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© 2010 - 2018 Tax Return Form 1040ez
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Tax return form 1040ez Publication 915 - Main Content Table of Contents Are Any of Your Benefits Taxable?Worksheet A. Tax return form 1040ez Exemption from withholding. Tax return form 1040ez 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. Tax return form 1040ez When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Children's benefits. Tax return form 1040ez The rules in this publication apply to benefits received by children. Tax return form 1040ez See Who is taxed , later. Tax return form 1040ez The SSA issues Form SSA-1099 and Form SSA-1042S. Tax return form 1040ez The RRB issues Form RRB-1099 and Form RRB-1042S. Tax return form 1040ez These forms (tax statements) report the amounts paid and repaid, and taxes withheld for a tax year. Tax return form 1040ez You may receive more than one of these forms for the same tax year. Tax return form 1040ez See the Appendix at the end of this publication for more information. Tax return form 1040ez Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. Tax return form 1040ez The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is an error in the original. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez Figuring total income. Tax return form 1040ez To figure the total of one-half of your benefits plus your other income, use Worksheet A, discussed later. Tax return form 1040ez If the total is more than your base amount, part of your benefits may be taxable. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Tax return form 1040ez Base amount. Tax return form 1040ez 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. Tax return form 1040ez Worksheet A. Tax return form 1040ez You can use Worksheet A to figure the amount of income to compare with your base amount. Tax return form 1040ez This is a quick way to check whether some of your benefits may be taxable. Tax return form 1040ez Worksheet A. Tax return form 1040ez A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. Tax return form 1040ez Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Tax return form 1040ez (If you received more than one form, combine the amounts from box 5 and enter the total. Tax return form 1040ez ) A. Tax return form 1040ez Note. Tax return form 1040ez If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Tax return form 1040ez B. Tax return form 1040ez Enter one-half of the amount on line A B. Tax return form 1040ez C. Tax return form 1040ez Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Tax return form 1040ez D. Tax return form 1040ez Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Tax return form 1040ez E. Tax return form 1040ez Add lines B, C, and D E. Tax return form 1040ez Note. Tax return form 1040ez Compare the amount on line E to your base amount for your filing status. Tax return form 1040ez 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. Tax return form 1040ez If the amount on line E is more than your base amount, some of your benefits may be taxable. Tax return form 1040ez You need to complete Worksheet 1, shown later. Tax return form 1040ez 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 . Tax return form 1040ez Example. Tax return form 1040ez You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Tax return form 1040ez In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Tax return form 1040ez Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Tax return form 1040ez You also received a taxable pension of $22,800 and interest income of $500. Tax return form 1040ez You did not have any tax-exempt interest income. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez Filled-in Worksheet A. Tax return form 1040ez A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. Tax return form 1040ez Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Tax return form 1040ez (If you received more than one form, combine the amounts from box 5 and enter the total. Tax return form 1040ez ) A. Tax return form 1040ez $11,000 Note. Tax return form 1040ez If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Tax return form 1040ez B. Tax return form 1040ez Enter one-half of the amount on line A B. Tax return form 1040ez 5,500 C. Tax return form 1040ez Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Tax return form 1040ez 23,300 D. Tax return form 1040ez Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Tax return form 1040ez -0- E. Tax return form 1040ez Add lines B, C, and D E. Tax return form 1040ez $28,800 Note. Tax return form 1040ez Compare the amount on line E to your base amount for your filing status. Tax return form 1040ez 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. Tax return form 1040ez If the amount on line E is more than your base amount, some of your benefits may be taxable. Tax return form 1040ez You need to complete Worksheet 1, shown later. Tax return form 1040ez 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 . Tax return form 1040ez Who is taxed. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez Repayment of benefits. Tax return form 1040ez Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Tax return form 1040ez It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Tax return form 1040ez If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Tax return form 1040ez Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Tax return form 1040ez Your repayments are shown in box 4. Tax return form 1040ez The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Tax return form 1040ez Use the amount in box 5 to figure whether any of your benefits are taxable. Tax return form 1040ez Example. Tax return form 1040ez In 2012, you received $3,000 in social security benefits, and in 2013 you received $2,700. Tax return form 1040ez In March 2013, SSA notified you that you should have received only $2,500 in benefits in 2012. Tax return form 1040ez During 2013, you repaid $500 to SSA. Tax return form 1040ez The Form SSA-1099 you received for 2013 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). Tax return form 1040ez The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500). Tax return form 1040ez Tax withholding and estimated tax. Tax return form 1040ez 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. Tax return form 1040ez If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Statement. Tax return form 1040ez 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. Tax return form 1040ez For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. Tax return form 1040ez U. Tax return form 1040ez S. Tax return form 1040ez citizens residing abroad. Tax return form 1040ez U. Tax return form 1040ez S. Tax return form 1040ez citizens who are residents of the following countries are exempt from U. Tax return form 1040ez S. Tax return form 1040ez tax on their benefits. Tax return form 1040ez Canada. Tax return form 1040ez Egypt. Tax return form 1040ez Germany. Tax return form 1040ez Ireland. Tax return form 1040ez Israel. Tax return form 1040ez Italy. Tax return form 1040ez (You must also be a citizen of Italy for the exemption to apply. Tax return form 1040ez ) Romania. Tax return form 1040ez United Kingdom. Tax return form 1040ez The SSA will not withhold U. Tax return form 