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2008 Turbotax Download

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2008 turbotax download 8. 2008 turbotax download   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. 2008 turbotax download Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. 2008 turbotax download Introduction This chapter discusses how to pay your U. 2008 turbotax download S. 2008 turbotax download income tax as you earn or receive income during the year. 2008 turbotax download In general, the federal income tax is a pay as you go tax. 2008 turbotax download There are two ways to pay as you go. 2008 turbotax download Withholding. 2008 turbotax download If you are an employee, your employer probably withholds income tax from your pay. 2008 turbotax download Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. 2008 turbotax download In each case, the amount withheld is paid to the U. 2008 turbotax download S. 2008 turbotax download Treasury in your name. 2008 turbotax download Estimated tax. 2008 turbotax download If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 2008 turbotax download People who are in business for themselves generally will have to pay their tax this way. 2008 turbotax download You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. 2008 turbotax download Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. 2008 turbotax download Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. 2008 turbotax download Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. 2008 turbotax download S. 2008 turbotax download Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. 2008 turbotax download S. 2008 turbotax download Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. 2008 turbotax download S. 2008 turbotax download Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. 2008 turbotax download Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. 2008 turbotax download If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. 2008 turbotax download If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. 2008 turbotax download If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. 2008 turbotax download However, if the income is effectively connected with a U. 2008 turbotax download S. 2008 turbotax download trade or business, file Form W-8ECI instead. 2008 turbotax download Withholding From Compensation The following discussion generally applies only to nonresident aliens. 2008 turbotax download Tax is withheld from resident aliens in the same manner as U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. 2008 turbotax download Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. 2008 turbotax download Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). 2008 turbotax download These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). 2008 turbotax download Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. 2008 turbotax download This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. 2008 turbotax download Enter your social security number (SSN) on line 2. 2008 turbotax download Do not enter an individual taxpayer identification number (ITIN). 2008 turbotax download Check only “Single” marital status on line 3 (regardless of your actual marital status). 2008 turbotax download Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. 2008 turbotax download S. 2008 turbotax download national. 2008 turbotax download Write “Nonresident Alien” or “NRA” on the dotted line on line 6. 2008 turbotax download You can request additional withholding on line 6 at your option. 2008 turbotax download Do not claim “Exempt” withholding status on line 7. 2008 turbotax download A U. 2008 turbotax download S. 2008 turbotax download national is an individual who, although not a U. 2008 turbotax download S. 2008 turbotax download citizen, owes his or her allegiance to the United States. 2008 turbotax download U. 2008 turbotax download S. 2008 turbotax download nationals include American Samoans, and Northern Mariana Islanders who chose to become U. 2008 turbotax download S. 2008 turbotax download nationals instead of U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. 2008 turbotax download S. 2008 turbotax download source scholarship or fellowship grant that is not a payment for services. 2008 turbotax download Students and business apprentices from India. 2008 turbotax download   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. 2008 turbotax download You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. 2008 turbotax download S. 2008 turbotax download taxpayer's 2013 return. 2008 turbotax download You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download Household employees. 2008 turbotax download   If you work as a household employee, your employer does not have to withhold income tax. 2008 turbotax download However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. 2008 turbotax download The agreement goes into effect when your employer accepts the agreement by beginning the withholding. 2008 turbotax download You or your employer may end the agreement by letting the other know in writing. 2008 turbotax download Agricultural workers. 2008 turbotax download   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. 2008 turbotax download However, your employer will withhold income tax only if you and your employer agree to withhold. 2008 turbotax download In that case, you must provide your employer with a properly completed Form W-4. 2008 turbotax download You can find more information about not having tax withheld at www. 2008 turbotax download irs. 2008 turbotax download gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 2008 turbotax download Wages Exempt From Withholding Wages that are exempt from U. 2008 turbotax download S. 2008 turbotax download income tax under an income tax treaty are generally exempt from withholding. 2008 turbotax download For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. 2008 turbotax download Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. 2008 turbotax download S. 2008 turbotax download Virgin Islands may be exempt from withholding. 2008 turbotax download The following paragraphs explain these exemptions. 2008 turbotax download Residents of Canada or Mexico engaged in transportation-related employment. 2008 turbotax download   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. 2008 turbotax download These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. 2008 turbotax download    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. 2008 turbotax download   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. 2008 turbotax download S. 2008 turbotax download citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. 2008 turbotax download   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. 2008 turbotax download Residents of American Samoa and Puerto Rico. 2008 turbotax download   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. 2008 turbotax download Residents of the U. 2008 turbotax download S. 2008 turbotax download Virgin Islands. 2008 turbotax download   Nonresident aliens who are bona fide residents of the U. 2008 turbotax download S Virgin Islands are not subject to withholding of U. 2008 turbotax download S. 2008 turbotax download tax on income earned while temporarily employed in the United States. 2008 turbotax download This is because those persons pay their income tax to the U. 2008 turbotax download S. 2008 turbotax download Virgin Islands. 2008 turbotax download To avoid having tax withheld on income earned in the United States, bona fide residents of the U. 2008 turbotax download S. 2008 turbotax download Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. 2008 turbotax download S. 2008 turbotax download Virgin Islands and expect to pay tax on all income to the U. 2008 turbotax download S. 2008 turbotax download Virgin Islands. 2008 turbotax download Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. 2008 turbotax download You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. 2008 turbotax download You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. 2008 turbotax download Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. 2008 turbotax download S. 2008 turbotax download income tax. 2008 turbotax download Include them in taxable income. 2008 turbotax download In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. 2008 turbotax download Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. 2008 turbotax download However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. 2008 turbotax download An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. 2008 turbotax download You must agree to timely file an income tax return for the current tax year. 2008 turbotax download Central withholding agreements. 2008 turbotax download   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. 2008 turbotax download Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. 2008 turbotax download   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. 2008 turbotax download Either you or your authorized representative can file the form. 2008 turbotax download It should be sent to the IRS at least 45 days before the tour begins or the event occurs. 2008 turbotax download Exceptions will be considered on a case by case basis. 2008 turbotax download   For more information on the CWA program, go to www. 2008 turbotax download irs. 2008 turbotax download gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. 2008 turbotax download Final payment exemption. 2008 turbotax download   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. 2008 turbotax download This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. 2008 turbotax download To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. 2008 turbotax download A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. 2008 turbotax download Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 2008 turbotax download A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. 2008 turbotax download This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. 2008 turbotax download A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. 2008 turbotax download The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. 2008 turbotax download The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. 2008 turbotax download Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. 2008 turbotax download A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. 2008 turbotax download   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. 2008 turbotax download Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. 2008 turbotax download   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. 2008 turbotax download You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. 2008 turbotax download Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). 2008 turbotax download To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. 2008 turbotax download S. 2008 turbotax download national and are not a resident of Canada, Mexico, or South Korea. 2008 turbotax download For purposes of 30% withholding, the exemption is prorated at $10. 2008 turbotax download 82 a day in 2014 for the period that labor or personal services are performed in the United States. 2008 turbotax download To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. 2008 turbotax download Example. 2008 turbotax download Eric Johannsen, who is a resident of Country X worked under a contract with a U. 2008 turbotax download S. 2008 turbotax download firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. 2008 turbotax download He earned $6,000 for the services performed (not considered wages) in the United States. 2008 turbotax download Eric is married and has three dependent children. 2008 turbotax download His wife is not employed and has no income subject to U. 2008 turbotax download S. 2008 turbotax download tax. 2008 turbotax download The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. 2008 turbotax download 82), and withholding at 30% is applied against the balance. 2008 turbotax download Thus, $1,475. 2008 turbotax download 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). 2008 turbotax download U. 2008 turbotax download S. 2008 turbotax download nationals or residents of Canada, Mexico, or South Korea. 2008 turbotax download   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. 