File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Freestatetaxreturn

Irs Tax Return Forms 2012How Much Does It Cost To Amend A Tax ReturnTaxH&r Block Online TaxIrs Forms 20121040ez 2010 Form PrintableTurbotax MilitaryAmend Tax Return1040 Tax Form 2011Mi 1040xHow To File An Extension For 2011 Taxes Free2012 Tax Preparation Software Free1040ez 2012 FormTax Form 1040nrH & R Block ComHow Can I File My 2012 Taxes OnlineIrs 1040 Ez Form Instructions 2013File 1040xAmended Tax Return 2012Student IncomeTaxact 2011 Returning UserHow Do I File My 2009 Taxes OnlineFree E File 1040ez1040ez Tax Form And BookletFree Tax ReturnFirst Time Filing Taxes College Student2013 Tax Forms 1040ezForm 1040Taxcut Com1040x For 2011Ammended Tax FormState Tax Forms FreeHow Do I File My Taxes For 2010File Free State TaxFree Taxes For MilitaryHow To File Past Tax ReturnsBack Tax ReliefState Tax Preparation Free1040 Ez Tax Form 2012Free 2010 Tax Filing

Freestatetaxreturn

Freestatetaxreturn 11. Freestatetaxreturn   Social Security and Equivalent Railroad Retirement Benefits Table of Contents Introduction Useful Items - You may want to see: Are Any of Your Benefits Taxable? How To Report Your BenefitsHow Much Is Taxable? Examples Deductions Related to Your BenefitsRepayments More Than Gross Benefits Introduction This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Freestatetaxreturn It explains the following topics. Freestatetaxreturn How to figure whether your benefits are taxable. Freestatetaxreturn How to use the social security benefits worksheet (with examples). Freestatetaxreturn How to report your taxable benefits. Freestatetaxreturn How to treat repayments that are more than the benefits you received during the year. Freestatetaxreturn Social security benefits include monthly retirement, survivor, and disability benefits. Freestatetaxreturn They do not include supplemental security income (SSI) payments, which are not taxable. Freestatetaxreturn Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Freestatetaxreturn They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Freestatetaxreturn If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board. Freestatetaxreturn These forms show the amounts received and repaid, and taxes withheld for the year. Freestatetaxreturn You may receive more than one of these forms for the same year. Freestatetaxreturn You should add the amounts shown on all the Forms SSA-1099 and Forms RRB-1099 you receive for the year to determine the total amounts received and repaid, and taxes withheld for that year. Freestatetaxreturn See the Appendix at the end of Publication 915 for more information. Freestatetaxreturn Note. Freestatetaxreturn When the term “benefits” is used in this chapter, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Freestatetaxreturn What is not covered in this chapter. Freestatetaxreturn   This chapter does not cover the tax rules for the following railroad retirement benefits. Freestatetaxreturn Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. Freestatetaxreturn Tier 2 benefits. Freestatetaxreturn Vested dual benefits. Freestatetaxreturn Supplemental annuity benefits. Freestatetaxreturn For information on these benefits, see Publication 575, Pension and Annuity Income. Freestatetaxreturn   This chapter does not cover the tax rules for social security benefits reported on Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. Freestatetaxreturn For information about these benefits, see Publication 519, U. Freestatetaxreturn S. Freestatetaxreturn Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Freestatetaxreturn   This chapter also does not cover the tax rules for foreign social security benefits. Freestatetaxreturn These benefits are taxable as annuities, unless they are exempt from U. Freestatetaxreturn S. Freestatetaxreturn tax or treated as a U. Freestatetaxreturn S. Freestatetaxreturn social security benefit under a tax treaty. Freestatetaxreturn Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 915 Social Security and Equivalent Railroad Retirement Benefits Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request Are Any of Your Benefits Taxable? To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Freestatetaxreturn When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Freestatetaxreturn S. Freestatetaxreturn 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. Freestatetaxreturn Children's benefits. Freestatetaxreturn   The rules in this chapter apply to benefits received by children. Freestatetaxreturn See Who is taxed , later. Freestatetaxreturn Figuring total income. Freestatetaxreturn   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. Freestatetaxreturn If the total is more than your base amount, part of your benefits may be taxable. Freestatetaxreturn    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. Freestatetaxreturn 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. Freestatetaxreturn    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. Freestatetaxreturn If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Freestatetaxreturn Base amount. Freestatetaxreturn   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. Freestatetaxreturn Worksheet 11-1. Freestatetaxreturn   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. Freestatetaxreturn This is a quick way to check whether