1040ez S. Tax return form 1040ez tax from your benefits if you are a U. Tax return form 1040ez S. Tax return form 1040ez citizen. Tax return form 1040ez The RRB will withhold U. Tax return form 1040ez S. Tax return form 1040ez tax from your benefits unless you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency information. Tax return form 1040ez 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. Tax return form 1040ez Contact the RRB to get this form. Tax return form 1040ez Lawful permanent residents. Tax return form 1040ez For U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Social security benefits paid to a green card holder are not subject to 30% withholding. Tax return form 1040ez 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. Tax return form 1040ez SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez S. Tax return form 1040ez lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Tax return form 1040ez I am filing a U. Tax return form 1040ez S. Tax return form 1040ez income tax return for the tax year as a resident alien reporting all of my worldwide income. Tax return form 1040ez I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien. Tax return form 1040ez ” Nonresident aliens. Tax return form 1040ez A nonresident alien is an individual who is not a citizen or resident of the United States. Tax return form 1040ez If you are a nonresident alien, the rules discussed in this publication do not apply to you. Tax return form 1040ez Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. Tax return form 1040ez You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. Tax return form 1040ez These forms will also show the tax rate and the amount of tax withheld from your benefits. Tax return form 1040ez Under tax treaties with the following countries, residents of these countries are exempt from U. Tax return form 1040ez S. Tax return form 1040ez tax on their benefits. Tax return form 1040ez Canada. Tax return form 1040ez Egypt. Tax return form 1040ez Germany. Tax return form 1040ez Ireland. Tax return form 1040ez Israel. Tax return form 1040ez Italy. Tax return form 1040ez Japan. Tax return form 1040ez Romania. Tax return form 1040ez United Kingdom. Tax return form 1040ez Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U. Tax return form 1040ez S. Tax return form 1040ez tax if the benefits are for services performed for the United States, its subdivisions, or local government authorities. Tax return form 1040ez If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate. Tax return form 1040ez For more information on whether you are a nonresident alien, see Publication 519, U. Tax return form 1040ez S. Tax return form 1040ez Tax Guide for Aliens. Tax return form 1040ez Exemption from withholding. Tax return form 1040ez 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. Tax return form 1040ez S. Tax return form 1040ez tax from your benefits. Tax return form 1040ez 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. Tax return form 1040ez Contact the RRB to get this form. Tax return form 1040ez Canadian or German social security benefits paid to U. Tax return form 1040ez S. Tax return form 1040ez residents. Tax return form 1040ez Under income tax treaties with Canada and Germany, social security benefits paid by those countries to U. Tax return form 1040ez S. Tax return form 1040ez residents are treated for U. Tax return form 1040ez S. Tax return form 1040ez income tax purposes as if they were paid under the social security legislation of the United States. Tax return form 1040ez If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1, shown later. Tax return form 1040ez How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Tax return form 1040ez You cannot use Form 1040EZ. Tax return form 1040ez Reporting on Form 1040. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez Reporting on Form 1040A. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez Benefits not taxable. Tax return form 1040ez If you are filing Form 1040EZ, do not report any benefits on your tax return. Tax return form 1040ez 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. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez Generally, the higher that total amount, the greater the taxable part of your benefits. Tax return form 1040ez Maximum taxable part. Tax return form 1040ez Generally, up to 50% of your benefits will be taxable. Tax return form 1040ez However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Tax return form 1040ez 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). Tax return form 1040ez You are married filing separately and lived with your spouse at any time during 2013. Tax return form 1040ez Which worksheet to use. Tax return form 1040ez A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. Tax return form 1040ez You can use either that worksheet or Worksheet 1 in this publication, unless any of the following situations applies to you. Tax return form 1040ez You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Tax return form 1040ez 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. Tax return form 1040ez Situation (1) does not apply and you take an exclusion for interest from qualified U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez In this situation, you must use Worksheet 1 in this publication to figure your taxable benefits. Tax return form 1040ez You received a lump-sum payment for an earlier year. Tax return form 1040ez In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in this publication. Tax return form 1040ez See Lump-Sum Election , later. Tax return form 1040ez Examples A few examples you can use as a guide to figure the taxable part of your benefits follow. Tax return form 1040ez Filled-in Worksheet 1. Tax return form 1040ez 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. Tax return form 1040ez 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). Tax return form 1040ez None of your benefits are taxable for 2013. Tax return form 1040ez For more information, see Repayments More Than Gross Benefits . Tax return form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Tax return form 1040ez 1. Tax return form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Tax return form 1040ez $5,980 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 2,990 3. Tax return form 1040ez 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. Tax return form 1040ez 28,990 4. Tax return form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Tax return form 1040ez -0- 5. Tax return form 1040ez 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. Tax return form 1040ez -0- 6. Tax return form 1040ez Combine lines 2, 3, 4, and 5 6. Tax return form 1040ez 31,980 7. Tax return form 1040ez 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. Tax return form 1040ez Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Tax return form 1040ez -0- 8. Tax return form 1040ez Is the amount on line 7 less than the amount on line 6? No. Tax return form 1040ez None of your social security benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 31,980 9. Tax return form 1040ez 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. Tax return form 1040ez 25,000 Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 9 less than the amount on line 8? No. Tax return form 