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Hrblock taxcut 3. Hrblock taxcut   Gifts Table of Contents If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Hrblock taxcut This chapter explains the limits and rules for deducting the costs of gifts. Hrblock taxcut $25 limit. Hrblock taxcut   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. Hrblock taxcut A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. Hrblock taxcut   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. Hrblock taxcut This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use. Hrblock taxcut   If you and your spouse both give gifts, both of you are treated as one taxpayer. Hrblock taxcut It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. Hrblock taxcut If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. Hrblock taxcut Example. Hrblock taxcut Bob Jones sells products to Local Company. Hrblock taxcut He and his wife, Jan, gave Local Company three gourmet gift baskets to thank them for their business. Hrblock taxcut They paid $80 for each gift basket, or $240 total. Hrblock taxcut Three of Local Company's executives took the gift baskets home for their families' use. Hrblock taxcut Bob and Jan have no independent business relationship with any of the executives' other family members. Hrblock taxcut They can deduct a total of $75 ($25 limit × 3) for the gift baskets. Hrblock taxcut Incidental costs. Hrblock taxcut   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. Hrblock taxcut   A cost is incidental only if it does not add substantial value to the gift. Hrblock taxcut For example, the cost of gift wrapping is an incidental cost. Hrblock taxcut However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. Hrblock taxcut Exceptions. Hrblock taxcut   The following items are not considered gifts for purposes of the $25 limit. Hrblock taxcut An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. Hrblock taxcut Examples include pens, desk sets, and plastic bags and cases. Hrblock taxcut Signs, display racks, or other promotional material to be used on the business premises of the recipient. Hrblock taxcut    Figure B. Hrblock taxcut When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. Hrblock taxcut (Do not use this chart if your home is your principal place of business. Hrblock taxcut See Office in the home . Hrblock taxcut ) Please click here for the text description of the image. Hrblock taxcut Figure B. Hrblock taxcut When Are Local Transportation Expenses Deductible?TAs for Figure B are: Reg 1. Hrblock taxcut 162-1(a); RR 55–109; RR 94–47 Gift or entertainment. Hrblock taxcut   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Hrblock taxcut However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. Hrblock taxcut    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Hrblock taxcut You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. Hrblock taxcut   You can change your treatment of the tickets at a later date by filing an amended return. Hrblock taxcut Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. Hrblock taxcut    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Hrblock taxcut You cannot choose, in this case, to treat the cost of the tickets as a gift expense. Hrblock taxcut Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - SOI Working Papers

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Statistics of Income Working Papers

The Statistics of Income (SOI) working papers present new and exciting research on the U.S. Federal tax system and the methods used to produce tax statistics. Papers are presented at professional conferences, such as the Joint Statistical Meeting of the American Statistical Association and the National Tax Association’s annual conference on taxation, and are often published in professional journals. Below you will find a selection of papers organized by presentation year.

Papers in this series generally do not undergo the extensive review and editorial process accorded official SOI publications. Instead, these working papers are intended to make results of research available to others and to encourage discussion on a variety of topics. As a result, papers may be occasionally revised or updated.

Jump to a year:

1997  1998  1999  2000  2001  2002  2003  2004  2005  2006  2007  2008  2009  2011  2013  2014


2014

Older Taxpayers’ Response to Taxation of Social Security Benefits
Leonard Burman, Syracuse University and the Tax Policy Center, Norma B. Coe, University of Washington and the National Bureau of Economic Research, Kevin Pierce, Internal Revenue Service, Liu Tian, Syracuse University

Over the Top: How Tax Returns Show that the Very Rich Are Different from You and Me
Jenny Bourne and Lisa Rosenmerkel

The Economic Impact of Tax Expenditures: Evidence from Spatial Variation Across the U.S.
Associated Tables (.xls format)
Raj Chetty and Nathaniel Hendren, Harvard University and the National Bureau of Economic Research, and, Patrick Kline and Emmanuel Saez, University of California, Berkeley and the National Bureau of Economic Research