some of your benefits may be taxable. Freestatetaxreturn Worksheet 11-1. Freestatetaxreturn A Quick Way To Check if Your Benefits May Be Taxable A. Freestatetaxreturn Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Freestatetaxreturn Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Freestatetaxreturn (If you received more than one form, combine the amounts from box 5 and enter the total. Freestatetaxreturn ) A. Freestatetaxreturn   Note. Freestatetaxreturn If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Freestatetaxreturn B. Freestatetaxreturn Enter one-half of the amount on line A B. Freestatetaxreturn   C. Freestatetaxreturn Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Freestatetaxreturn   D. Freestatetaxreturn Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Freestatetaxreturn   E. Freestatetaxreturn Add lines B, C, and D E. Freestatetaxreturn   Note. Freestatetaxreturn Compare the amount on line E to your base amount for your filing status. Freestatetaxreturn 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. Freestatetaxreturn If the amount on line E is more than your base amount, some of your benefits may be taxable. Freestatetaxreturn You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Freestatetaxreturn 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. Freestatetaxreturn Example. Freestatetaxreturn You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Freestatetaxreturn In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Freestatetaxreturn Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Freestatetaxreturn You also received a taxable pension of $22,800 and interest income of $500. Freestatetaxreturn You did not have any tax-exempt interest income. Freestatetaxreturn Your benefits are not taxable for 2013 because your income, as figured in Worksheet 11-1, is not more than your base amount ($32,000) for married filing jointly. Freestatetaxreturn 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. Freestatetaxreturn Filled-in Worksheet 11-1. Freestatetaxreturn A Quick Way To Check if Your Benefits May Be Taxable A. Freestatetaxreturn Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Freestatetaxreturn Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Freestatetaxreturn (If you received more than one form, combine the amounts from box 5 and enter the total. Freestatetaxreturn ) A. Freestatetaxreturn $11,000 Note. Freestatetaxreturn If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Freestatetaxreturn B. Freestatetaxreturn Enter one-half of the amount on line A B. Freestatetaxreturn 5,500 C. Freestatetaxreturn Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Freestatetaxreturn 23,300 D. Freestatetaxreturn Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Freestatetaxreturn -0- E. Freestatetaxreturn Add lines B, C, and D E. Freestatetaxreturn $28,800 Note. Freestatetaxreturn Compare the amount on line E to your base amount for your filing status. Freestatetaxreturn 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. Freestatetaxreturn If the amount on line E is more than your base amount, some of your benefits may be taxable. Freestatetaxreturn You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Freestatetaxreturn 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. Freestatetaxreturn Who is taxed. Freestatetaxreturn   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. Freestatetaxreturn 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. Freestatetaxreturn 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. Freestatetaxreturn Repayment of benefits. Freestatetaxreturn   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Freestatetaxreturn It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Freestatetaxreturn If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Freestatetaxreturn   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. Freestatetaxreturn Your repayments are shown in box 4. Freestatetaxreturn The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Freestatetaxreturn Use the amount in box 5 to figure whether any of your benefits are taxable. Freestatetaxreturn Tax withholding and estimated tax. Freestatetaxreturn   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. Freestatetaxreturn If you choose to do this, you must complete a Form W-4V. Freestatetaxreturn   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. Freestatetaxreturn For details, see Publication 505 or the instructions for Form 1040-ES. Freestatetaxreturn How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Freestatetaxreturn You cannot use Form 1040EZ. Freestatetaxreturn Reporting on Form 1040. Freestatetaxreturn   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. Freestatetaxreturn 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. Freestatetaxreturn Reporting on Form 1040A. Freestatetaxreturn   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. Freestatetaxreturn 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. Freestatetaxreturn Benefits not taxable. Freestatetaxreturn   If you are filing Form 1040EZ, do not report any benefits on your tax return. Freestatetaxreturn 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. Freestatetaxreturn Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Freestatetaxreturn 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. Freestatetaxreturn 