1040ez None of your benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 6,980 11. Tax return form 1040ez 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. Tax return form 1040ez 9,000 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez -0- 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 6,980 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 3,490 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 2,990 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez -0- 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 2,990 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 5,083 19. Tax return form 1040ez Taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18. Tax return form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Tax return form 1040ez $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. Tax return form 1040ez Example 1. Tax return form 1040ez George White is single and files Form 1040 for 2013. Tax return form 1040ez 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. Tax return form 1040ez He received a Form SSA-1099 in January 2014 that shows his net social security benefits of $5,980 in box 5. Tax return form 1040ez To figure his taxable benefits, George completes Worksheet 1, shown below. Tax return form 1040ez On line 20a of his Form 1040, George enters his net benefits of $5,980. Tax return form 1040ez On line 20b, he enters his taxable benefits of $2,990. Tax return form 1040ez Example 2. Tax return form 1040ez Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Tax return form 1040ez Ray is retired and received a fully taxable pension of $15,500. Tax return form 1040ez He also received social security benefits and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Tax return form 1040ez Alice worked during the year and had wages of $14,000. Tax return form 1040ez She made a deductible payment to her IRA account of $1,000. Tax return form 1040ez Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Tax return form 1040ez They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Tax return form 1040ez They find none of Ray's social security benefits are taxable. Tax return form 1040ez On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Tax return form 1040ez Filled-in Worksheet 1. Tax return form 1040ez 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. Tax return form 1040ez 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). Tax return form 1040ez None of your benefits are taxable for 2013. Tax return form 1040ez For more information, see Repayments More Than Gross Benefits . Tax return form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Tax return form 1040ez 1. Tax return form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Tax return form 1040ez $5,600 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 2,800 3. Tax return form 1040ez 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. Tax return form 1040ez 29,750 4. Tax return form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Tax return form 1040ez -0- 5. Tax return form 1040ez 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. Tax return form 1040ez -0- 6. Tax return form 1040ez Combine lines 2, 3, 4, and 5 6. Tax return form 1040ez 32,550 7. Tax return form 1040ez 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. Tax return form 1040ez Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Tax return form 1040ez 1,000 8. Tax return form 1040ez Is the amount on line 7 less than the amount on line 6? No. Tax return form 1040ez None of your social security benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 31,550 9. Tax return form 1040ez 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. Tax return form 1040ez 32,000 Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 9 less than the amount on line 8? No. Tax return form 1040ez None of your benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 11. Tax return form 1040ez 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. Tax return form 1040ez 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 19. Tax return form 1040ez Taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18. Tax return form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Tax return form 1040ez 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. Tax return form 1040ez Example 3. Tax return form 1040ez Joe and Betty Johnson file a joint return on Form 1040 for 2013. Tax return form 1040ez Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Tax return form 1040ez Joe's Form RRB-1099 shows $10,000 in box 5. Tax return form 1040ez Betty is a retired government worker and received a fully taxable pension of $38,000. Tax return form 1040ez They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Tax return form 1040ez S. Tax return form 1040ez savings bond. Tax return form 1040ez The savings bond interest qualified for the exclusion. Tax return form 1040ez They figure their taxable benefits by completing Worksheet 1 below. Tax return form 1040ez Because they have qualified U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Tax return form 1040ez 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. Tax return form 1040ez (See Maximum taxable part under How Much Is Taxable earlier. Tax return form 1040ez ) Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Tax return form 1040ez Filled-in Worksheet 1. Tax return form 1040ez 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. Tax return form 1040ez 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). Tax return form 1040ez None of your benefits are taxable for 2013. Tax return form 1040ez For more information, see Repayments More Than Gross Benefits . Tax return form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Tax return form 1040ez 1. Tax return form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Tax return form 1040ez $10,000 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 5,000 3. Tax return form 1040ez 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. Tax return form 1040ez 40,500 4. Tax return form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Tax return form 1040ez -0- 5. Tax return form 1040ez 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. Tax return form 1040ez -0- 6. Tax return form 1040ez Combine lines 2, 3, 4, and 5 6. Tax return form 1040ez 45,500 7. Tax return form 1040ez 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. Tax return form 1040ez Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Tax return form 1040ez -0- 8. Tax return form 1040ez Is the amount on line 7 less than the amount on line 6? No. Tax return form 1040ez None of your social security benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 45,500 9. Tax return form 1040ez 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. Tax return form 1040ez 32,000 Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 9 less than the amount on line 8? No. Tax return form 1040ez None of your benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 13,500 11. Tax return form 1040ez 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. Tax return form 1040ez 12,000 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez 1,500 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 12,000 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 6,000 