2008 turbotax download However, if you are a U. 2008 turbotax download S. 2008 turbotax download national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download For the 30% (or lower treaty) rate withholding, you can take $10. 2008 turbotax download 82 per day for each allowable exemption in 2014. 2008 turbotax download If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. 2008 turbotax download However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . 2008 turbotax download Students and business apprentices from India. 2008 turbotax download   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. 2008 turbotax download S. 2008 turbotax download taxpayer's 2014 return. 2008 turbotax download You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. 2008 turbotax download 82 per day for each allowable exemption in 2014. 2008 turbotax download Refund of Taxes Withheld in Error Multi-level marketing. 2008 turbotax download   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. 2008 turbotax download S. 2008 turbotax download income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. 2008 turbotax download You must also attach to the U. 2008 turbotax download S. 2008 turbotax download income tax return or claim for refund supporting information that includes, but is not limited to, the following items. 2008 turbotax download A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. 2008 turbotax download A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. 2008 turbotax download S. 2008 turbotax download taxation. 2008 turbotax download A statement listing all the dates you entered and left the United States during the taxable year. 2008 turbotax download If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. 2008 turbotax download A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. 2008 turbotax download A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. 2008 turbotax download Any further relevant document or record supporting your claim that the taxes were withheld in error. 2008 turbotax download Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. 2008 turbotax download It also includes 85% of social security benefits paid to nonresident aliens. 2008 turbotax download Refund of taxes withheld in error on social security benefits paid to resident aliens. 2008 turbotax download   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. 2008 turbotax download For U. 2008 turbotax download S. 2008 turbotax download income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. 2008 turbotax download See Green Card Test in chapter 1. 2008 turbotax download 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. 2008 turbotax download SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. 2008 turbotax download If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. 2008 turbotax download You must also attach the following to your Form 1040 or 1040A. 2008 turbotax download A copy of Form SSA-1042S, Social Security Benefit Statement. 2008 turbotax download A copy of the “green card. 2008 turbotax download ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. 2008 turbotax download S. 2008 turbotax download lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 2008 turbotax download I am filing a U. 2008 turbotax download S. 2008 turbotax download income tax return for the tax year as a resident alien reporting all of my worldwide income. 2008 turbotax download I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. 2008 turbotax download Other income not subject to withholding of 30% (or lower treaty) rate. 2008 turbotax download   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. 2008 turbotax download Income (other than compensation) that is effectively connected with your U. 2008 turbotax download S. 2008 turbotax download trade or business. 2008 turbotax download Income from real property that you choose to treat as effectively connected with a U. 2008 turbotax download S. 2008 turbotax download trade or business. 2008 turbotax download See Income From Real Property in chapter 4 for details about this choice. 2008 turbotax download   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. 2008 turbotax download Tax Withheld on Partnership Income If you are a foreign partner in a U. 2008 turbotax download S. 2008 turbotax download or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. 2008 turbotax download You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. 2008 turbotax download Generally, you must use Form 8804-C for this purpose. 2008 turbotax download See the Instructions for Form 8804-C for more information. 2008 turbotax download The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. 2008 turbotax download 6% for 2014). 2008 turbotax download However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. 2008 turbotax download Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. 2008 turbotax download Claim the tax withheld as a credit on your 2014 Form 1040NR. 2008 turbotax download The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. 2008 turbotax download A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. 2008 turbotax download In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. 2008 turbotax download S. 2008 turbotax download Source Income Subject to Withholding. 2008 turbotax download Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. 2008 turbotax download See chapter 3. 2008 turbotax download If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. 2008 turbotax download S. 2008 turbotax download source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. 2008 turbotax download However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. 2008 turbotax download Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. 2008 turbotax download Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). 2008 turbotax download Use the following instructions instead of the Form W-4 instructions to complete the worksheet. 2008 turbotax download Line A. 2008 turbotax download   Enter the total of the following amounts on line A. 2008 turbotax download Personal exemption. 2008 turbotax download   Include the prorated part of your allowable personal exemption. 2008 turbotax download Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. 2008 turbotax download 82). 2008 turbotax download Expenses. 2008 turbotax download   Include expenses that will be deductible on your return. 2008 turbotax download These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. 2008 turbotax download They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. 2008 turbotax download Nontaxable grant or scholarship. 2008 turbotax download   Include the part of your grant or scholarship that is not taxable under U. 2008 turbotax download S. 2008 turbotax download law or under a tax treaty. 2008 turbotax download Line B. 2008 turbotax download   Enter -0- unless the following paragraph applies to you. 2008 turbotax download   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. 2008 turbotax download The standard deduction amount for 2013 is $6,100. 2008 turbotax download Lines C and D. 2008 turbotax download   Enter -0- on both lines unless the following paragraphs apply to you. 2008 turbotax download   If you are a resident of Canada, Mexico, South Korea, or a U. 2008 turbotax download S. 2008 turbotax download national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. 2008 turbotax download   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. 2008 turbotax download S. 2008 turbotax download taxpayer's 2014 return. 2008 turbotax download You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download   Enter any additional amount for your spouse on line C. 2008 turbotax download Enter any additional amount for your dependents on line D. 2008 turbotax download Lines E, F, and G. 2008 turbotax download   No entries should be made on lines E, F, and G. 2008 turbotax download Line H. 2008 turbotax download   Add the amounts on lines A through D and enter the total on line H. 2008 turbotax download Form W-4. 2008 turbotax download   Complete lines 1 through 4 of Form W-4. 2008 turbotax download Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. 2008 turbotax download   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. 2008 turbotax download S. 2008 turbotax download income tax return to be allowed the exemptions and deductions you claimed on that form. 2008 turbotax download If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. 2008 turbotax download S. 2008 turbotax download income tax return for the previous year. 2008 turbotax download If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. 2008 turbotax download S. 2008 turbotax download income tax return when required. 2008 turbotax download After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. 2008 turbotax download The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. 2008 turbotax download You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. 2008 turbotax download Use this form to prepare your annual U. 2008 turbotax download S. 2008 turbotax download income tax return. 2008 turbotax download Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. 2008 turbotax download Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. 2008 turbotax download File Form W-8BEN for income that is not personal services income. 2008 turbotax download File Form 8233 for personal services income as discussed next. 2008 turbotax download Employees and independent contractors. 2008 turbotax download   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. 2008 turbotax download   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. 2008 turbotax download This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. 2008 turbotax download In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. 2008 turbotax download Students, teachers, and researchers. 2008 turbotax download   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. 2008 turbotax download For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. 2008 turbotax download   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. 2008 turbotax download Special events and promotions. 2008 turbotax download   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. 2008 turbotax download Form 13930 is used to request a reduction in withholding. 2008 turbotax download Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. 2008 turbotax download One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. 2008 turbotax download You will be required to pay U. 2008 turbotax download S. 2008 turbotax download tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. 2008 turbotax download For more details on treaty provisions that apply to compensation, see Publication 901. 2008 turbotax download Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. 2008 turbotax download S. 2008 turbotax download real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. 2008 turbotax download A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. 2008 turbotax download S. 2008 turbotax download real property interest by the shareholder is subject to withholding at 35%. 2008 turbotax download Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. 2008 turbotax download These rules are covered in Publication 515. 2008 turbotax download For information on the tax treatment of dispositions of U. 2008 turbotax download S. 2008 turbotax download real property interests, see Real Property Gain or Loss in chapter 4. 2008 turbotax download If you are a partner in a domestic partnership, and the partnership disposes of a U. 2008 turbotax download S. 2008 turbotax download real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. 2008 turbotax download Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. 2008 turbotax download S. 2008 turbotax download Source Income Subject to Withholding (in the case of a publicly traded partnership). 2008 turbotax download Withholding is not required in the following situations. 2008 turbotax download The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. 2008 turbotax download The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. 2008 turbotax download However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. 2008 turbotax download The property disposed of is an interest in a U. 2008 turbotax download S. 2008 turbotax download corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. 