Publication 915 |
2001 Tax Year |
Appendix
This appendix explains items shown on Form SSA-1099 and Form
RRB-1099. Forms SSA-1042S and RRB-1042S, for
nonresident aliens, contain the same items plus a few additional ones.
These are also explained.
The illustrated versions of Forms SSA-1099, SSA-1042S,
RRB-1099, and RRB-1042S in this appendix are proof copies of the
forms as they appeared when this publication went to print. The
information on the illustrated forms should be essentially the same as
the information on the form you received from either the SSA or the
RRB. You should, however, compare the form you received with the one
shown in this publication to note any differences.
Form SSA-1099
Every person who received social security benefits will receive a
Form SSA-1099. If you receive benefits on more than one social
security record, you may get more than one Form SSA-1099. IRS
Notice 703 will be enclosed with this form. It contains a worksheet to
help you figure if any of your benefits are taxable. Do not mail
Notice 703 to either the IRS or the SSA.
Box 1--Name
The name shown in this box refers to the person for whom the social
security benefits shown on the statement were paid. If you received
benefits for yourself, your name will be shown.
Box 2--Beneficiary's Social Security Number
This is the U.S. social security number, if known, of the person
named in box 1.
In all your correspondence with the SSA, be sure to use the claim
number shown in box 8.
Box 3--Benefits Paid in 2001
The figure shown in this box is the total benefits paid in 2001 to
you (the person named in box 1). This figure may not agree with the
amounts you actually received because adjustments may have been made
to your benefits before you received them. An asterisk (*) after the
figure shown in this box means that it includes benefits received in
2001 for one or more earlier years.
Description of Amount in Box 3
This part of the form describes the items included in the amount
shown in box 3. It lists the benefits paid and any adjustments made.
Only the adjustments that apply to you will be shown. If no
adjustments were made to the benefits paid, the word "none" will
be shown.
Paid by check or direct deposit.
This is the amount you actually received or that was deposited
directly into your account in a financial institution in 2001.
Additions.
The following adjustment items may have been deducted from your
benefits in 2001. If amounts appear on your Form SSA-1099 next
to these items, they will be added to the amount shown in "Paid by
check or direct deposit."
Do not reduce the amount of net social security benefits (box 5) by
any of the items listed below. Use the amount in box 5 to figure
taxable social security.
Medicare premiums deducted from your benefit.
If you have Medicare premiums deducted from your benefits, this is
the amount withheld during 2001. The basic monthly premium in 2001 was
$50, but it could be higher if you enrolled after you were first
eligible or if you had a break in coverage.
Workers' compensation offset.
If you are disabled and receive workers' compensation or Part C
Black Lung payments, your benefits are subject to a payment limit. An
entry will be shown here if your benefits were reduced to stay within
this limit. An entry will also be shown here if your benefits were
reduced because the person on whose social security record you were
paid is disabled and also received workers' compensation or Part C
Black Lung payments.
Paid to another family member.
This entry shows total payments withheld from your benefits if you
are required to pay child support or alimony.
Deductions for work or other adjustments.
Amounts withheld from your benefits because of work or to recover
an overpayment of any type of benefit are benefits paid to you and
will be shown here. They also may be treated as benefits repaid to SSA
and included in the amount in box 4.
Attorney fees and/or SSI offset.
If you had an attorney handle your social security claim, the
figure shown here is the fee withheld from your benefits and paid
directly to your attorney.
Part of a person's supplemental security income (SSI) payments is
withheld if that person also receives social security benefits. When a
person applies for both social security benefits and SSI payments, the
SSI payments may sometimes be made before a decision on the person's
social security claim is made. After the person is found eligible for
social security benefits, the amount that should have been withheld
from the SSI payments is deducted from the social security benefits.
This amount is considered part of your social security benefits. An
entry here means that an amount was deducted from your social security
benefits to recover part of your SSI payments.
Voluntary federal income tax withheld.
This shows the total amount of federal income tax withheld from
your benefits. Include this amount on your income tax return as tax
withheld.
Benefit payment offset--Treasury.
Part of your Title II Social Security benefit may be withheld on
behalf of the Treasury Department to recover debts you owe to other
federal agencies.
Total Additions.
The figure shown here is the sum of the amounts paid by check or
direct deposit plus all the additions described previously.
Subtractions.
The following adjustment items may have been included in the
payments you received in 2001. If amounts appear on your Form
SSA-1099 next to these items, they will be subtracted from the
figure in Total Additions.
Payments for months before December 1983.
The figure shown here is the amount of benefits you received in
2001 that was for months before December 1983. These benefits are not
taxable no matter when they are paid.
Lump-sum death payment.
The lump-sum death payment is not subject to tax. An entry here
means you received this kind of payment in 2001.
Amounts refunded to you.