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 5,000 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez 1,275 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 6,275 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 8,500 19. Tax return form 1040ez Taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18. Tax return form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Tax return form 1040ez $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. Tax return form 1040ez Filled-in Worksheet 1. Tax return form 1040ez 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. Tax return form 1040ez 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). Tax return form 1040ez None of your benefits are taxable for 2013. Tax return form 1040ez For more information, see Repayments More Than Gross Benefits . Tax return form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Tax return form 1040ez 1. Tax return form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Tax return form 1040ez $4,000 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 2,000 3. Tax return form 1040ez 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. Tax return form 1040ez 8,000 4. Tax return form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Tax return form 1040ez -0- 5. Tax return form 1040ez 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. Tax return form 1040ez -0- 6. Tax return form 1040ez Combine lines 2, 3, 4, and 5 6. Tax return form 1040ez 10,000 7. Tax return form 1040ez 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. Tax return form 1040ez Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Tax return form 1040ez -0- 8. Tax return form 1040ez Is the amount on line 7 less than the amount on line 6? No. Tax return form 1040ez None of your social security benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 10,000 9. Tax return form 1040ez 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. Tax return form 1040ez Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 9 less than the amount on line 8? No. Tax return form 1040ez None of your benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 11. Tax return form 1040ez 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. Tax return form 1040ez 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 8,500 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 3,400 19. Tax return form 1040ez Taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18. Tax return form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Tax return form 1040ez $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. Tax return form 1040ez Example 4. Tax return form 1040ez Bill and Eileen Jones are married and live together, but file separate Form 1040 returns for 2013. Tax return form 1040ez Bill earned $8,000 during 2013. Tax return form 1040ez The only other income he had for the year was $4,000 net social security benefits (box 5 of his Form SSA-1099). Tax return form 1040ez Bill figures his taxable benefits by completing Worksheet 1 below. Tax return form 1040ez 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. Tax return form 1040ez See How Much Is Taxable earlier. Tax return form 1040ez Bill enters $4,000 on his Form 1040, line 20a, and $3,400 on Form 1040, line 20b. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez No part of the lump-sum death benefit is subject to tax. Tax return form 1040ez Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Tax return form 1040ez 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. Tax return form 1040ez You can elect this method if it lowers your taxable benefits. Tax return form 1040ez 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. Tax return form 1040ez Then you subtract any taxable benefits for that year that you previously reported. Tax return form 1040ez The remainder is the taxable part of the lump-sum payment. Tax return form 1040ez Add it to the taxable part of your benefits for 2013 (figured without the lump-sum payment for the earlier year). Tax return form 1040ez Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Tax return form 1040ez Do not file an amended return for the earlier year. Tax return form 1040ez Will the lump-sum election method lower your taxable benefits? To find out, take the following steps. Tax return form 1040ez Complete Worksheet 1 in this publication. Tax return form 1040ez Complete Worksheet 2 and Worksheet 3 as appropriate. Tax return form 1040ez Use Worksheet 2 if your lump-sum payment was for a year after 1993. Tax return form 1040ez Use Worksheet 3 if it was for 1993 or an earlier year. Tax return form 1040ez Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received the lump-sum payment. Tax return form 1040ez Complete Worksheet 4. Tax return form 1040ez Compare the taxable benefits on line 19 of Worksheet 1 with the taxable benefits on line 21 of Worksheet 4. Tax return form 1040ez 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. Tax return form 1040ez Making the election. Tax return form 1040ez If you elect to report your taxable benefits under the lump-sum election method, follow the instructions at the bottom of Worksheet 4. Tax return form 1040ez Do not attach the completed worksheets to your return. Tax return form 1040ez Keep them with your records. Tax return form 1040ez 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. Tax return form 1040ez Lump-sum payment reported on Form SSA-1099 or RRB-1099. Tax return form 1040ez 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. Tax return form 1040ez That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. Tax return form 1040ez The form will also show the year (or years) the payment is for. Tax return form 1040ez However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2011. Tax return form 1040ez You must contact the RRB for a breakdown by year for any amount shown in box 9. Tax return form 1040ez Example Jane Jackson is single. Tax return form 1040ez In 2012 she applied for social security disability benefits but was told she was ineligible. Tax return form 1040ez She appealed the decision and won. Tax return form 1040ez In 2013, she received a lump-sum payment of $6,000, of which $2,000 was for 2012 and $4,000 was for 2013. Tax return form 1040ez Jane also received $5,000 in social security benefits in 2013, so her total benefits in 2013 were $11,000. Tax return form 1040ez Jane's other income for 2012 and 2013 is as follows. Tax return form 1040ez 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. Tax return form 1040ez She does not need to complete Worksheet 3 because her lump-sum payment was for years after 1993. Tax return form 1040ez Jane completes Worksheet 1 to find the amount of her taxable benefits for 2013 under the regular method. Tax return form 1040ez She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2012 under the lump-sum election method. Tax return form 1040ez She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits. Tax return form 1040ez After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21, and Worksheet 1, line 19. Tax return form 1040ez Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. Tax return form 1040ez To do this, she prints “LSE” to the left of Form 1040, line 20a. Tax return form 1040ez She then enters $11,000 on Form 1040, line 20a, and