2008 turbotax download S. 2008 turbotax download real property interest. 2008 turbotax download You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. 2008 turbotax download S. 2008 turbotax download taxpayer identification number, and home address. 2008 turbotax download You can give the certification to a qualified substitute. 2008 turbotax download The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. 2008 turbotax download For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. 2008 turbotax download The buyer receives a withholding certificate from the Internal Revenue Service. 2008 turbotax download You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. 2008 turbotax download S. 2008 turbotax download tax treaty. 2008 turbotax download The buyer must file a copy of the notice with the Ogden Service Center, P. 2008 turbotax download O. 2008 turbotax download Box 409101, Ogden, UT 84409. 2008 turbotax download You must verify the notice as true and sign it under penalties of perjury. 2008 turbotax download The notice must contain the following information. 2008 turbotax download A statement that the notice is a notice of nonrecognition under regulation section 1. 2008 turbotax download 1445-2(d)(2). 2008 turbotax download Your name, taxpayer identification number, and home address. 2008 turbotax download A statement that you are not required to recognize any gain or loss on the transfer. 2008 turbotax download A brief description of the transfer. 2008 turbotax download A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. 2008 turbotax download You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. 2008 turbotax download Instead, a withholding certificate (described next) must be obtained. 2008 turbotax download The amount you realize on the transfer of a U. 2008 turbotax download S. 2008 turbotax download real property interest is zero. 2008 turbotax download The property is acquired by the United States, a U. 2008 turbotax download S. 2008 turbotax download state or possession, a political subdivision, or the District of Columbia. 2008 turbotax download The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. 2008 turbotax download S. 2008 turbotax download real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. 2008 turbotax download For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. 2008 turbotax download See Wash sale under Real Property Gain or Loss in chapter 4. 2008 turbotax download The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. 2008 turbotax download This also applies to the qualified substitute's statement under (4). 2008 turbotax download Withholding certificates. 2008 turbotax download   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. 2008 turbotax download Either you or the buyer can request a withholding certificate. 2008 turbotax download   A withholding certificate can be issued due to any of the following. 2008 turbotax download The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. 2008 turbotax download All of your realized gain is exempt from U. 2008 turbotax download S. 2008 turbotax download tax. 2008 turbotax download You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. 2008 turbotax download   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. 2008 turbotax download Credit for tax withheld. 2008 turbotax download   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. 2008 turbotax download S. 2008 turbotax download Withholding Tax Return for Dispositions by Foreign Persons of U. 2008 turbotax download S. 2008 turbotax download Real Property Interests. 2008 turbotax download This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. 2008 turbotax download S. 2008 turbotax download Real Property Interests. 2008 turbotax download Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). 2008 turbotax download You must file Copy B with your tax return to take credit for the tax withheld. 2008 turbotax download   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. 2008 turbotax download The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. 2008 turbotax download When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. 2008 turbotax download Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. 2008 turbotax download Your payments of these taxes contribute to your coverage under the U. 2008 turbotax download S. 2008 turbotax download social security system. 2008 turbotax download Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. 2008 turbotax download In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. 2008 turbotax download All taxable wages are subject to Medicare tax. 2008 turbotax download Your employer deducts these taxes from each wage payment. 2008 turbotax download Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. 2008 turbotax download You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. 2008 turbotax download 40. 2008 turbotax download Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. 2008 turbotax download If any one employer deducted more than $7,049. 2008 turbotax download 40, you cannot claim a credit for that amount. 2008 turbotax download Ask your employer to refund the excess. 2008 turbotax download If your employer does not refund the excess, you can file a claim for refund using Form 843. 2008 turbotax download In general, U. 2008 turbotax download S. 2008 turbotax download social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. 2008 turbotax download In limited situations, these taxes apply to wages for services performed outside the United States. 2008 turbotax download Your employer should be able to tell you if social security and Medicare taxes apply to your wages. 2008 turbotax download You cannot make voluntary payments if no taxes are due. 2008 turbotax download Additional Medicare Tax. 2008 turbotax download   Beginning in 2013, in addition to the Medicare tax, a 0. 2008 turbotax download 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. 2008 turbotax download   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. 2008 turbotax download Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. 2008 turbotax download   Your employer is responsible for withholding the 0. 2008 turbotax download 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. 2008 turbotax download If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. 2008 turbotax download   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). 2008 turbotax download    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 2008 turbotax download For more information on Additional Medicare Tax, go to IRS. 2008 turbotax download gov and enter “Additional Medicare Tax” in the search box. 2008 turbotax download   Self-employed individuals may also be required to pay Additional Medicare Tax. 2008 turbotax download See Self-Employment Tax , later. 2008 turbotax download Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. 2008 turbotax download This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. 2008 turbotax download These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. 2008 turbotax download Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. 2008 turbotax download Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. 2008 turbotax download Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. 2008 turbotax download In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. 2008 turbotax download Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. 2008 turbotax download Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. 2008 turbotax download The U. 2008 turbotax download S. 2008 turbotax download Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. 2008 turbotax download S. 2008 turbotax download resident. 2008 turbotax download On-campus work means work performed on the school's premises. 2008 turbotax download On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. 2008 turbotax download On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. 2008 turbotax download Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. 2008 turbotax download If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. 2008 turbotax download Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. 2008 turbotax download Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. 2008 turbotax download If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. 2008 turbotax download Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. 2008 turbotax download The employer must be the petitioner through whom the alien obtained the “Q” visa. 2008 turbotax download Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. 2008 turbotax download Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. 2008 turbotax download If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. 2008 turbotax download Attach the following items to Form 843. 2008 turbotax download A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. 2008 turbotax download A copy of your visa. 2008 turbotax download Form I-94 (or other documentation showing your dates of arrival or departure). 2008 turbotax download If you have an F-1 visa, documentation showing permission to work in the U. 2008 turbotax download S. 2008 turbotax download If you have a J-1 visa, documentation showing permission to work in the U. 2008 turbotax download S. 2008 turbotax download If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. 2008 turbotax download S. 2008 turbotax download A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. 2008 turbotax download If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. 2008 turbotax download If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. 2008 turbotax download File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. 2008 turbotax download Do not use Form 843 to request a refund of Additional Medicare Tax. 2008 turbotax download If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. 2008 turbotax download If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. 2008 turbotax download S. 2008 turbotax download Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. 2008 turbotax download See the Instructions for Form 1040X. 2008 turbotax download Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. 2008 turbotax download You can find more information about not having tax withheld at www. 2008 turbotax download irs. 2008 turbotax download gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. 2008 turbotax download Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. 2008 turbotax download Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. 2008 turbotax download S. 2008 turbotax download social security system. 2008 turbotax download Residents of the U. 2008 turbotax download S. 2008 turbotax download Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. 2008 turbotax download S. 2008 turbotax download residents for this purpose and are subject to the self-employment tax. 2008 turbotax download Resident aliens must pay self-employment tax under the same rules that apply to U. 2008 turbotax download S. 2008 turbotax download citizens. 2008 turbotax download However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. 2008 turbotax download Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. 2008 turbotax download Example. 2008 turbotax download Bill Jones is an author engaged in the business of writing books. 2008 turbotax download Bill had several books published in a foreign country while he was a citizen and resident of that country. 2008 turbotax download During 2013, Bill entered the United States as a resident alien. 2008 turbotax download After becoming a U. 2008 turbotax download S. 2008 turbotax download resident, he continued to receive royalties from his foreign publisher. 2008 turbotax download Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). 2008 turbotax download Bill's 2013 self-employment income includes the royalties received after he became a U. 2008 turbotax download S. 2008 turbotax download resident even though the books were published while he was a nonresident alien. 2008 turbotax download This royalty income is subject to self-employment tax. 2008 turbotax download Reporting self-employment tax. 2008 turbotax download   Use Schedule SE (Form 1040) to report and figure your self-employment tax. 2008 turbotax download Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. 