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2013

The Home Mortgage Interest Deduction and Migratory Insurance Over the Great Recession
Danny Yagan, University of California, Berkeley

Do Financial Frictions Amplify Fiscal Policy? Evidence from Business Investment Stimulus
Eric Zwick and James Mahon, Harvard University

A New Look at the Income-Wealth Connection for America’s Wealthiest Decedents
Barry Johnson, Brian Raub, and Joseph Newcomb, Statistics of Income, IRS

A Comparison of Wealth Estimates For America’s Wealthiest Decedents Using Tax Data and Data From The Forbes 400
Barry Johnson, Brian Raub, and Joseph Newcomb, Statistics of Income, IRS

Capital Tax Reform and the Real Economy: The Effects of the 2003 Dividend Tax Cut
Danny Yagan, University of California, Berkeley

Do Tax Credits for Parents Affect Child College Enrollment?
Nathaniel G. Hilger, Brown University

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2011

New Evidence on the Long-Term Impacts of Tax Credits
Raj Chetty and JohnFriedman, Harvard University and the National Bureau of Economic Research, and Jonah Rockoff, Columbia University and the National Bureau of Economic Research

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2009

Variance Estimation for Estimators of Between-Year Change in Totals from Two Stratified Bernoulli Samples
Henry, Kimberly; Testa, Valerie; Valliant, Richard

The Effect of Late-Filed Returns on Population Estimates: A Comparative Analysis
Raub, Brian; Belmonte, Cynthia; Arnsberger, Paul; Ludlum, Melissa

Variance Estimation for Estimators of Between-Year Change in Totals from Two Stratified Bernoulli Samples
Kimberly Henry and Valerie Testa, Internal Revenue Service and Richard Valliant, University of Michigan

The Effect of Late-Filed Returns on Population Estimates: A Comparative Analysis
Brian Raub, Cynthia Belmonte, Paul Arnsberger, and Melissa Ludlum, Internal Revenue Service

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2008

Dissemination Of Statistical Products: The IRS’s Journey
Gangi, Martha Eller

Attrition in the Individual Income Tax Return Panel, Tax Years 1999–2005
Bryant, Victoria

Statistics of Income Sales of Capital Assets Sample Redesign for Tax Year 2007
Liu, Yan; Scali, Jana; Strudler, Michael; Wilson, Janette

90 Years of SOI: A Collection of Historical Articles
Multiple Authors

Using Audit Data To Estimate Taxpayer Reporting Error in the Statistics of Income Division's Individual Tax Return Sample
Henry, Kimberly

Differences in Income Estimates Derived from Survey and Tax Data
Johnson, Barry; Moore, Kevin

Old Tabulations, Old Files, and a Brief History of Individual Tax Return Sampling
Weber, Michael; Paris, David; Sailer, Peter

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2007

Measuring Disclosure Risk and an Examination of the Possibilities of Using Synthetic Data in the Individual Income Tax Return Public Use File
Vartivarian, Sonya; Czajka, John; Weber, Michael

Measuring the Quality of Service to Taxpayers in Volunteer Sites
Cecco, Kevin; Walsh, Ronald; Hooker, Rachael

SOI Develops Better Survey Questions Through Pretesting
Milleville, Diane; Wells, Tara

Using the Statistics of Income Division's Sample Data To Reduce Measurement and Processing Error in Small-Area Estimates Produced from Administrative Tax Records
Henry, Kimberly; Lahiri, Partha; Fisher, Robin

An Empirical Evaluation of Various Direct, Synthetic, and Traditional Composite Small-Area Estimators
Henry, Kimberly; Strudler, Michael; Chen, William

Evaluating Alternative One-Sided Coverage Intervals for an Extreme Binomial Proportion
Liu, Yan; Kott, Phillip

Improving the Quality of U.S. Tax Statistics: Recent Innovations in Editing and Imputation Techniques at the Statistics of Income Division of the U.S. Internal Revenue Service
Scott M. Hollenbeck, Melissa Ludlum, and Barry W. Johnson, Internal Revenue Service