her taxable benefits of $2,500 on line 20b. Tax return form 1040ez Jane's filled-in worksheets (1, 2, and 4) follow. Tax return form 1040ez Jane Jackson's Filled-in Worksheet 1. Tax return form 1040ez 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. Tax return form 1040ez 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). Tax return form 1040ez None of your benefits are taxable for 2013. Tax return form 1040ez For more information, see Repayments More Than Gross Benefits . Tax return form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Tax return form 1040ez 1. Tax return form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Tax return form 1040ez $11,000 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 5,500 3. Tax return form 1040ez 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. Tax return form 1040ez 25,500 4. Tax return form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Tax return form 1040ez -0- 5. Tax return form 1040ez 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. Tax return form 1040ez -0- 6. Tax return form 1040ez Combine lines 2, 3, 4, and 5 6. Tax return form 1040ez 31,000 7. Tax return form 1040ez 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. Tax return form 1040ez Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Tax return form 1040ez -0- 8. Tax return form 1040ez Is the amount on line 7 less than the amount on line 6? No. Tax return form 1040ez None of your social security benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 31,000 9. Tax return form 1040ez 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. Tax return form 1040ez 25,000 Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 9 less than the amount on line 8? No. Tax return form 1040ez None of your benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 6,000 11. Tax return form 1040ez 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. Tax return form 1040ez 9,000 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez -0- 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 6,000 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 3,000 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 3,000 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez -0- 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 3,000 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 9,350 19. Tax return form 1040ez Taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18. Tax return form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Tax return form 1040ez $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. Tax return form 1040ez Jane Jackson's Filled-in Worksheet 2. Tax return form 1040ez Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993) Enter earlier year 2012 1. Tax return form 1040ez 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. Tax return form 1040ez $2,000 Note. Tax return form 1040ez If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Tax return form 1040ez Otherwise, go on to line 2. Tax return form 1040ez 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 1,000 3. Tax return form 1040ez Enter your adjusted gross income for the earlier year 3. Tax return form 1040ez 23,000 4. Tax return form 1040ez Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez -0- 5. Tax return form 1040ez Enter any tax-exempt interest received in the earlier year 5. Tax return form 1040ez -0- 6. Tax return form 1040ez Add lines 2 through 5 6. Tax return form 1040ez 24,000 7. Tax return form 1040ez Enter your taxable benefits for the earlier year that you previously reported 7. Tax return form 1040ez -0- 8. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 24,000 9. Tax return form 1040ez 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. Tax return form 1040ez 25,000 Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 8 more than the amount on line 9? No. Tax return form 1040ez Skip lines 10 through 20 and enter -0- on line 21. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 11. Tax return form 1040ez 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. Tax return form 1040ez 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 19. Tax return form 1040ez Refigured taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18 19. Tax return form 1040ez 20. Tax return form 1040ez Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. Tax return form 1040ez 21. Tax return form 1040ez Additional taxable benefits. Tax return form 1040ez Subtract line 20 from line 19. Tax return form 1040ez Also enter this amount on Worksheet 4, line 20 21. Tax return form 1040ez -0- Do not file an amended return for this earlier year. Tax return form 1040ez Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. Tax return form 1040ez Jane Jackson's Filled-in Worksheet 4. Tax return form 1040ez 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. Tax return form 1040ez 1. Tax return form 1040ez 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. Tax return form 1040ez $9,000 Note. Tax return form 1040ez If line 1 is zero or less, skip lines 2 through 18, enter -0- on line 19 and go to line 20. Tax return form 1040ez Otherwise, go on to line 2. Tax return form 1040ez 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 4,500 3. Tax return form 1040ez Enter the amount from Worksheet 1, line 3 3. Tax return form 1040ez 25,500 4. Tax return form 1040ez Enter the amount from Worksheet 1, line 4 4. Tax return form 1040ez -0- 5. Tax return form 1040ez Enter the amount from Worksheet 1, line 5 5. Tax return form 1040ez -0- 6. Tax return form 1040ez Combine lines 2, 3, 4, and 5 6. Tax return form 1040ez 30,000 7. Tax return form 1040ez Enter the amount from Worksheet 1, line 7 7. Tax return form 1040ez -0- 8. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 30,000 9. Tax return form 1040ez Enter the amount from Worksheet 1, line 9. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then, go to line 18 9. Tax return form 1040ez 25,000 10. Tax return form 1040ez Is the amount on line 8 more than the amount on line 9? No. Tax return form 1040ez Skip lines 10 through 18, enter -0- on line 19, and go to line 20. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 5,000 11. Tax return form 1040ez Enter the amount from Worksheet 1, line 11 11. Tax return form 1040ez 9,000 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez -0- 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 5,000 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 2,500 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 2,500 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez -0- 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 2,500 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 7,650 19. Tax return form 1040ez Enter the smaller of line 17 or line 18 19. Tax return form 1040ez 2,500 20. Tax return form 1040ez 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. Tax return form 1040ez -0- 21. Tax return form 1040ez Taxable benefits under lump-sum election method. Tax return form 1040ez Add lines 19 and 20 21. Tax return form 1040ez $2,500 Next. Tax return form 1040ez Is line 21 above smaller than Worksheet 1, line 19? No. Tax return form 1040ez Do not use this method to figure your taxable benefits. Tax return form 1040ez Follow the instructions on Worksheet 1 to report your benefits. Tax return form 1040ez Yes. Tax return form 1040ez You can elect to report your taxable benefits under this method. Tax return form 1040ez To elect this method: Enter “LSE” to the left of Form 1040, line 20a, or Form 1040A, line 14a. Tax return form 1040ez If line 21 above is zero, follow the instructions in line 10 for “No” on Worksheet 1. Tax return form 1040ez Otherwise: Enter the amount from Worksheet 1, line 1, on Form 1040, line 20a, or on Form 1040A, line 14a. Tax return form 1040ez Enter the amount from line 21 above on Form 1040, line 20b, or on Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Tax return form 1040ez Disability payments. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Tax return form 1040ez 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. Tax return form 1040ez Legal expenses. Tax return form 1040ez 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. Tax return form 1040ez Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Tax return form 1040ez 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. Tax return form 1040ez 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. Tax return form 1040ez Do not use Worksheet 1 in this case. Tax return form 1040ez 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. Tax return form 1040ez If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Tax return form 1040ez Joint return. Tax return form 1040ez 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. Tax return form 1040ez You do this to get your net benefits when figuring if your combined benefits are taxable. Tax return form 1040ez Example. Tax return form 1040ez John and Mary file a joint return for 2013. Tax return form 1040ez John received Form SSA-1099 showing $3,000 in box 5. Tax return form 1040ez Mary also received Form SSA-1099 and the amount in box 5 was ($500). Tax return form 1040ez 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. Tax return form 1040ez Repayment of benefits received in an earlier year. Tax return form 1040ez 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. Tax return form 1040ez Deduction $3,000 or less. Tax return form 1040ez 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. Tax return form 1040ez Claim it on Schedule A (Form 1040), line 23. Tax return form 1040ez Deduction more than $3,000. Tax return form 1040ez 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. Tax return form 1040ez Figure your tax for 2013 in the following steps: Figure the tax without the itemized deduction included on Schedule A, line 28. Tax return form 1040ez 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. Tax return form 1040ez Then refigure the tax for that year. Tax return form 1040ez Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Tax return form 1040ez Subtract the result in (c) from the result in (a). Tax return form 1040ez Compare the tax figured in methods (1) and (2). Tax return form 1040ez Your tax for 2013 is the smaller of the two amounts. Tax return form 1040ez If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Tax return form 1040ez If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Tax return form 1040ez Check box d and enter “I. Tax return form 1040ez R. Tax return form 1040ez C. Tax return form 1040ez 1341” in the space next to that box. Tax return form 1040ez If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Tax return form 1040ez 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). Tax return form 1040ez Worksheet 1. Tax return form 1040ez 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. Tax return form 1040ez 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). Tax return form 1040ez None of your benefits are taxable for 2013. Tax return form 1040ez For more information, see Repayments More Than Gross Benefits . Tax return form 1040ez If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Tax return form 1040ez 1. Tax return form 1040ez Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Tax return form 1040ez Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Tax return form 1040ez 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 3. Tax return form 1040ez 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. Tax return form 1040ez 4. Tax return form 1040ez Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Tax return form 1040ez 5. Tax return form 1040ez 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. Tax return form 1040ez 6. Tax return form 1040ez Combine lines 2, 3, 4, and 5 6. Tax return form 1040ez 7. Tax return form 1040ez 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. Tax return form 1040ez Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Tax return form 1040ez 8. Tax return form 1040ez Is the amount on line 7 less than the amount on line 6? No. Tax return form 1040ez None of your social security benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 9. Tax return form 1040ez 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. Tax return form 1040ez Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 9 less than the amount on line 8? No. Tax return form 1040ez None of your benefits are taxable. Tax return form 1040ez Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Tax return form 1040ez 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. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 11. Tax return form 1040ez 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. Tax return form 1040ez 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 19. Tax return form 1040ez Taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18. Tax return form 1040ez Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Tax return form 1040ez 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. Tax return form 1040ez Worksheet 2. Tax return form 1040ez Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993) Enter earlier year 1. Tax return form 1040ez 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. Tax return form 1040ez Note. Tax return form 1040ez If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Tax return form 1040ez Otherwise, go on to line 2. Tax return form 1040ez 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 3. Tax return form 1040ez Enter your adjusted gross income for the earlier year 3. Tax return form 1040ez 4. Tax return form 1040ez Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez 5. Tax return form 1040ez Enter any tax-exempt interest received in the earlier year 5. Tax return form 1040ez 6. Tax return form 1040ez Add lines 2 through 5 6. Tax return form 1040ez 7. Tax return form 1040ez Enter your taxable benefits for the earlier year that you previously reported 7. Tax return form 1040ez 8. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 9. Tax return form 1040ez 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. Tax return form 1040ez Note. Tax return form 1040ez 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% (. Tax return form 1040ez 85) and enter the result on line 17. Tax return form 1040ez Then go to line 18. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 8 more than the amount on line 9? No. Tax return form 1040ez Skip lines 10 through 20 and enter -0- on line 21. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8 10. Tax return form 1040ez 11. Tax return form 1040ez 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. Tax return form 1040ez 12. Tax return form 1040ez Subtract line 11 from line 10. Tax return form 1040ez If zero or less, enter -0- 12. Tax return form 1040ez 13. Tax return form 1040ez Enter the smaller of line 10 or line 11 13. Tax return form 1040ez 14. Tax return form 1040ez Enter one-half of line 13 14. Tax return form 1040ez 15. Tax return form 1040ez Enter the smaller of line 2 or line 14 15. Tax return form 1040ez 16. Tax return form 1040ez Multiply line 12 by 85% (. Tax return form 1040ez 85). Tax return form 1040ez If line 12 is zero, enter -0- 16. Tax return form 1040ez 17. Tax return form 1040ez Add lines 15 and 16 17. Tax return form 1040ez 18. Tax return form 1040ez Multiply line 1 by 85% (. Tax return form 1040ez 85) 18. Tax return form 1040ez 19. Tax return form 1040ez Refigured taxable benefits. Tax return form 1040ez Enter the smaller of line 17 or line 18 19. Tax return form 1040ez 20. Tax return form 1040ez Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. Tax return form 1040ez 21. Tax return form 1040ez Additional taxable benefits. Tax return form 1040ez Subtract line 20 from line 19. Tax return form 1040ez Also enter this amount on Worksheet 4, line 20 21. Tax return form 1040ez Do not file an amended return for this earlier year. Tax return form 1040ez Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. Tax return form 1040ez Worksheet 3. Tax return form 1040ez Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994) Enter earlier year 1. Tax return form 1040ez 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. Tax return form 1040ez Note. Tax return form 1040ez If line 1 is zero or less, skip lines 2 through 13 and enter -0- on line 14. Tax return form 1040ez Otherwise, go on to line 2. Tax return form 1040ez 2. Tax return form 1040ez Enter one-half of line 1 2. Tax return form 1040ez 3. Tax return form 1040ez Enter your adjusted gross income for the earlier year 3. Tax return form 1040ez 4. Tax return form 1040ez Enter the total of any exclusions/adjustments you claimed in the earlier year for: Qualified U. Tax return form 1040ez S. Tax return form 1040ez 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. Tax return form 1040ez 5. Tax return form 1040ez Enter any tax-exempt interest received in the earlier year 5. Tax return form 1040ez 6. Tax return form 1040ez Add lines 2 through 5 6. Tax return form 1040ez 7. Tax return form 1040ez Enter your taxable benefits for the earlier year that you previously reported 7. Tax return form 1040ez 8. Tax return form 1040ez Subtract line 7 from line 6 8. Tax return form 1040ez 9. Tax return form 1040ez 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. Tax return form 1040ez 10. Tax return form 1040ez Is the amount on line 8 more than the amount on line 9? No. Tax return form 1040ez Skip lines 10 through 13 and enter -0- on line 14. Tax return form 1040ez Yes. Tax return form 1040ez Subtract line 9 from line 8. Tax return form 1040ez 10. Tax return form 1040ez 11. Tax return form 1040ez Enter one-half of line 10 11. Tax return form 1040ez 12. Tax return form 1040ez Refigured taxable benefits. Tax return form 1040ez Enter the smaller of line 2 or line 11 12. Tax return form 1040ez 13. Tax return form 1040ez Enter your taxable benefits for the earlier year (or as refigured due to a previous
The Tax Return Form 1040ez
Tax return form 1040ez 2. Tax return form 1040ez Foreclosures and Repossessions Table of Contents Amount realized and ordinary income on a recourse debt. Tax return form 1040ez Amount realized on a nonrecourse debt. Tax return form 1040ez If you do not make payments you owe on a loan secured by property, the lender may foreclose on the loan or repossess the property. Tax return form 1040ez The foreclosure or repossession is treated as a sale from which you may realize gain or loss. Tax return form 1040ez This is true even if you voluntarily return the property to the lender. Tax return form 1040ez If the outstanding loan balance was more than the FMV of the property and the lender cancels all or part of the remaining loan balance, you also may realize ordinary income from the cancellation of debt. Tax return form 1040ez You must report this income on your return unless certain exceptions or exclusions apply. Tax return form 1040ez See chapter 1 for more details. Tax return form 1040ez Borrower's gain or loss. Tax return form 1040ez You figure and report gain or loss from a foreclosure or repossession in the same way as gain or loss from a sale. Tax return form 1040ez The gain is the difference between the amount realized and your adjusted basis in the transferred property (amount realized minus adjusted basis). Tax return form 1040ez The loss is the difference between your adjusted basis in the transferred property and the amount realized (adjusted basis minus amount realized). Tax return form 1040ez For more information on figuring gain or loss from the sale of property, see Gain or Loss From Sales and Exchanges in Publication 544. Tax return form 1040ez You can use Table 1-1 to figure your ordinary income from the cancellation of debt and your gain or loss from a foreclosure or repossession. Tax return form 1040ez Amount realized and ordinary income on a recourse debt. Tax return form 1040ez If you are personally liable for the debt, the amount realized on the foreclosure or repossession includes the smaller of: The outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, or The FMV of the transferred property. Tax return form 1040ez The amount realized also includes any proceeds you received from the foreclosure sale. Tax return form 1040ez If the FMV of the transferred property is less than the total outstanding debt immediately before the transfer reduced by any amount for which you remain personally liable immediately after the transfer, the difference is ordinary income from the cancellation of debt. Tax return form 1040ez You must report this income on your return unless certain exceptions or exclusions apply. Tax return form 1040ez See chapter 1 for more details. Tax return form 1040ez Example 1. Tax return form 1040ez Tara bought a new car for $15,000. Tax return form 1040ez She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. Tax return form 1040ez Tara is personally liable for the loan (recourse debt) and the car is pledged as security for the loan. Tax return form 1040ez On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. Tax return form 1040ez The balance due after taking into account the payments Tara made was $10,000. Tax return form 1040ez The FMV of the car when it was repossessed was $9,000. Tax return form 1040ez On November 15, 2013, the credit company forgave the remaining $1,000 balance on the loan due to insufficient assets. Tax return form 1040ez In this case, the amount Tara realizes is $9,000. Tax return form 1040ez This is the smaller of: The $10,000 outstanding debt immediately before the repossession reduced by the $1,000 for which she remains personally liable immediately after the repossession ($10,000 − $1,000 = $9,000), or The $9,000 FMV of the car. Tax return form 1040ez Tara figures her gain or loss on the repossession by comparing the $9,000 amount realized with her $15,000 adjusted basis. Tax return form 1040ez She has a $6,000 nondeductible