2008 turbotax download Attach Schedule SE to Form 1040 or Form 1040NR. 2008 turbotax download Additional Medicare Tax. 2008 turbotax download   Self-employed individuals must pay a 0. 2008 turbotax download 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. 2008 turbotax download   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. 2008 turbotax download A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). 2008 turbotax download   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. 2008 turbotax download For more information on Additional Medicare Tax, go to IRS. 2008 turbotax download gov and enter “Additional Medicare Tax” in the search box. 2008 turbotax download Deduction for employer-equivalent portion of self-employment tax. 2008 turbotax download   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. 2008 turbotax download This deduction is figured on Schedule SE (Form 1040). 2008 turbotax download Note. 2008 turbotax download No portion of the Additional Medicare Tax is deductible for self-employment tax. 2008 turbotax download More information. 2008 turbotax download   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. 2008 turbotax download International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. 2008 turbotax download These agreements are commonly referred to as totalization agreements. 2008 turbotax download Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. 2008 turbotax download The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. 2008 turbotax download Agreements are in effect with the following countries. 2008 turbotax download Australia. 2008 turbotax download Austria. 2008 turbotax download Belgium. 2008 turbotax download Canada. 2008 turbotax download Chile. 2008 turbotax download Czech Republic. 2008 turbotax download Denmark. 2008 turbotax download Finland. 2008 turbotax download France. 2008 turbotax download Germany. 2008 turbotax download Greece. 2008 turbotax download Ireland. 2008 turbotax download Italy. 2008 turbotax download Japan. 2008 turbotax download Korea, South. 2008 turbotax download Luxembourg. 2008 turbotax download The Netherlands. 2008 turbotax download Norway. 2008 turbotax download Poland. 2008 turbotax download Portugal. 2008 turbotax download Spain. 2008 turbotax download Sweden. 2008 turbotax download Switzerland. 2008 turbotax download The United Kingdom. 2008 turbotax download Agreements with other countries are expected to enter into force in the future. 2008 turbotax download Employees. 2008 turbotax download   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. 2008 turbotax download However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. 2008 turbotax download You can get more information on any agreement by contacting the U. 2008 turbotax download S. 2008 turbotax download Social Security Administration at the address given later. 2008 turbotax download If you have access to the Internet, you can get more information at www. 2008 turbotax download socialsecurity. 2008 turbotax download gov/international. 2008 turbotax download   To establish that your pay is subject only to foreign social security taxes and is exempt from U. 2008 turbotax download S. 2008 turbotax download social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. 2008 turbotax download This will usually be the same agency to which you or your employer pays your foreign social security taxes. 2008 turbotax download The foreign agency will be able to tell you what information is needed for them to issue the certificate. 2008 turbotax download Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. 2008 turbotax download S. 2008 turbotax download social security taxes. 2008 turbotax download Only wages paid on or after the effective date of the agreement can be exempt from U. 2008 turbotax download S. 2008 turbotax download social security taxes. 2008 turbotax download    Some of the countries with which the United States has agreements will not issue certificates of coverage. 2008 turbotax download In this case, either you or your employer should request a statement that your wages are not covered by the U. 2008 turbotax download S. 2008 turbotax download social security system. 2008 turbotax download Request the statement from the following address. 2008 turbotax download U. 2008 turbotax download S. 2008 turbotax download Social Security Administration Office of International Programs P. 2008 turbotax download O. 2008 turbotax download Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. 2008 turbotax download   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. 2008 turbotax download However, under some agreements, you may be exempt from U. 2008 turbotax download S. 2008 turbotax download self-employment tax if you temporarily transfer your business activity to or from the United States. 2008 turbotax download   If you believe that your self-employment income is subject only to U. 2008 turbotax download S. 2008 turbotax download self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. 2008 turbotax download S. 2008 turbotax download Social Security Administration at the address given earlier. 2008 turbotax download This certificate will establish your exemption from foreign social security taxes. 2008 turbotax download   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. 2008 turbotax download S. 2008 turbotax download self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. 2008 turbotax download If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. 2008 turbotax download S. 2008 turbotax download social security system. 2008 turbotax download Request it from the U. 2008 turbotax download S. 2008 turbotax download Social Security Administration at the address given earlier. 2008 turbotax download Attach a photocopy of either statement to Form 1040 each year you are exempt. 2008 turbotax download Also print “Exempt, see attached statement” on the line for self-employment tax. 2008 turbotax download Estimated Tax Form 1040-ES (NR) You may have income from which no U. 2008 turbotax download S. 2008 turbotax download income tax is withheld. 2008 turbotax download Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. 2008 turbotax download If so, you may have to pay estimated tax. 2008 turbotax download Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). 2008 turbotax download If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. 2008 turbotax download Item (2) does not apply if you did not file a 2013 return. 2008 turbotax download A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. 2008 turbotax download If you pay by check, make it payable to the "United States Treasury. 2008 turbotax download " How to estimate your tax for 2014. 2008 turbotax download   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. 2008 turbotax download If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. 2008 turbotax download Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. 2008 turbotax download Note. 2008 turbotax download If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). 2008 turbotax download When to pay estimated tax. 2008 turbotax download   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. 2008 turbotax download If you have wages subject to the same withholding rules that apply to U. 2008 turbotax download S. 2008 turbotax download citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. 2008 turbotax download If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. 2008 turbotax download   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. 2008 turbotax download 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. 2008 turbotax download 15, 2014 4th installment Jan. 2008 turbotax download 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. 2008 turbotax download    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. 2008 turbotax download Fiscal year. 2008 turbotax download   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. 2008 turbotax download If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. 2008 turbotax download Changes in income, deductions, or exemptions. 2008 turbotax download   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. 2008 turbotax download This can happen if you receive additional income or if any of your deductions are reduced or eliminated. 2008 turbotax download If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. 2008 turbotax download Amended estimated tax. 2008 turbotax download   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. 2008 turbotax download To do this, see the instructions for Form 1040-ES (NR) and Publication 505. 2008 turbotax download Penalty for failure to pay estimated income tax. 2008 turbotax download   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. 2008 turbotax download These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. 2008 turbotax download Prev  Up  Next   Home   More Online Publications
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2008 turbotax download Publication 915 - Main Content Table of Contents Are Any of Your Benefits Taxable?Worksheet A. 2008 turbotax download Exemption from withholding. 2008 turbotax download 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. 2008 turbotax download When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Children's benefits. 2008 turbotax download   The rules in this publication apply to benefits received by children. 2008 turbotax download See Who is taxed , later. 2008 turbotax download The SSA issues Form SSA-1099 and Form SSA-1042S. 2008 turbotax download The RRB issues Form RRB-1099 and Form RRB-1042S. 2008 turbotax download These forms (tax statements) report the amounts paid and repaid, and taxes withheld for a tax year. 2008 turbotax download You may receive more than one of these forms for the same tax year. 2008 turbotax download See the Appendix at the end of this publication for more information. 2008 turbotax download Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. 2008 turbotax download The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is an error in the original. 2008 turbotax download 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. 2008 turbotax download 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. 2008 turbotax download Figuring total income. 2008 turbotax download   To figure the total of one-half of your benefits plus your other income, use Worksheet A, discussed later. 2008 turbotax download If the total is more than your base amount, part of your benefits may be taxable. 2008 turbotax download   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. 2008 turbotax download 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. 2008 turbotax download 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. 2008 turbotax download If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. 2008 turbotax download Base amount. 2008 turbotax download   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. 2008 turbotax download Worksheet A. 2008 turbotax download   You can use Worksheet A to figure the amount of income to compare with your base amount. 2008 turbotax download This is a quick way to check whether some of your benefits may be taxable. 2008 turbotax download     Worksheet A. 2008 turbotax download A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. 2008 turbotax download Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2008 turbotax download Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. 2008 turbotax download (If you received more than one form, combine the amounts from box 5 and enter the total. 2008 turbotax download ) A. 2008 turbotax download   Note. 2008 turbotax download If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. 2008 turbotax download B. 2008 turbotax download Enter one-half of the amount on line A B. 2008 turbotax download   C. 2008 turbotax download Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2008 turbotax download   D. 2008 turbotax download Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. 2008 turbotax download   E. 2008 turbotax download Add lines B, C, and D E. 2008 turbotax download   Note. 2008 turbotax download Compare the amount on line E to your base amount for your filing status. 2008 turbotax download 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. 2008 turbotax download If the amount on line E is more than your base amount, some of your benefits may be taxable. 