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. Freestatetaxreturn Generally, the higher that total amount, the greater the taxable part of your benefits. Freestatetaxreturn Maximum taxable part. Freestatetaxreturn   Generally, up to 50% of your benefits will be taxable. Freestatetaxreturn However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Freestatetaxreturn 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). Freestatetaxreturn You are married filing separately and lived with your spouse at any time during 2013. Freestatetaxreturn Which worksheet to use. Freestatetaxreturn   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. Freestatetaxreturn You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. Freestatetaxreturn You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Freestatetaxreturn 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. Freestatetaxreturn Situation (1) does not apply and you take an exclusion for interest from qualified U. Freestatetaxreturn S. Freestatetaxreturn 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. Freestatetaxreturn In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. Freestatetaxreturn You received a lump-sum payment for an earlier year. Freestatetaxreturn In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Freestatetaxreturn See Lump-sum election next. Freestatetaxreturn Lump-sum election. Freestatetaxreturn   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. Freestatetaxreturn    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. Freestatetaxreturn No part of the lump-sum death benefit is subject to tax. Freestatetaxreturn   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Freestatetaxreturn 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. Freestatetaxreturn You can elect this method if it lowers your taxable benefits. Freestatetaxreturn Making the election. Freestatetaxreturn   If you received a lump-sum benefit payment in 2013 that includes benefits for one or more earlier years, follow the instructions in Publication 915 under Lump-Sum Election to see whether making the election will lower your taxable benefits. Freestatetaxreturn That discussion also explains how to make the election. Freestatetaxreturn    Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Freestatetaxreturn Do not file an amended return for the earlier year. Freestatetaxreturn Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. Freestatetaxreturn Example 1. Freestatetaxreturn George White is single and files Form 1040 for 2013. Freestatetaxreturn He received the following income in 2013: Fully taxable pension $18,600 Wages from part-time job 9,400 Taxable interest income 990 Total $28,990 George also received social security benefits during 2013. Freestatetaxreturn The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. Freestatetaxreturn To figure his taxable benefits, George completes the worksheet shown here. Freestatetaxreturn Filled-in Worksheet 1. Freestatetaxreturn Figuring Your Taxable Benefits 1. Freestatetaxreturn Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Freestatetaxreturn Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. Freestatetaxreturn Enter one-half of line 1 2,990 3. Freestatetaxreturn Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Freestatetaxreturn     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. Freestatetaxreturn Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Freestatetaxreturn 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 -0-       6. Freestatetaxreturn Combine lines 2, 3, 4, and 5 31,980 7. Freestatetaxreturn Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Freestatetaxreturn     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Freestatetaxreturn Is the amount on line 7 less than the amount on line 6?     No. Freestatetaxreturn None of your social security benefits are taxable. Freestatetaxreturn Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Freestatetaxreturn   Yes. Freestatetaxreturn Subtract line 7 from line 6 31,980 9. Freestatetaxreturn 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 25,000   Note. Freestatetaxreturn 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% (. Freestatetaxreturn 85) and enter the result on line 17. Freestatetaxreturn Then go to line 18. Freestatetaxreturn   10. Freestatetaxreturn Is the amount on line 9 less than the amount on line 8?     No. Freestatetaxreturn None of your benefits are taxable. Freestatetaxreturn Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Freestatetaxreturn 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. Freestatetaxreturn     Yes. Freestatetaxreturn Subtract line 9 from line 8 6,980 11. Freestatetaxreturn 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 9,000 12. Freestatetaxreturn Subtract line 11 from line 10. Freestatetaxreturn If zero or less, enter -0- -0- 13. Freestatetaxreturn Enter the smaller of line 10 or line 11 6,980 14. Freestatetaxreturn Enter one-half of line 13 3,490 15. Freestatetaxreturn Enter the smaller of line 2 or line 14 2,990 16. Freestatetaxreturn Multiply line 12 by 85% (. Freestatetaxreturn 85). Freestatetaxreturn If line 12 is zero, enter -0- -0- 17. Freestatetaxreturn Add lines 15 and 16 2,990 18. Freestatetaxreturn Multiply line 1 by 85% (. Freestatetaxreturn 85) 5,083 19. Freestatetaxreturn Taxable