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H&r Block At Home

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H&r Block At Home

H&r block at home 20. H&r block at home   Standard Deduction Table of Contents What's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. H&r block at home Married persons who filed separate returns. H&r block at home What's New Standard deduction increased. H&r block at home  The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2013 than it was for 2012. H&r block at home The amount depends on your filing status. H&r block at home You can use the 2013 Standard Deduction Tables in this chapter to figure your standard deduction. H&r block at home Introduction This chapter discusses the following topics. H&r block at home How to figure the amount of your standard deduction. H&r block at home The standard deduction for dependents. H&r block at home Who should itemize deductions. H&r block at home Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. H&r block at home If you have a choice, you can use the method that gives you the lower tax. H&r block at home The standard deduction is a dollar amount that reduces your taxable income. H&r block at home It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). H&r block at home The standard deduction is higher for taxpayers who: Are 65 or older, or Are blind. H&r block at home You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. H&r block at home Persons not eligible for the standard deduction. H&r block at home   Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or her return, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. H&r block at home You are considered a dual-status alien if you were both a nonresident and resident alien during the year. H&r block at home Note. H&r block at home If you are a nonresident alien who is married to a U. H&r block at home S. H&r block at home citizen or resident alien at the end of the year, you can choose to be treated as a U. H&r block at home S. H&r block at home resident. H&r block at home (See Publication 519, U. H&r block at home S. H&r block at home Tax Guide for Aliens. H&r block at home ) If you make this choice, you can take the standard deduction. H&r block at home If an exemption for you can be claimed on another person's return (such as your parents' return), your standard deduction may be limited. H&r block at home See Standard Deduction for Dependents, later. H&r block at home Standard Deduction Amount The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. H&r block at home Generally, the standard deduction amounts are adjusted each year for inflation. H&r block at home The standard deduction amounts for most people are shown in Table 20-1. H&r block at home Decedent's final return. H&r block at home   The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. H&r block at home However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. H&r block at home Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and do not itemize deductions, you are entitled to a higher standard deduction. H&r block at home You are considered 65 on the day before your 65th birthday. H&r block at home Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. H&r block at home Use Table 20-2 to figure the standard deduction amount. H&r block at home Higher Standard Deduction for Blindness If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. H&r block at home Not totally blind. H&r block at home   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is 20 degrees or less. H&r block at home   If your eye condition is not likely to improve beyond these limits, the statement should include this fact. H&r block at home You must keep the statement in your records. H&r block at home   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. H&r block at home Spouse 65 or Older or Blind You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and cannot be claimed as a dependent by another taxpayer. H&r block at home You cannot claim the higher standard deduction for an individual other than yourself and your spouse. H&r block at home Examples The following examples illustrate how to determine your standard deduction using Tables 20-1 and 20-2. H&r block at home Example 1. H&r block at home Larry, 46, and Donna, 33, are filing a joint return for 2013. H&r block at home Neither is blind, and neither can be claimed as a dependent. H&r block at home They decide not to itemize their deductions. H&r block at home They use Table 20-1. H&r block at home Their standard deduction is $12,200. H&r block at home Example 2. H&r block at home The facts are the same as in Example 1 except that Larry is blind at the end of 2013. H&r block at home Larry and Donna use Table 20-2. H&r block at home Their standard deduction is $13,400. H&r block at home Example 3. H&r block at home Bill and Lisa are filing a joint return for 2013. H&r block at home Both are over age 65. H&r block at home Neither is blind, and neither can be claimed as a dependent. H&r block at home If they do not itemize deductions, they use Table 20-2. H&r block at home Their standard deduction is $14,600. H&r block at home Standard Deduction for Dependents The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). H&r block at home However, if the individual is 65 or older or blind, the standard deduction may be higher. H&r block at home If you (or your spouse, if filing jointly) can be claimed as a dependent on someone else's return, use Table 20-3 to determine your standard deduction. H&r block at home Earned income defined. H&r block at home   Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. H&r block at home    For purposes of the standard deduction, earned income also includes any part of a scholarship or fellowship grant that you must include in your gross income. H&r block at home See Scholarships and fellowships in chapter 12 for more information on what qualifies as a scholarship or fellowship grant. H&r block at home Example 1. H&r block at home Michael is single. H&r block at home His parents can claim an exemption for him on their 2013 tax return. H&r block at home He has interest income of $780 and wages of $150. H&r block at home He has no itemized deductions. H&r block at home Michael uses Table 20-3 to find his standard deduction. H&r block at home He enters $150 (his earned income) on line 1, $500 ($150 + $350) on line 3, $1,000 (the larger of $500 and $1,000) on line 5, and $6,100 on line 6. H&r block at home His standard deduction, on line 7a, is $1,000 (the smaller of $1,000 and $6,100). H&r block at home Example 2. H&r block at home Joe, a 22-year-old full-time college student, can be claimed as a dependent on his parents' 2013 tax return. H&r block at home Joe is married and files a separate return. H&r block at home His wife does not itemize deductions on her separate return. H&r block at home Joe has $1,500 in interest income and wages of $3,800. H&r block at home He has no itemized deductions. H&r block at home Joe finds his standard deduction by using Table 20-3. H&r block at home He enters his earned income, $3,800 on line 1. H&r block at home He adds lines 1 and 2 and enters $4,150 on line 3. H&r block at home On line 5, he enters $4,150, the larger of lines 3 and 4. H&r block at home Because Joe is married filing a separate return, he enters $6,100 on line 6. H&r block at home On line 7a he enters $4,150 as his standard deduction because it is smaller than $6,100, the amount on line 6. H&r block at home Example 3. H&r block at home Amy, who is single, can be claimed as