2008 turbotax download You need to complete Worksheet 1, shown later. 2008 turbotax download 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 . 2008 turbotax download   Example. 2008 turbotax download You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. 2008 turbotax download In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. 2008 turbotax download Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. 2008 turbotax download You also received a taxable pension of $22,800 and interest income of $500. 2008 turbotax download You did not have any tax-exempt interest income. 2008 turbotax download 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. 2008 turbotax download   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. 2008 turbotax download     Filled-in Worksheet A. 2008 turbotax download A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. 2008 turbotax download Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. 2008 turbotax download Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. 2008 turbotax download (If you received more than one form, combine the amounts from box 5 and enter the total. 2008 turbotax download ) A. 2008 turbotax download $11,000 Note. 2008 turbotax download If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. 2008 turbotax download B. 2008 turbotax download Enter one-half of the amount on line A B. 2008 turbotax download 5,500 C. 2008 turbotax download Enter your taxable pensions, wages, interest, dividends, and other taxable income C. 2008 turbotax download 23,300 D. 2008 turbotax download Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. 2008 turbotax download -0- E. 2008 turbotax download Add lines B, C, and D E. 2008 turbotax download $28,800 Note. 2008 turbotax download Compare the amount on line E to your base amount for your filing status. 2008 turbotax download 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. 2008 turbotax download If the amount on line E is more than your base amount, some of your benefits may be taxable. 2008 turbotax download You need to complete Worksheet 1, shown later. 2008 turbotax download 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 . 2008 turbotax download   Who is taxed. 2008 turbotax download   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. 2008 turbotax download 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. 2008 turbotax download 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. 2008 turbotax download Repayment of benefits. 2008 turbotax download   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. 2008 turbotax download It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. 2008 turbotax download If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. 2008 turbotax download   Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. 2008 turbotax download Your repayments are shown in box 4. 2008 turbotax download The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). 2008 turbotax download Use the amount in box 5 to figure whether any of your benefits are taxable. 2008 turbotax download Example. 2008 turbotax download In 2012, you received $3,000 in social security benefits, and in 2013 you received $2,700. 2008 turbotax download In March 2013, SSA notified you that you should have received only $2,500 in benefits in 2012. 2008 turbotax download During 2013, you repaid $500 to SSA. 2008 turbotax download The Form SSA-1099 you received for 2013 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). 2008 turbotax download The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500). 2008 turbotax download Tax withholding and estimated tax. 2008 turbotax download   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. 2008 turbotax download If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Statement. 2008 turbotax download   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. 2008 turbotax download For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. 2008 turbotax download U. 2008 turbotax download S. 2008 turbotax download citizens residing abroad. 2008 turbotax download   U. 2008 turbotax download S. 2008 turbotax download citizens who are residents of the following countries are exempt from U. 2008 turbotax download S. 2008 turbotax download tax on their benefits. 2008 turbotax download Canada. 2008 turbotax download Egypt. 2008 turbotax download Germany. 2008 turbotax download Ireland. 2008 turbotax download Israel. 2008 turbotax download Italy. 2008 turbotax download (You must also be a citizen of Italy for the exemption to apply. 2008 turbotax download ) Romania. 2008 turbotax download United Kingdom. 2008 turbotax download   The SSA will not withhold U. 2008 turbotax download S. 2008 turbotax download tax from your benefits if you are a U. 2008 turbotax download S. 2008 turbotax download citizen. 2008 turbotax download   The RRB will withhold U. 2008 turbotax download S. 2008 turbotax download tax from your benefits unless you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency information. 2008 turbotax download 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. 2008 turbotax download Contact the RRB to get this form. 2008 turbotax download Lawful permanent residents. 2008 turbotax download   For U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Social security benefits paid to a green card holder are not subject to 30% withholding. 2008 turbotax download 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. 2008 turbotax download SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. 2008 turbotax download 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. 2008 turbotax download 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. 2008 turbotax download S. 2008 turbotax download lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. 2008 turbotax download I am filing a U. 2008 turbotax download S. 2008 turbotax download income tax return for the tax year as a resident alien reporting all of my worldwide income. 2008 turbotax download I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien. 2008 turbotax download ” Nonresident aliens. 2008 turbotax download   A nonresident alien is an individual who is not a citizen or resident of the United States. 2008 turbotax download If you are a nonresident alien, the rules discussed in this publication do not apply to you. 2008 turbotax download Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. 2008 turbotax download You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. 2008 turbotax download These forms will also show the tax rate and the amount of tax withheld from your benefits. 2008 turbotax download   Under tax treaties with the following countries, residents of these countries are exempt from U. 2008 turbotax download S. 2008 turbotax download tax on their benefits. 2008 turbotax download Canada. 2008 turbotax download Egypt. 2008 turbotax download Germany. 2008 turbotax download Ireland. 2008 turbotax download Israel. 2008 turbotax download Italy. 2008 turbotax download Japan. 2008 turbotax download Romania. 2008 turbotax download United Kingdom. 2008 turbotax download   Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U. 2008 turbotax download S. 2008 turbotax download tax if the benefits are for services performed for the United States, its subdivisions, or local government authorities. 2008 turbotax download   If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate. 2008 turbotax download   For more information on whether you are a nonresident alien, see Publication 519, U. 2008 turbotax download S. 2008 turbotax download Tax Guide for Aliens. 2008 turbotax download Exemption from withholding. 2008 turbotax download   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. 2008 turbotax download S. 2008 turbotax download tax from your benefits. 2008 turbotax download   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. 2008 turbotax download Contact the RRB to get this form. 2008 turbotax download Canadian or German social security benefits paid to U. 2008 turbotax download S. 2008 turbotax download residents. 2008 turbotax download   Under income tax treaties with Canada and Germany, social security benefits paid by those countries to U. 2008 turbotax download S. 2008 turbotax download residents are treated for U. 2008 turbotax download S. 2008 turbotax download income tax purposes as if they were paid under the social security legislation of the United States. 2008 turbotax download If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1, shown later. 2008 turbotax download How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. 2008 turbotax download You cannot use Form 1040EZ. 2008 turbotax download Reporting on Form 1040. 2008 turbotax download   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. 2008 turbotax download 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. 2008 turbotax download Reporting on Form 1040A. 2008 turbotax download   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. 2008 turbotax download 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. 2008 turbotax download Benefits not taxable. 2008 turbotax download   If you are filing Form 1040EZ, do not report any benefits on your tax return. 2008 turbotax download 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. 2008 turbotax download Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download 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. 2008 turbotax download Generally, the higher that total amount, the greater the taxable part of your benefits. 2008 turbotax download Maximum taxable part. 2008 turbotax download   Generally, up to 50% of your benefits will be taxable. 2008 turbotax download However, up to 85% of your benefits can be taxable if either of the following situations applies to you. 2008 turbotax download 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). 2008 turbotax download You are married filing separately and lived with your spouse at any time during 2013. 2008 turbotax download Which worksheet to use. 2008 turbotax download   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. 2008 turbotax download You can use either that worksheet or Worksheet 1 in this publication, unless any of the following situations applies to you. 2008 turbotax download You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. 2008 turbotax download 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. 2008 turbotax download Situation (1) does not apply and you take an exclusion for interest from qualified U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download In this situation, you must use Worksheet 1 in this publication to figure your taxable benefits. 2008 turbotax download You received a lump-sum payment for an earlier year. 2008 turbotax download In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in this publication. 2008 turbotax download See Lump-Sum Election , later. 2008 turbotax download Examples A few examples you can use as a guide to figure the taxable part of your benefits follow. 2008 turbotax download Filled-in Worksheet 1. 2008 turbotax download 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. 2008 turbotax download 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). 2008 turbotax download None of your benefits are taxable for 2013. 2008 turbotax download For more information, see Repayments More Than Gross Benefits . 2008 turbotax download If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2008 turbotax download 1. 2008 turbotax download Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2008 turbotax download Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2008 turbotax download $5,980         2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download 2,990     3. 2008 turbotax download 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. 2008 turbotax download 28,990     4. 2008 turbotax download Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2008 turbotax download -0-     5. 2008 turbotax download 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. 2008 turbotax download -0-     6. 2008 turbotax download Combine lines 2, 3, 4, and 5 6. 2008 turbotax download 31,980     7. 2008 turbotax download 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. 2008 turbotax download  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2008 turbotax download -0-     8. 