Using an Individual Income Tax Panel File To Measure Changes in Marginal Tax Rates: Opportunities
Diamond, John; Rector, Ralph; Weber, Michael

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2006

Social Security Taxes, Social Security Benefits, and Social Security Benefits Taxation, 2003
Sailer, Peter; Pierce, Kevin; Lomize, Evgenia

Analysis of the Distributions of Income, Taxes, and Payroll Taxes via Cross Section and Panel Data, 1979–2004
Strudler, Michael; Hentz, Lori; Petska, Tom; Petska, Ryan

Performance Measurement within the Statistics of Income Division
Cecco, Kevin

Customer Satisfaction Initiatives at IRS’s Statistics of Income: Using Surveys to Improve Customer Service
Schwartz, Ruth; Kilss, Beth

Tying Website Performance to Mission Achievement in the Federal Government
Milleville, Diane

The Tax Year 1999–2003 Individual Income Tax Return Panel: A First Look at the Data
Weber, Michael

Application of an Evolutionary Algorithm to Multivariate Optimal Allocation in Stratified Sample Designs
Day, Charles

Factors in Estates’ Utilization of Special Tax Provisions for Family-Owned Farms and Closely Held Businesses
Gangi, Martha Eller; Henry, Kimberly; Raub, Brian

Corporation Life Cycles: Examining Attrition Trends and Return Characteristics in Statistics of Income Cross-Sectional 1120 Samples
Matthew L. Scoffic

An Analysis of the Free File Program
Chu, Michelle; Kovalick, Melissa

Comparing Strategies To Estimate a Measure of Heteroscedasticity
Henry, Kimberly; Valliant, Richard

Creativity and Compromise: Constructing a Panel of Income and Estate Tax Data for Wealthy Individuals
Johnson, Barry; Schreiber, Lisa

Monitoring Statistics of Income (SOI) Samples
Koshansky, Joseph

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2005

Trends in 401(k) and IRA Contribution Activity, 1999–2002—Results from a Panel of Matched Tax Returns and Information Documents
Sailer, Peter; Bryant, Victoria Holden, Sarah

The 1999 Individual Income Tax Return Edited Panel
Weber, Michael; Bryant, Victoria

A Cluster Analysis Approach To Describing Tax Data
Raub, Brian; Chen, William

Origins of the Estate and Personal Wealth Sample Design
McMahon, Paul

Corporation Supercritical Cases: How Do Imputed Returns on the Corporate File Compare to the Actual Returns?
Davitian, Lucy

Internal Revenue Service Area-To-Area Migration Data: Strengths, Limitations, and Current Trends
Gross, Emily

A Comparison of Income Concepts: IRS Statistics of Income, Census Current Population Survey, and BLS Consumer Expenditure Survey
Henry, Eric; Day, Charles

Measuring Nonsampling Error in the Statistics of Income Individual Tax Return Study
Scali, Jana; Testa, Valerie; Kahr, Maureen; Strudler, Michael

The Impact of the Followup Process on the 2002 Foreign Tax Credit Study Data
Singmaster, Rob; Redmiles, Lissa

Prelude to Schedule M–3: Schedule M–1 Corporate Book-Tax Difference Data, 1990–2003
Boynton, Charles; DeFilippes, Portia; Legel, Ellen

An Essay on the Effects of Taxation on the Corporate Financial Policy
Contos, George

An Analysis of Business Organizational Structure and Activity from Tax Data
Petska, Tom; Parisi, Michael; Luttrell, Kelly; Davitian, Lucy; Scoffic, Matt

Geographic Variation in Schedule H Filing Rates: Why Should Location Influence the Decision To Report Nanny Taxes?
Bloomquist, Kim; An, Zhiyong

Current Research in the Nonprofit Sector
Arnsberger, Paul; Ludlum, Melissa; Riley, Margaret

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2004

Use of Individual Retirement Arrangements to Save for Retirement—Results From a Matched File of Tax Returns and Information Documents for Tax Year 2001
Sailer, Peter; Holden, Sarah

