria plans. How do you amend your taxes   In most cases, if you are covered by an accident or health insurance plan through a cafeteria plan, and the amount of the insurance premiums was not included in your income, you are not considered to have paid the premiums and you must include any benefits you receive in your income. How do you amend your taxes If the amount of the premiums was included in your income, you are considered to have paid the premiums, and any benefits you receive are not taxable. How do you amend your taxes Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. How do you amend your taxes You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A, until you reach minimum retirement age. How do you amend your taxes Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. How do you amend your taxes You may be entitled to a tax credit if you were permanently and totally disabled when you retired. How do you amend your taxes For information on this credit and the definition of permanent and total disability, see chapter 33. How do you amend your taxes Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. How do you amend your taxes Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. How do you amend your taxes The rules for reporting pensions are explained in How To Report in chapter 10. How do you amend your taxes For information on disability payments from a governmental program provided as a substitute for unemployment compensation, see chapter 12. How do you amend your taxes Retirement and profit-sharing plans. How do you amend your taxes   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. How do you amend your taxes The payments must be reported as a pension or annuity. How do you amend your taxes For more information on pensions, see chapter 10. How do you amend your taxes Accrued leave payment. How do you amend your taxes   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. How do you amend your taxes The payment is not a disability payment. How do you amend your taxes Include it in your income in the tax year you receive it. How do you amend your taxes Military and Government Disability Pensions Certain military and government disability pensions are not taxable. How do you amend your taxes Service-connected disability. How do you amend your taxes   You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services. How do you amend your taxes The armed forces of any country. How do you amend your taxes The National Oceanic and Atmospheric Administration. How do you amend your taxes The Public Health Service. How do you amend your taxes The Foreign Service. How do you amend your taxes Conditions for exclusion. How do you amend your taxes   Do not include the disability payments in your income if any of the following conditions apply. How do you amend your taxes You were entitled to receive a disability payment before September 25, 1975. How do you amend your taxes You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975. How do you amend your taxes You receive the disability payments for a combat-related injury. How do you amend your taxes This is a personal injury or sickness that Results directly from armed conflict, Takes place while you are engaged in extra-hazardous service, Takes place under conditions simulating war, including training exercises such as maneuvers, or Is caused by an instrumentality of war. How do you amend your taxes You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. How do you amend your taxes Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA. How do you amend your taxes Pension based on years of service. How do you amend your taxes   If you receive a disability pension based on years of service, in most cases you must include it in your income. How do you amend your taxes However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), do not include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. How do you amend your taxes You must include the rest of your pension in your income. How do you amend your taxes Retroactive VA determination. How do you amend your taxes   If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. How do you amend your taxes You can claim a refund of any tax paid on the excludable amount (subject to the statute of limitations) by filing an amended return on Form 1040X for each previous year during the retroactive period. How do you amend your taxes You must include with each Form 1040X a copy of the official VA Determination letter granting the retroactive benefit. How do you amend your taxes The letter must show the amount withheld and the effective date of the benefit. How do you amend your taxes   If you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income. How do you amend your taxes However, you must include in your income any lump-sum readjustment or other nondisability severance payment you received on release from active duty, even if you are later given a retroactive disability rating by the VA. How do you amend your taxes Special statute of limitations. How do you amend your taxes   In most cases, under the statute of limitations a claim for credit or refund must be filed within 3 years from the time a return was filed. How do you amend your taxes However, if you receive a retroactive service-connected disability rating determination, the statute of limitations is extended by a 1-year period beginning on the date of the determination. How do you amend your taxes This 1-year extended period applies to claims for credit or refund filed after June 17, 2008, and does not apply to any tax year that began more than 5 years before the date of the determination. How do you amend your taxes Example. How do you amend your taxes You retired in 2007 and receive a pension based on your years of service. How do you amend your taxes On August 1, 2013, you receive a determination of service-connected disability retroactive to 2007. How do you amend your taxes Generally, you could claim a refund for the taxes paid on your pension for 2010, 2011, and 2012. How do you amend your taxes However, under the special