2008 turbotax download Is the amount on line 7 less than the amount on line 6?             No. 2008 turbotax download None of your social security benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download 31,980     9. 2008 turbotax download 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. 2008 turbotax download 25,000       Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 9 less than the amount on line 8?             No. 2008 turbotax download None of your benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download 6,980     11. 2008 turbotax download 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. 2008 turbotax download 9,000     12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download -0-     13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download 6,980     14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download 3,490     15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download 2,990     16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download -0-     17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download 2,990     18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download 5,083     19. 2008 turbotax download Taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18. 2008 turbotax download Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2008 turbotax download $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. 2008 turbotax download         Example 1. 2008 turbotax download George White is single and files Form 1040 for 2013. 2008 turbotax download 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. 2008 turbotax download He received a Form SSA-1099 in January 2014 that shows his net social security benefits of $5,980 in box 5. 2008 turbotax download   To figure his taxable benefits, George completes Worksheet 1, shown below. 2008 turbotax download On line 20a of his Form 1040, George enters his net benefits of $5,980. 2008 turbotax download On line 20b, he enters his taxable benefits of $2,990. 2008 turbotax download Example 2. 2008 turbotax download Ray and Alice Hopkins file a joint return on Form 1040A for 2013. 2008 turbotax download Ray is retired and received a fully taxable pension of $15,500. 2008 turbotax download He also received social security benefits and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. 2008 turbotax download Alice worked during the year and had wages of $14,000. 2008 turbotax download She made a deductible payment to her IRA account of $1,000. 2008 turbotax download Ray and Alice have two savings accounts with a total of $250 in taxable interest income. 2008 turbotax download They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. 2008 turbotax download They find none of Ray's social security benefits are taxable. 2008 turbotax download On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. 2008 turbotax download Filled-in Worksheet 1. 2008 turbotax download 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. 2008 turbotax download 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). 2008 turbotax download None of your benefits are taxable for 2013. 2008 turbotax download For more information, see Repayments More Than Gross Benefits . 2008 turbotax download If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2008 turbotax download 1. 2008 turbotax download Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2008 turbotax download Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2008 turbotax download $5,600         2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download 2,800     3. 2008 turbotax download 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. 2008 turbotax download 29,750     4. 2008 turbotax download Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2008 turbotax download -0-     5. 2008 turbotax download 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. 2008 turbotax download -0-     6. 2008 turbotax download Combine lines 2, 3, 4, and 5 6. 2008 turbotax download 32,550     7. 2008 turbotax download 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. 2008 turbotax download  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2008 turbotax download 1,000     8. 2008 turbotax download Is the amount on line 7 less than the amount on line 6?             No. 2008 turbotax download None of your social security benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download 31,550     9. 2008 turbotax download 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. 2008 turbotax download 32,000       Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 9 less than the amount on line 8?             No. 2008 turbotax download None of your benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download       11. 2008 turbotax download 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. 2008 turbotax download       12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download       13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download       14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download       15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download       16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download       17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download       18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download       19. 2008 turbotax download Taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18. 2008 turbotax download Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2008 turbotax download         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. 2008 turbotax download         Example 3. 2008 turbotax download Joe and Betty Johnson file a joint return on Form 1040 for 2013. 2008 turbotax download Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. 2008 turbotax download Joe's Form RRB-1099 shows $10,000 in box 5. 2008 turbotax download Betty is a retired government worker and received a fully taxable pension of $38,000. 2008 turbotax download They had $2,300 in taxable interest income plus interest of $200 on a qualified U. 2008 turbotax download S. 2008 turbotax download savings bond. 2008 turbotax download The savings bond interest qualified for the exclusion. 2008 turbotax download They figure their taxable benefits by completing Worksheet 1 below. 2008 turbotax download Because they have qualified U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). 2008 turbotax download 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. 2008 turbotax download (See Maximum taxable part under How Much Is Taxable earlier. 2008 turbotax download ) Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. 2008 turbotax download Filled-in Worksheet 1. 2008 turbotax download 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. 2008 turbotax download 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). 2008 turbotax download None of your benefits are taxable for 2013. 2008 turbotax download For more information, see Repayments More Than Gross Benefits . 2008 turbotax download If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2008 turbotax download 1. 2008 turbotax download Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2008 turbotax download Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2008 turbotax download $10,000         2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download 5,000     3. 2008 turbotax download 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. 2008 turbotax download 40,500     4. 2008 turbotax download Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2008 turbotax download -0-     5. 2008 turbotax download 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. 2008 turbotax download -0-     6. 2008 turbotax download Combine lines 2, 3, 4, and 5 6. 2008 turbotax download 45,500     7. 2008 turbotax download 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. 2008 turbotax download  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2008 turbotax download -0-     8. 2008 turbotax download Is the amount on line 7 less than the amount on line 6?             No. 2008 turbotax download None of your social security benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download 45,500     9. 2008 turbotax download 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. 2008 turbotax download 32,000       Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 9 less than the amount on line 8?             No. 2008 turbotax download None of your benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download 13,500     11. 2008 turbotax download 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. 2008 turbotax download 12,000     12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download 1,500     13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download 12,000     14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download 6,000     15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download 5,000     16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download 1,275     17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download 6,275     18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download 8,500     19. 2008 turbotax download Taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18. 2008 turbotax download Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2008 turbotax download $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. 2008 turbotax download         Filled-in Worksheet 1. 2008 turbotax download 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. 2008 turbotax download 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). 2008 turbotax download None of your benefits are taxable for 2013. 2008 turbotax download For more information, see Repayments More Than Gross Benefits . 2008 turbotax download If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2008 turbotax download 1. 2008 turbotax download Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2008 turbotax download Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2008 turbotax download $4,000         2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download 2,000     3. 2008 turbotax download 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. 2008 turbotax download 8,000     4. 2008 turbotax download Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2008 turbotax download -0-     5. 2008 turbotax download 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. 2008 turbotax download -0-     6. 2008 turbotax download Combine lines 2, 3, 4, and 5 6. 2008 turbotax download 10,000     7. 2008 turbotax download 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. 2008 turbotax download  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2008 turbotax download -0-     8. 2008 turbotax download Is the amount on line 7 less than the amount on line 6?             No. 2008 turbotax download None of your social security benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download 10,000     9. 2008 turbotax download 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. 2008 turbotax download         Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 9 less than the amount on line 8?             No. 2008 turbotax download None of your benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download       11. 2008 turbotax download 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. 2008 turbotax download       12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download       13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download       14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download       15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download       16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download       17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download 8,500     18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download 3,400     19. 2008 turbotax download Taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18. 2008 turbotax download Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2008 turbotax download $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. 2008 turbotax download         Example 4. 2008 turbotax download Bill and Eileen Jones are married and live together, but file separate Form 1040 returns for 2013. 2008 turbotax download Bill earned $8,000 during 2013. 