a dependent on her parents' 2013 tax return. H&r block at home She is 18 years old and blind. H&r block at home She has interest income of $1,300 and wages of $2,900. H&r block at home She has no itemized deductions. H&r block at home Amy uses Table 20-3 to find her standard deduction. H&r block at home She enters her wages of $2,900 on line 1. H&r block at home She adds lines 1 and 2 and enters $3,250 on line 3. H&r block at home On line 5, she enters $3,250, the larger of lines 3 and 4. H&r block at home Because she is single, Amy enters $6,100 on line 6. H&r block at home She enters $3,250 on line 7a. H&r block at home This is the smaller of the amounts on lines 5 and 6. H&r block at home Because she checked one box in the top part of the worksheet, she enters $1,500 on line 7b. H&r block at home She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,750 on line 7c. H&r block at home Example 4. H&r block at home Ed is single. H&r block at home His parents can claim an exemption for him on their 2013 tax return. H&r block at home He has wages of $7,000, interest income of $500, and a business loss of $3,000. H&r block at home He has no itemized deductions. H&r block at home Ed uses Table 20-3 to figure his standard deduction. H&r block at home He enters $4,000 ($7,000 - $3,000) on line 1. H&r block at home He adds lines 1 and 2 and enters $4,350 on line 3. H&r block at home On line 5 he enters $4,350, the larger of lines 3 and 4. H&r block at home Because he is single, Ed enters $6,100 on line 6. H&r block at home On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,100, the amount on line 6. H&r block at home Who Should Itemize You should itemize deductions if your total deductions are more than the standard deduction amount. H&r block at home Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . H&r block at home You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. H&r block at home You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than: $250,000 if single ($275,000 if head of household, $300,000 if married filing jointly or qualifying widow(er); or $150,000 if married filing separately). H&r block at home See chapter 29 or the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. H&r block at home When to itemize. H&r block at home   You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Do not qualify for the standard deduction, or the amount you can claim is limited, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. H&r block at home These deductions are explained in chapters 21–28. H&r block at home    If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. H&r block at home Enter the amount from Schedule A, line 29, on Form 1040, line 40. H&r block at home Electing to itemize for state tax or other purposes. H&r block at home   Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than take the standard deduction. H&r block at home You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. H&r block at home To make this election, you must check the box on line 30 of Schedule A. H&r block at home Changing your mind. H&r block at home   If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deductions and later find you should not have — you can change your return by filing Form 1040X, Amended U. H&r block at home S. H&r block at home Individual Income Tax Return. H&r block at home See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. H&r block at home Married persons who filed separate returns. H&r block at home   You can change methods of taking deductions only if you and your spouse both make the same changes. H&r block at home Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. H&r block at home    You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. H&r block at home You both must use the same method of claiming deductions. H&r block at home If one itemizes deductions, the other should itemize because he or she will not qualify for the standard deduction. H&r block at home See Persons not eligible for the standard deduction , earlier. H&r block at home 2013 Standard Deduction Tables If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you cannot take the standard deduction even if you were born before January 2, 1949, or are blind. H&r block at home Table 20-1. H&r block at home Standard Deduction Chart for Most People* If your filing status is. H&r block at home . H&r block at home . H&r block at home Your standard deduction is: Single or Married filing separately $6,100 Married filing jointly or Qualifying widow(er) with dependent child 12,200 Head of household 8,950 *Do not use this chart if you were born before January 2, 1949, are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. H&r block at home Use Table 20-2 or 20-3 instead. H&r block at home Table 20-2. H&r block at home Standard Deduction Chart for People Born Before January 2, 1949, or Who are Blind Check the correct number of boxes below. H&r block at home Then go to the chart. H&r block at home You: Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked   IF  your filing status is. H&r block at home . H&r block at home . H&r block at home AND the number in the box above is. H&r block at home . H&r block at home . H&r block at home THEN your standard deduction is. H&r block at home . H&r block at home . H&r block at home Single 1 $7,600   2 9,100 Married filing jointly 1 $13,400 or Qualifying 2 14,600 widow(er) with 3 15,800 dependent child 4 17,000 Married filing 1 $7,300 separately 2 8,500   3 9,700   4 10,900 Head of household 1 $10,450   2 11,950 *If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 20-3 instead. H&r block at home Table 20-3. H&r block at home Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent. H&r block at home Check the correct number of boxes below. H&r block at home Then go to the worksheet. H&r block at home You:   Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked 1. H&r block at home Enter your earned income (defined below). H&r block at home If none, enter -0-. H&r block at home 1. H&r block at home   2. H&r block at home Additional amount. H&r block at home 2. H&r block at home $350 3. H&r block at home Add lines 1 and 2. H&r block at home 3. H&r block at home   4. H&r block at home Minimum standard deduction. H&r block at home 4. H&r block at home $1,000 5. H&r block at home Enter the larger of line 3 or line 4. H&r block at home 5. H&r block at home   6. H&r block at home Enter the amount shown below for your filing status. H&r block at home Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 6. H&r block at home   7. H&r block at home Standard deduction. H&r block at home         a. H&r block at home Enter the smaller of line 5 or line 6. H&r block at home If born after January 1, 1949, and not blind, stop here. H&r block at home This is your standard deduction. H&r block at home Otherwise, go on to line 7b. H&r block at home 7a. H&r block at home     b. H&r block at home If born before January 2, 1949, or blind, multiply $1,500 ($1,200 if married) by the number in the box above. H&r block at home 7b. H&r block at home     c. H&r block at home Add lines 7a and 7b. H&r block at home This is your standard deduction for 2013. H&r block at home 7c. H&r block at home   Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. H&r block at home It also includes any amount received as a scholarship that you must include in your income. H&r block at home Prev  Up  Next   Home   More Online Publications
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The H&r Block At Home

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