benefits. Freestatetaxreturn Enter the smaller of line 17 or line 18. Freestatetaxreturn Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $2,990 The amount on line 19 of George's worksheet shows that $2,990 of his social security benefits is taxable. Freestatetaxreturn On line 20a of his Form 1040, George enters his net benefits of $5,980. Freestatetaxreturn On line 20b, he enters his taxable benefits of $2,990. Freestatetaxreturn Example 2. Freestatetaxreturn Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Freestatetaxreturn Ray is retired and received a fully taxable pension of $15,500. Freestatetaxreturn He also received social security benefits, and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Freestatetaxreturn Alice worked during the year and had wages of $14,000. Freestatetaxreturn She made a deductible payment to her IRA account of $1,000. Freestatetaxreturn Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Freestatetaxreturn They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Freestatetaxreturn They find none of Ray's social security benefits are taxable. Freestatetaxreturn On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Freestatetaxreturn Filled-in Worksheet 1. Freestatetaxreturn Figuring Your Taxable Benefits 1. Freestatetaxreturn Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Freestatetaxreturn Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. Freestatetaxreturn Enter one-half of line 1 2,800 3. Freestatetaxreturn Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Freestatetaxreturn     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. Freestatetaxreturn Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Freestatetaxreturn 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 -0-       6. Freestatetaxreturn Combine lines 2, 3, 4, and 5 32,550 7. Freestatetaxreturn Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Freestatetaxreturn     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. Freestatetaxreturn Is the amount on line 7 less than the amount on line 6?     No. Freestatetaxreturn None of your social security benefits are taxable. Freestatetaxreturn Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Freestatetaxreturn   Yes. Freestatetaxreturn Subtract line 7 from line 6 31,550 9. Freestatetaxreturn 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 32,000   Note. Freestatetaxreturn 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% (. Freestatetaxreturn 85) and enter the result on line 17. Freestatetaxreturn Then go to line 18. Freestatetaxreturn   10. Freestatetaxreturn Is the amount on line 9 less than the amount on line 8?     No. Freestatetaxreturn None of your benefits are taxable. Freestatetaxreturn Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Freestatetaxreturn 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. Freestatetaxreturn     Yes. Freestatetaxreturn Subtract line 9 from line 8   11. Freestatetaxreturn 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   12. Freestatetaxreturn Subtract line 11 from line 10. Freestatetaxreturn If zero or less, enter -0-   13. Freestatetaxreturn Enter the smaller of line 10 or line 11   14. Freestatetaxreturn Enter one-half of line 13   15. Freestatetaxreturn Enter the smaller of line 2 or line 14   16. Freestatetaxreturn Multiply line 12 by 85% (. Freestatetaxreturn 85). Freestatetaxreturn If line 12 is zero, enter -0-   17. Freestatetaxreturn Add lines 15 and 16   18. Freestatetaxreturn Multiply line 1 by 85% (. Freestatetaxreturn 85)   19. Freestatetaxreturn Taxable benefits. Freestatetaxreturn Enter the smaller of line 17 or line 18. Freestatetaxreturn Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. Freestatetaxreturn Joe and Betty Johnson file a joint return on Form 1040 for 2013. Freestatetaxreturn Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Freestatetaxreturn Joe's Form RRB-1099 shows $10,000 in box 5. Freestatetaxreturn Betty is a retired government worker and receives a fully taxable pension of $38,000. Freestatetaxreturn They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Freestatetaxreturn S. Freestatetaxreturn savings bond. Freestatetaxreturn The savings bond interest qualified for the exclusion. Freestatetaxreturn They figure their taxable benefits by completing Worksheet 1. Freestatetaxreturn Because they have qualified U. Freestatetaxreturn S. Freestatetaxreturn 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. Freestatetaxreturn On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Freestatetaxreturn Filled-in Worksheet 1. Freestatetaxreturn 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. Freestatetaxreturn • 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). Freestatetaxreturn None of your benefits are taxable for 2013. Freestatetaxreturn For more information, see Repayments More Than Gross Benefits. Freestatetaxreturn • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Freestatetaxreturn S. Freestatetaxreturn 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. Freestatetaxreturn Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Freestatetaxreturn 1. Freestatetaxreturn Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Freestatetaxreturn Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. Freestatetaxreturn Enter one-half of line 1 5,000 3. Freestatetaxreturn Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Freestatetaxreturn     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. Freestatetaxreturn Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Freestatetaxreturn 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 -0-       6. Freestatetaxreturn Combine lines 2, 3, 4, and 5 45,500 7. Freestatetaxreturn Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Freestatetaxreturn     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Freestatetaxreturn Is the amount on line 7 less than the amount on line 6?     