Further Analysis of the Distribution of Income and Taxes, 1979–2003
Strudler, Michael; Petska, Tom; Petska, Ryan

The Statistics of Income 1979–2002 Continuous Work History Sample Individual Income Tax Return Panel
Weber, Michael

Assessing Industry Codes on the IRS Business Master File
McMahon, Paul

Customer Satisfaction Initiatives within the Statistics of Income Division of the Internal Revenue Service
Cecco, Kevin

The Evolution of IRS Telephone Quality Measures
Rosage, Laura

Some New Tables for Upper Probability Points of the Largest Root of a Determinantal Equation
Chen, William

Editor Judgment Effect: Modeling a Key Component of Nonsampling Error in Administrative Data
Henry, Kimberly; Ahmed, Yahia; Legel, Ellen

The Effect of Content Errors on Bias and Nonsampling Variance in Estimates Derived From Samples
Johnson, Barry; Jacobson,Darien B.

Data Interpretation across Sources: A Study of Form 990–PF Information Collected from Multiple Databases
Ludlum, Melissa

Recent Research on Small Business Compliance Burden
Guyton, John; Kindlon, Audrey; Zhou, Jian

The Mismeasure of Man’s Well-Being: Refining Realized Income Measures with Wealth, Portfolio, and Mortality Information
Johnson, Barry; Wahl, Jenny

Tax Evasion and Entrepreneurship: The Effect of Income Reporting Policies on Evasion. An Experimental Approach
Alm, James; Deskins, John; McKee, Michael

Audit Information Dissemination, Taxpayer Communication and Tax Compliance: An Experimental Investigation of Indirect Audit Effects
Alm, James; Jackson, Betty; McKee, Michael

Multi-Agent Based Simulation of the Deterrent Effects of Taxpayer Audits
Bloomquist, Kim

Developing Adoptable Disclosure Protection Techniques: Lessons Learned From a U.S. Experience
Greenia, Nicholas

Consider the Source: Differences in Income Estimates Derived from Survey and Tax Data
Johnson, Barry; Moore, Kevin

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2003

The Effects of Tax Reform on the Structure of U.S. Business
Legel, Ellen; Bennett, Kelly; Parisi, Michael

Accumulation and Distributions of Retirement Assets, 1996–2000—Results from a Matched File of Tax Returns and Information Returns
Sailer, Peter; Gurka, Kurt; Holden, Sarah

An Analysis of the Distribution of Individual Income and Taxes, 1979–2001
Strudler, Michael; Petska, Tom; Petska, Ryan

IRS Seeks to Develop New Web-Based Measurement Indicators for IRS.gov
Dixon, Diane

Statistical Information Services at IRS: Improving Dissemination of Data and Satisfying the Customer
Kilss, Beth; Jordan, David

Recent Efforts to Maximize Benefits from the Statistics of Income Advisory Panel
Petska, Tom; Kilss, Beth

Regulatory Exemptions and Item Nonresponse
McMahon, Paul

Comparing Scoring Systems From Cluster Analysis and Discriminant Analysis Using Random Samples
Wong, William; Ho, Chih-Chin

Estimating the Compliance Cost of the U.S. Individual Income Tax
Toder, Eric J.; Guyton, John; O'Hare, John; Stavrianos, Michael

Tax Evasion, Income Inequality and Opportunity Costs of Compliance
Bloomquist, Kim

IRS's Comprehensive Approach to Compliance Measurement
Brown, Robert; Mazur, Mark

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2002

Salaries and Wages and Deferred Income, 1989–1999
Sailer, Peter; Yau, Ellen; Gurka, Kurt; Weber, Michael

Proxies in Administrative Records Surveys
McMahon, Paul

Assessing Disclosure Protection for a SOI Public Use File
Winglee, Marianne; Valliant, Richard; Clark, Jay; Lim, Yunhee; Weber, Michael; Strudler, Michael

Electronic Dissemination of Internal Revenue Service Locality Data
Gross, Emily; Kilss, Beth

