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Myfreetaxes 6. Myfreetaxes   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Myfreetaxes Free help with your tax return. Myfreetaxes   You can get free help preparing your return nationwide from IRS-certified volunteers. Myfreetaxes The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Myfreetaxes The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Myfreetaxes Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Myfreetaxes In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Myfreetaxes To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Myfreetaxes gov, download the IRS2Go app, or call 1-800-906-9887. Myfreetaxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. Myfreetaxes To find the nearest AARP Tax-Aide site, visit AARP's website at www. Myfreetaxes aarp. Myfreetaxes org/money/taxaide or call 1-888-227-7669. Myfreetaxes For more information on these programs, go to IRS. Myfreetaxes gov and enter “VITA” in the search box. Myfreetaxes Internet. Myfreetaxes    IRS. Myfreetaxes gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Myfreetaxes Download the free IRS2Go app from the iTunes app store or from Google Play. Myfreetaxes Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Myfreetaxes Check the status of your 2013 refund with the Where's My Refund? application on IRS. Myfreetaxes gov or download the IRS2Go app and select the Refund Status option. Myfreetaxes The IRS issues more than 9 out of 10 refunds in less than 21 days. Myfreetaxes Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Myfreetaxes You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Myfreetaxes The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Myfreetaxes Use the Interactive Tax Assistant (ITA) to research your tax questions. Myfreetaxes No need to wait on the phone or stand in line. Myfreetaxes The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Myfreetaxes When you reach the response screen, you can print the entire interview and the final response for your records. Myfreetaxes New subject areas are added on a regular basis. Myfreetaxes  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Myfreetaxes gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Myfreetaxes You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Myfreetaxes The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Myfreetaxes When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Myfreetaxes Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Myfreetaxes You can also ask the IRS to mail a return or an account transcript to you. Myfreetaxes Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Myfreetaxes gov or by calling 1-800-908-9946. Myfreetaxes Tax return and tax account transcripts are generally available for the current year and the past three years. Myfreetaxes Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Myfreetaxes Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Myfreetaxes If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Myfreetaxes Check the status of your amended return using Where's My Amended Return? Go to IRS. Myfreetaxes gov and enter Where's My Amended Return? in the search box. Myfreetaxes You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Myfreetaxes It can take up to 3 weeks from the date you mailed it to show up in our system. Myfreetaxes Make a payment using one of several safe and convenient electronic payment options available on IRS. Myfreetaxes gov. Myfreetaxes Select the Payment tab on the front page of IRS. Myfreetaxes gov for more information. Myfreetaxes Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Myfreetaxes Figure your income tax withholding with the IRS Withholding Calculator on IRS. Myfreetaxes gov. Myfreetaxes Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Myfreetaxes Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Myfreetaxes gov. Myfreetaxes Request an Electronic Filing PIN by going to IRS. Myfreetaxes gov and entering Electronic Filing PIN in the search box. Myfreetaxes Download forms, instructions and publications, including accessible versions for people with disabilities. Myfreetaxes Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Myfreetaxes gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Myfreetaxes An employee can answer questions about your tax account or help you set up a payment plan. Myfreetaxes Before you visit, check the Office Locator on IRS. Myfreetaxes gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Myfreetaxes If you have a special need, such as a disability, you can request an appointment. Myfreetaxes Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Myfreetaxes Apply for an Employer Identification Number (EIN). Myfreetaxes Go to IRS. Myfreetaxes gov and enter Apply for an EIN in the search box. Myfreetaxes Read the Internal Revenue Code, regulations, or other official guidance. Myfreetaxes Read Internal Revenue Bulletins. Myfreetaxes Sign up to receive local and national tax news and more by email. Myfreetaxes Just click on “subscriptions” above the search box on IRS. Myfreetaxes gov and choose from a variety of options. Myfreetaxes Phone. Myfreetaxes    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Myfreetaxes Download the free IRS2Go app from the iTunes app store or from Google Play. Myfreetaxes Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Myfreetaxes gov, or download the IRS2Go app. Myfreetaxes Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Myfreetaxes The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Myfreetaxes Most VITA and TCE sites offer free electronic filing. Myfreetaxes Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Myfreetaxes Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Myfreetaxes Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Myfreetaxes If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Myfreetaxes The IRS issues more than 9 out of 10 refunds in less than 21 days. Myfreetaxes Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Myfreetaxes Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Myfreetaxes The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Myfreetaxes Note, the above information is for our automated hotline. Myfreetaxes Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Myfreetaxes Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Myfreetaxes You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Myfreetaxes It can take up to 3 weeks from the date you mailed it to show up in our system. Myfreetaxes Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Myfreetaxes You should receive your order within 10 business days. Myfreetaxes Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Myfreetaxes If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Myfreetaxes Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Myfreetaxes The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Myfreetaxes These individuals can also contact the IRS through relay services such as the Federal Relay Service. Myfreetaxes Walk-in. Myfreetaxes   You can find a selection of forms, publications and services — in-person. Myfreetaxes Products. Myfreetaxes You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Myfreetaxes Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Myfreetaxes Services. Myfreetaxes You can walk in to your local TAC for face-to-face tax help. Myfreetaxes An employee can answer questions about your tax account or help you set up a payment plan. Myfreetaxes Before visiting, use the Office Locator tool on IRS. Myfreetaxes gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Myfreetaxes Mail. Myfreetaxes   You can send your order for forms, instructions, and publications to the address below. Myfreetaxes You should receive a response within 10 business days after your request is received. Myfreetaxes Internal Revenue Service 1201 N. Myfreetaxes Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Myfreetaxes The Taxpayer Advocate Service (TAS) is your voice at the IRS. Myfreetaxes Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Myfreetaxes   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Myfreetaxes We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Myfreetaxes You face (or your business is facing) an immediate threat of adverse action. Myfreetaxes You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Myfreetaxes   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Myfreetaxes Here's why we can help: TAS is an independent organization within the IRS. Myfreetaxes Our advocates know how to work with the IRS. Myfreetaxes Our services are free and tailored to meet your needs. Myfreetaxes We have offices in every state, the District of Columbia, and Puerto Rico. Myfreetaxes   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Myfreetaxes   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Myfreetaxes If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Myfreetaxes Low Income Taxpayer Clinics (LITCs). Myfreetaxes   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Myfreetaxes Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Myfreetaxes Visit www. Myfreetaxes TaxpayerAdvocate. Myfreetaxes irs. Myfreetaxes gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Myfreetaxes Prev  Up  Next   Home   More Online Publications
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If you suspect a law has been violated, contact your state or local consumer protection agency. This agency may take action or refer you to another state organization that has the authority where you live. A local law enforcement officer could also be able to provide advice and assistance.

Violations of federal laws should be reported to the federal agency responsible for enforcement. While federal agencies are rarely able to act on behalf of individual consumers, complaints are used to document patterns of abuse, allowing the agency to take action against a company.

You can find the appropriate federal agency to contact with your complaint by using this online directory.

People who have no intention of delivering what is sold, who misrepresent items, send counterfeit goods or otherwise try to trick you out of your money are committing fraud. If you suspect fraud, there are some additional steps to take.

  • Contact the Federal Trade Commission.
  • Scams that used the mail or interstate delivery service should also be reported to the U.S. Postal Inspection Service. It is illegal to use the mail to misrepresent or steal money.

Reporting fraud promptly improves your chances of recovering what you have lost and helps law enforcement authorities stop scams before others are victimized.

If you suspect you have a product that poses a safety hazard, report the problem to the appropriate federal agency:

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