No. Freestatetaxreturn None of your social security benefits are taxable. Freestatetaxreturn Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Freestatetaxreturn   Yes. Freestatetaxreturn Subtract line 7 from line 6 45,500 9. Freestatetaxreturn 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 32,000   Note. Freestatetaxreturn 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% (. Freestatetaxreturn 85) and enter the result on line 17. Freestatetaxreturn Then go to line 18. Freestatetaxreturn   10. Freestatetaxreturn Is the amount on line 9 less than the amount on line 8?     No. Freestatetaxreturn None of your benefits are taxable. Freestatetaxreturn Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Freestatetaxreturn 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. Freestatetaxreturn     Yes. Freestatetaxreturn Subtract line 9 from line 8 13,500 11. Freestatetaxreturn 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 12,000 12. Freestatetaxreturn Subtract line 11 from line 10. Freestatetaxreturn If zero or less, enter -0- 1,500 13. Freestatetaxreturn Enter the smaller of line 10 or line 11 12,000 14. Freestatetaxreturn Enter one-half of line 13 6,000 15. Freestatetaxreturn Enter the smaller of line 2 or line 14 5,000 16. Freestatetaxreturn Multiply line 12 by 85% (. Freestatetaxreturn 85). Freestatetaxreturn If line 12 is zero, enter -0- 1,275 17. Freestatetaxreturn Add lines 15 and 16 6,275 18. Freestatetaxreturn Multiply line 1 by 85% (. Freestatetaxreturn 85) 8,500 19. Freestatetaxreturn Taxable benefits. Freestatetaxreturn Enter the smaller of line 17 or line 18. Freestatetaxreturn Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $6,275 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. Freestatetaxreturn Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Freestatetaxreturn Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Freestatetaxreturn Disability payments. Freestatetaxreturn   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. Freestatetaxreturn 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. Freestatetaxreturn If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Freestatetaxreturn Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. Freestatetaxreturn Legal expenses. Freestatetaxreturn   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. Freestatetaxreturn   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Freestatetaxreturn 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. Freestatetaxreturn 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. Freestatetaxreturn Do not use a worksheet in this case. Freestatetaxreturn 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. Freestatetaxreturn If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Freestatetaxreturn Joint return. Freestatetaxreturn   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. Freestatetaxreturn You do this to get your net benefits when figuring if your combined benefits are taxable. Freestatetaxreturn Example. Freestatetaxreturn John and Mary file a joint return for 2013. Freestatetaxreturn John received Form SSA-1099 showing $3,000 in box 5. Freestatetaxreturn Mary also received Form SSA-1099 and the amount in box 5 was ($500). Freestatetaxreturn 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. Freestatetaxreturn Repayment of benefits received in an earlier year. Freestatetaxreturn   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. Freestatetaxreturn Deduction $3,000 or less. Freestatetaxreturn   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. Freestatetaxreturn Claim it on Schedule A (Form 1040), line 23. Freestatetaxreturn Deduction more than $3,000. Freestatetaxreturn    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. Freestatetaxreturn Figure your tax for 2013 in the following steps. Freestatetaxreturn Figure the tax without the itemized deduction included on Schedule A, line 28. Freestatetaxreturn 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. Freestatetaxreturn Then refigure the tax for that year. Freestatetaxreturn Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Freestatetaxreturn Subtract the result in (c) from the result in (a). Freestatetaxreturn Compare the tax figured in methods (1) and (2). Freestatetaxreturn Your tax for 2013 is the smaller of the two amounts. Freestatetaxreturn If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Freestatetaxreturn If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Freestatetaxreturn Check box d and enter “I. Freestatetaxreturn R. Freestatetaxreturn C. Freestatetaxreturn 1341” in the space next to that box. Freestatetaxreturn If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Freestatetaxreturn Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Withdrawal of Cycle C Cash Balance Applications