Analysis of the 1998 Gift Tax Panel Study
Eller, Martha Britton; Rib, Tamara

Evaluating the Effect of Sample Size Changes on Scoring System Performance Using Bootstraps and Random Samples
Wong, William; Ho, Chih-Chin

Using Auxiliary Information to Adjust for Non-Response in Weighting a Linked Sample of Administrative Records
Johnson, Barry: McMahon, Paul

Developing an Econometric Model for Measuring Tax Noncompliance Using Operational Audit Data
Erard, Brian; Ho, Chih-Chin

Some New Tables of the Largest Root of a Matrix in Multivariate Analysis: A Computer Approach from 2 to 6
Chen, William

Are Taxpayers Increasing the Buildup of Retirement Assets? Preliminary Results from a Matched File of Tax Year 1999 Tax Returns and Information Returns
Sailer, Peter; Weber, Michael; Gurka, Kurt

New Estimates of the Distribution of Individual Income and Taxes
Strudler, Michael; Petska, Tom; Petska, Ryan

How the Quality of Responses the IRS Provides to Taxpayer Inquiries is Measured
Cecco, Kevin; Hoopengardner, Rachael

The Impact of the IRS on Voluntary Tax Compliance: Preliminary Empirical Results
Plumley, Alan

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2001

Taxing Charity: Linking Income Tax Returns to Samples of Nonexempt Charitable and Charitable Remainder
Belvedere, Melissa; Mikow, Jacob; Whitten, Melissa

The 1998 Gift Tax Panel Study: Using The IRS Returns Transaction File as a Sample Frame
Eller, Martha Britton; Rib, Tamara

Sample Design Revisions in the Wake of NAICS and Regulatory Changes
McMahon, Paul

Statistical Information from Administrative Records in the Federal Tax System
Petska, Tom

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2000

Exporting a Statistical System: Towards Establishing a Tax Statistics Function in South Africa
Petska, Tom

Beyond Andrew Carnegie: Using a Linked Sample of Federal Income and Estate Tax Returns to Examine the Effects of Bequests on Beneficiary Behavior
Mikow, Jacob; Berkowitz, Darien

Statistical Consulting Within the Internal Revenue Service
Cecco, Kevin; Walsh, Ronald

Attrition in a Panel of Individual Income Tax Returns, 1992–1997
Sailer, Peter; Weber, Michael; Wong, William

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1999

The Distribution of Individual Income and Taxes: A New Look at an Old Issue
Petska, Tom; Strudler, Mike

Personal Wealth, 1995
Johnson, Barry

Further Examination of the Distribution of Individual Income and Taxes Using a Consistent and Comprehensive Measure of Income
Petska, Tom; Strudler, Mike; Petska, Ryan

Customer Service Satisfaction Survey: Cognitive and Prototype Test
Cecco, Kevin; Young, Anthony

On Computing Gaussian Curvature of Some Well Known Distributions
Chen, William

The Feasiblity of State Corporate Data
Francis, Brian

Using a Sample of Federal Estate Tax Returns to Examine the Effects of Audit Revaluation on Pre-Audit Estimates
Eller, Martha Britton; Johnson, Barry

Occupation and Industry Data from Tax Year 1993 Individual Tax Returns
Sailer, Peter; Nuriddin, Terry

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1998

Income, Tax, and Tax Progressivity: An Examination of Recent Trends in the Distribution of Individual Income and Taxes
Petska, Tom; Strudler, Mike

Updating Techniques for Estimating Wealth from Federal Estate Tax Returns
Johnson, Barry

The IRS Population Count: An Update
Sailer, Peter; Weber, Michael

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1997

Taxes and Business Organizational Choice: Deja Vu All Over Again?
Petska, Tom

Partnerships in Data Sharing: The Internal Revenue Service and the Bureau of Economic Analysis
Petska, Tom

Federal Taxation of Inheritance and Wealth Transfers
Johnson, Barry; Eller, Martha Britton

Household and Individual Income Data from Tax Returns
Sailer, Peter; Weber, Michael

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Page Last Reviewed or Updated: 10-Mar-2014

The Hrblock Taxcut

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