limitation period, you can also file a claim for 2009 as long as you file the claim by August 1, 2014. How do you amend your taxes You cannot file a claim for 2007 and 2008 because those tax years began more than 5 years before the determination. How do you amend your taxes Terrorist attack or military action. How do you amend your taxes   Do not include in your income disability payments you receive for injuries resulting directly from a terrorist or military action. How do you amend your taxes Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. How do you amend your taxes Amounts you receive from them (other than policyholder dividends or premium refunds) in most cases are excludable from income as amounts received for personal injury or sickness. How do you amend your taxes To claim an exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract, you must file Form 8853 with your return. How do you amend your taxes A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. How do you amend your taxes The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits, and In most cases, not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. How do you amend your taxes Qualified long-term care services. How do you amend your taxes   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance and personal care services, and Required by a chronically ill individual and provided pursuant to a plan of care as prescribed by a licensed health care practitioner. How do you amend your taxes Chronically ill individual. How do you amend your taxes   A chronically ill individual is one who has been certified by a licensed health care practitioner within the previous 12 months as one of the following: An individual who, for at least 90 days, is unable to perform at least two activities of daily living without substantial assistance due to loss of functional capacity. How do you amend your taxes Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. How do you amend your taxes An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. How do you amend your taxes Limit on exclusion. How do you amend your taxes   You generally can exclude from gross income up to $320 a day for 2013. How do you amend your taxes See Limit on exclusion, under Long-Term Care Insurance Contracts, under Sickness and Injury Benefits in Publication 525 for more information. How do you amend your taxes Workers' Compensation Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. How do you amend your taxes The exemption also applies to your survivors. How do you amend your taxes The exemption, however, does not apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. How do you amend your taxes If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. How do you amend your taxes For more information, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. How do you amend your taxes Return to work. How do you amend your taxes    If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages. How do you amend your taxes Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may receive other payments for sickness or injury. How do you amend your taxes Railroad sick pay. How do you amend your taxes    Payments you receive as sick pay under the Railroad Unemployment Insurance Act are taxable and you must include them in your income. How do you amend your taxes However, do not include them in your income if they are for an on-the-job injury. How do you amend your taxes   If you received income because of a disability, see Disability Pensions , earlier. How do you amend your taxes Federal Employees' Compensation Act (FECA). How do you amend your taxes   Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, are not taxable. How do you amend your taxes However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. How do you amend your taxes Report this income on line 7 of Form 1040 or Form 1040A or on line 1 of Form 1040-EZ. How do you amend your taxes Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages. How do you amend your taxes    If part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. How do you amend your taxes For a discussion of the taxability of these benefits, see Social security and equivalent railroad retirement benefits under Other Income, in Publication 525. How do you amend your taxes    You can deduct the amount you spend to buy back sick leave for an earlier year to be eligible for nontaxable FECA benefits for that period. How do you amend your taxes It is a miscellaneous deduction subject to the 2%-of-AGI limit on Schedule A (Form 1040). How do you amend your taxes If you buy back sick leave in the same year you used it, the amount reduces your taxable sick leave pay. How do you amend your taxes Do not deduct it separately. How do you amend your taxes Other compensation. How do you amend your taxes   Many other amounts you receive as compensation for sickness or injury are not taxable. How do you amend your taxes These include the following amounts. How do you amend your taxes Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments. How do you amend your taxes Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income. How do you amend your taxes Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy. How do you amend your taxes Compensation you receive for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. How do you amend your taxes This compensation must be based only on the injury and not on the period of your absence from work. How do you amend your taxes These benefits are not taxable even if your employer pays for the accident and health plan that provides these benefits. How do you amend your taxes Reimbursement for medical care. How do you amend your taxes    A reimbursement for medical care is generally not taxable. How do you amend your taxes However, it may reduce your medical expense deduction. How do you amend your taxes For more information, see chapter 21. How do you amend your taxes Prev  Up  Next   Home   More Online Publications
Español

The How Do You Amend Your Taxes

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