Cycle C determination letter applicants who intend to adopt a pre-approved cash balance plan may withdraw their applications for individually designed cash balance plans by May 31, 2014, if they sign Form 8905, Certification of Intent to Adopt a Pre-approved Plan, by March 31, 2014.

Background

Announcement 2014-4 extended the submission period for pre-approved defined benefit pension plans from January 31, 2014, to February 2, 2015, to allow time for the IRS to expand the pre-approved program to permit plans with cash balance features. The announcement also allowed Cycle C plan sponsors who want to adopt a pre-approved cash balance plan to complete Form 8905 by March 31, 2014, instead of submitting determination letter applications for individually designed plans by the Cycle C deadline of January 31, 2014.

Withdrawals for Cycle C applicants

Cycle C applicants who already submitted their applications for individually-designed cash balance plans during the second Cycle C remedial amendment cycle that ended January 31, 2014, and who instead wish to adopt a pre-approved cash balance plan, may sign the Form 8905, withdraw the application, and request a refund of the user fee by complying with the instructions below.

How to request a withdrawal and user fee refund

Request the return of your Cycle C determination letter application and a refund of the user fee in writing. Your request must be postmarked (or faxed) by May 31, 2014. You must include:

  1. the name of the plan sponsor
  2. plan number
  3. EIN
  4. the document locator number, if known (shown on your IRS acknowledgement letter)
  5. the following statement in bold letters: “Per Announcement 2014-4, we are withdrawing this application in order to submit under the pre-approved program.

Fax or mail your request

Mail address:

Internal Revenue Service
550 Main Street
Cincinnati, OH 45202
Attn:  Joyce Heinbuch

Fax number:

Attn: Ms. Heinbuch, (513) 263-4699 (not a toll-free call).