2008 turbotax download The only other income he had for the year was $4,000 net social security benefits (box 5 of his Form SSA-1099). 2008 turbotax download Bill figures his taxable benefits by completing Worksheet 1 below. 2008 turbotax download 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. 2008 turbotax download See How Much Is Taxable earlier. 2008 turbotax download Bill enters $4,000 on his Form 1040, line 20a, and $3,400 on Form 1040, line 20b. 2008 turbotax download 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. 2008 turbotax download 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. 2008 turbotax download No part of the lump-sum death benefit is subject to tax. 2008 turbotax download Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. 2008 turbotax download 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. 2008 turbotax download You can elect this method if it lowers your taxable benefits. 2008 turbotax download 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. 2008 turbotax download Then you subtract any taxable benefits for that year that you previously reported. 2008 turbotax download The remainder is the taxable part of the lump-sum payment. 2008 turbotax download Add it to the taxable part of your benefits for 2013 (figured without the lump-sum payment for the earlier year). 2008 turbotax download Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. 2008 turbotax download Do not file an amended return for the earlier year. 2008 turbotax download Will the lump-sum election method lower your taxable benefits?   To find out, take the following steps. 2008 turbotax download Complete Worksheet 1 in this publication. 2008 turbotax download Complete Worksheet 2 and Worksheet 3 as appropriate. 2008 turbotax download Use Worksheet 2 if your lump-sum payment was for a year after 1993. 2008 turbotax download Use Worksheet 3 if it was for 1993 or an earlier year. 2008 turbotax download Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received the lump-sum payment. 2008 turbotax download Complete Worksheet 4. 2008 turbotax download Compare the taxable benefits on line 19 of Worksheet 1 with the taxable benefits on line 21 of Worksheet 4. 2008 turbotax download 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. 2008 turbotax download Making the election. 2008 turbotax download   If you elect to report your taxable benefits under the lump-sum election method, follow the instructions at the bottom of Worksheet 4. 2008 turbotax download Do not attach the completed worksheets to your return. 2008 turbotax download Keep them with your records. 2008 turbotax download    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. 2008 turbotax download Lump-sum payment reported on Form SSA-1099 or RRB-1099. 2008 turbotax download   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. 2008 turbotax download That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. 2008 turbotax download The form will also show the year (or years) the payment is for. 2008 turbotax download However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2011. 2008 turbotax download You must contact the RRB for a breakdown by year for any amount shown in box 9. 2008 turbotax download Example Jane Jackson is single. 2008 turbotax download In 2012 she applied for social security disability benefits but was told she was ineligible. 2008 turbotax download She appealed the decision and won. 2008 turbotax download In 2013, she received a lump-sum payment of $6,000, of which $2,000 was for 2012 and $4,000 was for 2013. 2008 turbotax download Jane also received $5,000 in social security benefits in 2013, so her total benefits in 2013 were $11,000. 2008 turbotax download Jane's other income for 2012 and 2013 is as follows. 2008 turbotax download   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. 2008 turbotax download She does not need to complete Worksheet 3 because her lump-sum payment was for years after 1993. 2008 turbotax download Jane completes Worksheet 1 to find the amount of her taxable benefits for 2013 under the regular method. 2008 turbotax download She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2012 under the lump-sum election method. 2008 turbotax download She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits. 2008 turbotax download After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21, and Worksheet 1, line 19. 2008 turbotax download Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. 2008 turbotax download To do this, she prints “LSE” to the left of Form 1040, line 20a. 2008 turbotax download She then enters $11,000 on Form 1040, line 20a, and her taxable benefits of $2,500 on line 20b. 2008 turbotax download Jane's filled-in worksheets (1, 2, and 4) follow. 2008 turbotax download Jane Jackson's Filled-in Worksheet 1. 2008 turbotax download 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. 2008 turbotax download 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). 2008 turbotax download None of your benefits are taxable for 2013. 2008 turbotax download For more information, see Repayments More Than Gross Benefits . 2008 turbotax download If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2008 turbotax download 1. 2008 turbotax download Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2008 turbotax download Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2008 turbotax download $11,000         2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download 5,500     3. 2008 turbotax download 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. 2008 turbotax download 25,500     4. 2008 turbotax download Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2008 turbotax download -0-     5. 2008 turbotax download 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. 2008 turbotax download -0-     6. 2008 turbotax download Combine lines 2, 3, 4, and 5 6. 2008 turbotax download 31,000     7. 2008 turbotax download 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. 2008 turbotax download  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2008 turbotax download -0-     8. 2008 turbotax download Is the amount on line 7 less than the amount on line 6?             No. 2008 turbotax download None of your social security benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download 31,000     9. 2008 turbotax download 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. 2008 turbotax download 25,000       Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 9 less than the amount on line 8?             No. 2008 turbotax download None of your benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download 6,000     11. 2008 turbotax download 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. 2008 turbotax download 9,000     12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download -0-     13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download 6,000     14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download 3,000     15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download 3,000     16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download -0-     17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download 3,000     18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download 9,350     19. 2008 turbotax download Taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18. 2008 turbotax download Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2008 turbotax download $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. 2008 turbotax download         Jane Jackson's Filled-in Worksheet 2. 2008 turbotax download Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 2012 1. 2008 turbotax download 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. 2008 turbotax download $2,000           Note. 2008 turbotax download If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. 2008 turbotax download Otherwise, go on to line 2. 2008 turbotax download             2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download 1,000   3. 2008 turbotax download Enter your adjusted gross income for the earlier year 3. 2008 turbotax download 23,000   4. 2008 turbotax download Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download -0-   5. 2008 turbotax download Enter any tax-exempt interest received in the earlier year 5. 2008 turbotax download -0-   6. 2008 turbotax download Add lines 2 through 5 6. 2008 turbotax download 24,000   7. 2008 turbotax download Enter your taxable benefits for the earlier year that you previously reported 7. 2008 turbotax download -0-   8. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download 24,000   9. 2008 turbotax download 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. 2008 turbotax download 25,000     Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 8 more than the amount on line 9?       No. 2008 turbotax download Skip lines 10 through 20 and enter -0- on line 21. 2008 turbotax download       Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download     11. 2008 turbotax download 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. 2008 turbotax download     12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download     13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download     14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download     15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download     16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download     17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download     18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download     19. 2008 turbotax download Refigured taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18 19. 2008 turbotax download     20. 2008 turbotax download Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. 2008 turbotax download     21. 2008 turbotax download Additional taxable benefits. 2008 turbotax download Subtract line 20 from line 19. 2008 turbotax download Also enter this amount on Worksheet 4, line 20 21. 2008 turbotax download -0-     Do not file an amended return for this earlier year. 2008 turbotax download Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. 2008 turbotax download   Jane Jackson's Filled-in Worksheet 4. 2008 turbotax download 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. 2008 turbotax download 1. 2008 turbotax download 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. 2008 turbotax download $9,000         Note. 2008 turbotax download If line 1 is zero or less, skip lines 2 through 18, enter -0- on line 19 and go to line 20. 2008 turbotax download Otherwise, go on to line 2. 2008 turbotax download           2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download 4,500   3. 2008 turbotax download Enter the amount from Worksheet 1, line 3 3. 2008 turbotax download 25,500   4. 2008 turbotax download Enter the amount from Worksheet 1, line 4 4. 2008 turbotax download -0-   5. 2008 turbotax download Enter the amount from Worksheet 1, line 5 5. 2008 turbotax download -0-   6. 2008 turbotax download Combine lines 2, 3, 4, and 5 6. 2008 turbotax download 30,000   7. 2008 turbotax download Enter the amount from Worksheet 1, line 7 7. 2008 turbotax download -0-   8. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download 30,000   9. 2008 turbotax download Enter the amount from Worksheet 1, line 9. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then, go to line 18 9. 2008 turbotax download 25,000   10. 2008 turbotax download Is the amount on line 8 more than the amount on line 9? No. 2008 turbotax download Skip lines 10 through 18, enter -0- on line 19, and go to line 20. 2008 turbotax download  Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download 5,000   11. 2008 turbotax download Enter the amount from Worksheet 1, line 11 11. 2008 turbotax download 9,000   12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download -0-   13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download 5,000   14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download 2,500   15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download 2,500   16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download -0-   17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download 2,500   18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download 7,650   19. 2008 turbotax download Enter the smaller of line 17 or line 18 19. 2008 turbotax download 2,500   20. 