loss. Tax return form 1040ez After the cancellation of the remaining balance on the loan in November, Tara also has ordinary income from cancellation of debt in the amount of $1,000 (the remaining balance on the $10,000 loan after the $9,000 amount satisfied by the FMV of the repossessed car). Tax return form 1040ez Tara must report this $1,000 on her return unless one of the exceptions or exclusions described in chapter 1 applies. Tax return form 1040ez Example 2. Tax return form 1040ez Lili paid $200,000 for her home. Tax return form 1040ez She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. Tax return form 1040ez Lili is personally liable for the mortgage loan and the house secures the loan. Tax return form 1040ez In 2013, the bank foreclosed on the mortgage because Lili stopped making payments. Tax return form 1040ez When the bank foreclosed the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. Tax return form 1040ez At the time of the foreclosure, the bank forgave $2,000 of the $10,000 debt in excess of the FMV ($180,000 minus $170,000). Tax return form 1040ez She remained personally liable for the $8,000 balance. Tax return form 1040ez In this case, Lili has ordinary income from the cancellation of debt in the amount of $2,000. Tax return form 1040ez The $2,000 income from the cancellation of debt is figured by subtracting the $170,000 FMV of the house from the $172,000 difference between her total outstanding debt immediately before the transfer of property and the amount for which she remains personally liable immediately after the transfer ($180,000 minus $8,000). Tax return form 1040ez She is able to exclude the $2,000 of canceled debt from her income under the qualified principal residence indebtedness rules discussed earlier. Tax return form 1040ez Lili must also determine her gain or loss from the foreclosure. Tax return form 1040ez In this case, the amount that she realizes is $170,000. Tax return form 1040ez This is the smaller of: (a) the $180,000 outstanding debt immediately before the transfer reduced by the $8,000 for which she remains personally liable immediately after the transfer ($180,000 − $8,000 = $172,000) or (b) the $170,000 FMV of the house. Tax return form 1040ez Lili figures her gain or loss on the foreclosure by comparing the $170,000 amount realized with her $175,000 adjusted basis. Tax return form 1040ez She has a $5,000 nondeductible loss. Tax return form 1040ez Table 1-1. Tax return form 1040ez Worksheet for Foreclosures and Repossessions Part 1. Tax return form 1040ez Complete Part 1 only if you were personally liable for the debt (even if none of the debt was canceled). Tax return form 1040ez Otherwise, go to Part 2. Tax return form 1040ez 1. Tax return form 1040ez Enter the amount of outstanding debt immediately before the transfer of property reduced by any amount for which you remain personally liable immediately after the transfer of property 2. Tax return form 1040ez Enter the fair market value of the transferred property 3. Tax return form 1040ez Ordinary income from the cancellation of debt upon foreclosure or repossession. Tax return form 1040ez * Subtract line 2 from line 1. Tax return form 1040ez If less than zero, enter zero. Tax return form 1040ez Next, go to Part 2 Part 2. Tax return form 1040ez Gain or loss from foreclosure or repossession. Tax return form 1040ez 4. Tax return form 1040ez Enter the smaller of line 1 or line 2. Tax return form 1040ez If you did not complete Part 1 (because you were not personally liable for the debt), enter the amount of outstanding debt immediately before the transfer of property 5. Tax return form 1040ez Enter any proceeds you received from the foreclosure sale 6. Tax return form 1040ez Add line 4 and line 5 7. Tax return form 1040ez Enter the adjusted basis of the transferred property 8. Tax return form 1040ez Gain or loss from foreclosure or repossession. Tax return form 1040ez Subtract line 7 from line 6 * The income may not be taxable. Tax return form 1040ez See chapter 1 for more details. Tax return form 1040ez Amount realized on a nonrecourse debt. Tax return form 1040ez If you are not personally liable for repaying the debt secured by the transferred property, the amount you realize includes the full amount of the outstanding debt immediately before the transfer. Tax return form 1040ez This is true even if the FMV of the property is less than the outstanding debt immediately before the transfer. Tax return form 1040ez Example 1. Tax return form 1040ez Tara bought a new car for $15,000. Tax return form 1040ez She made a $2,000 downpayment and borrowed the remaining $13,000 from the dealer's credit company. Tax return form 1040ez Tara is not personally liable for the loan (nonrecourse), but pledged the new car as security for the loan. Tax return form 1040ez On August 1, 2013, the credit company repossessed the car because Tara had stopped making loan payments. Tax return form 1040ez The balance due after taking into account the payments Tara made was $10,000. Tax return form 1040ez The FMV of the car when it was repossessed was $9,000. Tax return form 1040ez The amount Tara realized on the repossession is $10,000. Tax return form 1040ez That is the outstanding amount of debt immediately before the repossession, even though the FMV of the car is less than $10,000. Tax return form 1040ez Tara figures her gain or loss on the repossession by comparing the $10,000 amount realized with her $15,000 adjusted basis. Tax return form 1040ez Tara has a $5,000 nondeductible loss. Tax return form 1040ez Example 2. Tax return form 1040ez Lili paid $200,000 for her home. Tax return form 1040ez She made a $15,000 downpayment and borrowed the remaining $185,000 from a bank. Tax return form 1040ez She is not personally liable for the loan, but grants the bank a mortgage. Tax return form 1040ez The bank foreclosed on the mortgage because Lili stopped making payments. Tax return form 1040ez When the bank foreclosed on the mortgage, the balance due was $180,000, the FMV of the house was $170,000, and Lili's adjusted basis was $175,000 due to a casualty loss she had deducted. Tax return form 1040ez The amount Lili realized on the foreclosure is $180,000, the outstanding debt immediately before the foreclosure. Tax return form 1040ez She figures her gain or loss by comparing the $180,000 amount realized with her $175,000 adjusted basis. Tax return form 1040ez Lili has a $5,000 realized gain. Tax return form 1040ez See Publication 523 to figure and report any taxable amount. Tax return form 1040ez Forms 1099-A and 1099-C. Tax return form 1040ez A lender who acquires an interest in your property in a foreclosure or repossession should send you Form 1099-A, Acquisition or Abandonment of Secured Property, showing information you need to figure your gain or loss. Tax return form 1040ez However, if the lender also cancels part of your debt and must file Form 1099-C, the lender can include the information about the foreclosure or repossession on that form instead of on Form 1099-A. Tax return form 1040ez The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Tax return form 1040ez For foreclosures or repossessions occurring in 2013, these forms should be sent to you by January 31, 2014. Tax return form 1040ez Prev Up Next Home More Online Publications