Additional resources

Page Last Reviewed or Updated: 19-Mar-2014

The Freestatetaxreturn

Freestatetaxreturn Index A Adjusted basis for installment sale, Adjusted basis for installment sale purposes. Freestatetaxreturn Assistance (see Tax help) B Basis Adjusted, Adjusted basis. Freestatetaxreturn Assumed mortgage, Buyer Assumes Mortgage Installment obligation, Basis. Freestatetaxreturn , Basis in installment obligation. Freestatetaxreturn , Basis in installment obligation. Freestatetaxreturn Installment sale, Adjusted basis for installment sale purposes. Freestatetaxreturn Repossessed property, Basis in repossessed property. Freestatetaxreturn , Basis. Freestatetaxreturn Bond, Bond. Freestatetaxreturn Buyer's note, Buyer's note. Freestatetaxreturn C Contingent payment sale, Contingent Payment Sale Contract price, Contract price. Freestatetaxreturn D Dealer sales, special rule, Dealer sales. Freestatetaxreturn Depreciation recapture income, Depreciation Recapture Income Disposition of installment obligation, Disposition of an Installment Obligation E Electing out, Electing Out of the Installment Method Escrow account, Escrow Account F Fair market value, Fair market value (FMV). Freestatetaxreturn , Fair market value (FMV). Freestatetaxreturn Figuring installment sale income, Figuring Installment Sale Income Form 4797, Form 4797, Form 4797. Freestatetaxreturn 6252, Form 6252, Reporting an Installment Sale 8594, Reporting requirement. Freestatetaxreturn Schedule D (Form 1040), Schedule D (Form 1040), Other forms. Freestatetaxreturn , Schedule D (Form 1040). Freestatetaxreturn Free tax services, Free help with your tax return. Freestatetaxreturn G Gross profit percentage, Gross profit percentage. Freestatetaxreturn Gross profit, defined, Gross profit. Freestatetaxreturn Guarantee, Debt not payable on demand. Freestatetaxreturn H Help (see Tax help) I Installment obligation Defined, Installment obligation. Freestatetaxreturn Disposition, Disposition of an Installment Obligation Used as security, Installment Obligation Used as Security (Pledge Rule) Installment Sale, What Is an Installment Sale? Interest Escrow account, Escrow Account Income, Interest Income Reporting, Seller-financed mortgage. Freestatetaxreturn Unstated, Installment income after 2013. Freestatetaxreturn Interest on deferred tax, Interest on Deferred Tax Exceptions, Exceptions. Freestatetaxreturn L Like-kind exchange, Like-Kind Exchange N Note Buyer's, Buyer's note. Freestatetaxreturn Third-party, Third-party note. Freestatetaxreturn O Original issue discount, Installment income after 2013. Freestatetaxreturn P Payments considered received, Payments Received or Considered Received Buyer assumes debts, Buyer Assumes Other Debts Buyer pays seller's expenses, Buyer Pays Seller's Expenses Mortgage assumed, Buyer Assumes Mortgage Pledge rule, Installment Obligation Used as Security (Pledge Rule) Payments received, Payments Received or Considered Received Pledge rule, Installment Obligation Used as Security (Pledge Rule) Publications (see Tax help) R Related person Land sale, Land transfers between related persons. Freestatetaxreturn Reporting sale to, Related person. Freestatetaxreturn Sale to, Sale to a Related Person Reporting installment sale, Reporting Installment Sale Income, Reporting an Installment Sale Repossession, Repossession Holding period for resale, Holding period for resales. Freestatetaxreturn Personal property, Personal Property Real property, Real Property S Sale at a loss, Sale at a loss. Freestatetaxreturn Sale of Business, Sale of a Business Home, Sale of Your Home Land between related persons, Land transfers between related persons. Freestatetaxreturn Partnership interest, Sale of Partnership Interest Several assets, Single Sale of Several Assets, Several assets. Freestatetaxreturn Stock or securities, Stock or securities. Freestatetaxreturn Sales by dealers, Dealer sales. Freestatetaxreturn Section 1274, Section 1274 Exceptions, Exceptions to Sections 1274 and 483 Section 483, Section 483 Exceptions, Exceptions to Sections 1274 and 483 Selling expenses, Selling expenses. Freestatetaxreturn Selling price Defined, Selling price. Freestatetaxreturn Reduced, Selling Price Reduced Single sale of several assets, Single Sale of Several Assets, Several assets. Freestatetaxreturn T Tax help, How To Get Tax Help Third-party note, Third-party note. Freestatetaxreturn TTY/TDD information, How To Get Tax Help U Unstated interest, Installment income after 2013. Freestatetaxreturn Prev  Up     Home   More Online Publications