2008 turbotax download 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. 2008 turbotax download -0-   21. 2008 turbotax download Taxable benefits under lump-sum election method. 2008 turbotax download Add lines 19 and 20 21. 2008 turbotax download $2,500   Next. 2008 turbotax download Is line 21 above smaller than Worksheet 1, line 19? No. 2008 turbotax download Do not use this method to figure your taxable benefits. 2008 turbotax download Follow the instructions on Worksheet 1 to report your benefits. 2008 turbotax download  Yes. 2008 turbotax download You can elect to report your taxable benefits under this method. 2008 turbotax download To elect this method:     Enter “LSE” to the left of Form 1040, line 20a, or Form 1040A, line 14a. 2008 turbotax download If line 21 above is zero, follow the instructions in line 10 for “No” on Worksheet 1. 2008 turbotax download Otherwise: Enter the amount from Worksheet 1, line 1, on Form 1040, line 20a, or on Form 1040A, line 14a. 2008 turbotax download Enter the amount from line 21 above on Form 1040, line 20b, or on Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download   Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. 2008 turbotax download Disability payments. 2008 turbotax download   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. 2008 turbotax download 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. 2008 turbotax download If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. 2008 turbotax download 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. 2008 turbotax download Legal expenses. 2008 turbotax download   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. 2008 turbotax download   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. 2008 turbotax download 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. 2008 turbotax download 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. 2008 turbotax download Do not use Worksheet 1 in this case. 2008 turbotax download 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. 2008 turbotax download If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. 2008 turbotax download Joint return. 2008 turbotax download   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. 2008 turbotax download You do this to get your net benefits when figuring if your combined benefits are taxable. 2008 turbotax download Example. 2008 turbotax download John and Mary file a joint return for 2013. 2008 turbotax download John received Form SSA-1099 showing $3,000 in box 5. 2008 turbotax download Mary also received Form SSA-1099 and the amount in box 5 was ($500). 2008 turbotax download 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. 2008 turbotax download Repayment of benefits received in an earlier year. 2008 turbotax download   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. 2008 turbotax download Deduction $3,000 or less. 2008 turbotax download   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. 2008 turbotax download Claim it on Schedule A (Form 1040), line 23. 2008 turbotax download Deduction more than $3,000. 2008 turbotax download   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. 2008 turbotax download Figure your tax for 2013 in the following steps: Figure the tax without the itemized deduction included on Schedule A, line 28. 2008 turbotax download 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. 2008 turbotax download Then refigure the tax for that year. 2008 turbotax download Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. 2008 turbotax download Subtract the result in (c) from the result in (a). 2008 turbotax download   Compare the tax figured in methods (1) and (2). 2008 turbotax download Your tax for 2013 is the smaller of the two amounts. 2008 turbotax download If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. 2008 turbotax download If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. 2008 turbotax download Check box d and enter “I. 2008 turbotax download R. 2008 turbotax download C. 2008 turbotax download 1341” in the space next to that box. 2008 turbotax download If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. 2008 turbotax download 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). 2008 turbotax download Worksheet 1. 2008 turbotax download 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. 2008 turbotax download 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). 2008 turbotax download None of your benefits are taxable for 2013. 2008 turbotax download For more information, see Repayments More Than Gross Benefits . 2008 turbotax download If you are filing Form 8815, Exclusion of Interest From Series EE and I U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. 2008 turbotax download 1. 2008 turbotax download Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. 2008 turbotax download Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. 2008 turbotax download           2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download       3. 2008 turbotax download 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. 2008 turbotax download       4. 2008 turbotax download Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. 2008 turbotax download       5. 2008 turbotax download 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. 2008 turbotax download       6. 2008 turbotax download Combine lines 2, 3, 4, and 5 6. 2008 turbotax download       7. 2008 turbotax download 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. 2008 turbotax download  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. 2008 turbotax download       8. 2008 turbotax download Is the amount on line 7 less than the amount on line 6?             No. 2008 turbotax download None of your social security benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download       9. 2008 turbotax download 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. 2008 turbotax download         Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 9 less than the amount on line 8?             No. 2008 turbotax download None of your benefits are taxable. 2008 turbotax download Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. 2008 turbotax download 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. 2008 turbotax download             Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download       11. 2008 turbotax download 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. 2008 turbotax download       12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download       13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download       14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download       15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download       16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download       17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download       18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download       19. 2008 turbotax download Taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18. 2008 turbotax download Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. 2008 turbotax download         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. 2008 turbotax download         Worksheet 2. 2008 turbotax download Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 1. 2008 turbotax download 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. 2008 turbotax download             Note. 2008 turbotax download If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. 2008 turbotax download Otherwise, go on to line 2. 2008 turbotax download             2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download     3. 2008 turbotax download Enter your adjusted gross income for the earlier year 3. 2008 turbotax download     4. 2008 turbotax download Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download     5. 2008 turbotax download Enter any tax-exempt interest received in the earlier year 5. 2008 turbotax download     6. 2008 turbotax download Add lines 2 through 5 6. 2008 turbotax download     7. 2008 turbotax download Enter your taxable benefits for the earlier year that you previously reported 7. 2008 turbotax download     8. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download     9. 2008 turbotax download 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. 2008 turbotax download       Note. 2008 turbotax download 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% (. 2008 turbotax download 85) and enter the result on line 17. 2008 turbotax download Then go to line 18. 2008 turbotax download         10. 2008 turbotax download Is the amount on line 8 more than the amount on line 9?       No. 2008 turbotax download Skip lines 10 through 20 and enter -0- on line 21. 2008 turbotax download       Yes. 2008 turbotax download Subtract line 9 from line 8 10. 2008 turbotax download     11. 2008 turbotax download 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. 2008 turbotax download     12. 2008 turbotax download Subtract line 11 from line 10. 2008 turbotax download If zero or less, enter -0- 12. 2008 turbotax download     13. 2008 turbotax download Enter the smaller of line 10 or line 11 13. 2008 turbotax download     14. 2008 turbotax download Enter one-half of line 13 14. 2008 turbotax download     15. 2008 turbotax download Enter the smaller of line 2 or line 14 15. 2008 turbotax download     16. 2008 turbotax download Multiply line 12 by 85% (. 2008 turbotax download 85). 2008 turbotax download If line 12 is zero, enter -0- 16. 2008 turbotax download     17. 2008 turbotax download Add lines 15 and 16 17. 2008 turbotax download     18. 2008 turbotax download Multiply line 1 by 85% (. 2008 turbotax download 85) 18. 2008 turbotax download     19. 2008 turbotax download Refigured taxable benefits. 2008 turbotax download Enter the smaller of line 17 or line 18 19. 2008 turbotax download     20. 2008 turbotax download Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. 2008 turbotax download     21. 2008 turbotax download Additional taxable benefits. 2008 turbotax download Subtract line 20 from line 19. 2008 turbotax download Also enter this amount on Worksheet 4, line 20 21. 2008 turbotax download       Do not file an amended return for this earlier year. 2008 turbotax download Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. 2008 turbotax download   Worksheet 3. 2008 turbotax download Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994) Enter earlier year 1. 2008 turbotax download 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. 2008 turbotax download           Note. 2008 turbotax download If line 1 is zero or less, skip lines 2 through 13 and enter -0- on line 14. 2008 turbotax download Otherwise, go on to line 2. 2008 turbotax download           2. 2008 turbotax download Enter one-half of line 1 2. 2008 turbotax download     3. 2008 turbotax download Enter your adjusted gross income for the earlier year 3. 2008 turbotax download     4. 2008 turbotax download Enter the total of any exclusions/adjustments you claimed in the earlier year for: Qualified U. 2008 turbotax download S. 2008 turbotax download 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. 2008 turbotax download     5. 2008 turbotax download Enter any tax-exempt interest received in the earlier year 5. 2008 turbotax download     6. 2008 turbotax download Add lines 2 through 5 6. 2008 turbotax download     7. 2008 turbotax download Enter your taxable benefits for the earlier year that you previously reported 7. 2008 turbotax download     8. 2008 turbotax download Subtract line 7 from line 6 8. 2008 turbotax download     9. 2008 turbotax download 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. 2008 turbotax download     10. 2008 turbotax download Is the amount on line 8 more than the amount on line 9? No. 2008 turbotax download Skip lines 10 through 13 and enter -0- on line 14. 2008 turbotax download  Yes. 2008 turbotax download Subtract line 9 from line 8. 2008 turbotax download 10. 2008 turbotax download     11. 2008 turbotax download Enter one-half of line 10 11. 2008 turbotax download     12. 2008 turbotax download Refigured taxable benefits. 2008 turbotax download Enter the smaller of line 2 or line 11 12. 2008 turbotax download     13. 2008 turbotax download Enter your taxable benefits for the earlier year (or as refigured due to a previous