The amount shown here may include Medicare premiums you paid in
excess of the amount actually due. It also may include amounts
withheld in 2000 to pay your attorney in excess of the fee actually
paid.
Nontaxable payments.
This entry shows nontaxable payments such as lump-sum death
payments.
Amounts paid to you for other family members.
This entry shows benefit payments paid to you on behalf of a minor
child or disabled adult.
Total Subtractions.
The figure shown here is the sum of all the subtractions described
previously.
Benefits for 2001.
The amount shown here is the result of subtracting the figure in
Total Subtractions from the figure in Total Additions.
This amount is the same as that shown in box 3.
*Box 3 includes $
___paid in 2001 for 2000, 1999, and other tax years.
The figure shown here is the amount of any lump-sum benefit payment
received in 2001 that is for an earlier year after 1983. See
Lump-Sum Election, earlier, for a full discussion on how
these payments are handled.
Box 4--Benefits Repaid to SSA in 2001
The figure shown in this box is the total amount of benefits you
repaid to SSA in 2001.
Description of Amount in Box 4
This part of the form describes the items included in the amount
shown in box 4. It lists the amount of benefit checks you returned to
SSA and any adjustments for other types of repayments. The amounts
listed include all amounts repaid in 2001, no matter when the benefits
were received. Only the repayments that apply to you will be shown. If
you did not make any repayments, the word "none" will be shown.
Checks returned to SSA.
If any of your benefit checks were returned to SSA, the total is
shown here.
Deductions for work or other adjustments.
If any amounts were withheld from your benefits because of work or
to recover an overpayment of retirement, survivors, or disability
benefits, the total will be shown here. This may also be shown as
Deductions for work or other adjustments under
Description of Amount in Box 3.
Other repayments.
This is the amount you repaid to SSA by direct remittance.
Benefits Repaid to SSA in 2001.
The amount shown here is the sum of all your repayments. This total
is the same as that shown in box 4.
Box 5--Net Benefits for 2001 (Box 3 minus Box 4)
The figure in this box is the net benefits paid to you for the
year. It is the result of subtracting the figure in box 4 from the
figure in box 3. Enter this amount on line A of IRS Notice 703, or on
line 1 of Worksheet 1, shown earlier, or on the worksheet
in either the Form 1040 or 1040A instruction package.
If parentheses are around the figure in box 5, it means that the
figure in box 4 is larger than the figure in box 3. This is a negative
figure and means you repaid more money than you received in 2001. If
you have any questions about this negative figure, contact your local
SSA office. For more information, see Repayments More Than Gross
Benefits, earlier.
ssa-1042s
Box 6--Voluntary Federal Income Tax Withheld
This shows the total amount of federal income tax withheld from
your benefits. Include this amount on your income tax return as tax
withheld.
Form SSA-1042S
(Nonresident Aliens)
This form is for nonresident aliens. It contains the following four
additional items that do not appear on Form SSA-1099.
Box 6--Rate of Tax
This is the rate at which tax was withheld from 85% of your
benefits. If tax was withheld at more than one rate during the year,
the percentage shown will be the tax rate in December 2001. The tax
rate for most nonresident aliens is 30%. If you are a resident of
Switzerland, 85% of your benefits are taxed at a 15% rate. The figure
"0" will appear in this box if you were not taxed in December or
if you were exempt under a tax treaty. Benefits received by residents
of Canada, Egypt, Germany, Ireland, Israel, Italy, Japan, Romania, and
the United Kingdom are exempt from U.S. tax.
Under a treaty with India, benefits paid to individuals who are
both residents and nationals of India are exempt from U.S. tax if the
benefits are for services performed for the United States, its
subdivisions, or local government authorities. See Publication 519
for
more information on nonresident aliens.
Box 7--Amount of Tax Withheld
This is the amount of tax taken out of your social security checks.
Tax is withheld for any month in which you were a nonresident alien
(unless you were exempt under a tax treaty).
Box 8--Amount of Tax Refunded
An amount in this block shows any tax SSA refunded to you. When SSA
withholds tax from your checks by mistake, they try to return it to
you during the same calendar year. If SSA is unable to send the refund
to you before the year ends, you must file a federal income tax return
to get a refund of this tax.
Box 9--Net Tax Withheld During 2001
The figure in this box is the result of subtracting the figure in
box 8 from the figure in box 7. This is the net amount of tax withheld
from your benefits.
Form RRB-1099
This section explains the items shown on Form RRB-1099. Form
RRB-1099 is issued to citizens and residents of the United
States. If you received, repaid, or had tax withheld from the social
security equivalent benefit (SSEB) portion of tier 1 railroad
retirement benefits or special guaranty benefits during 2001 you will
receive Form RRB-1099,
If you received, repaid, or had tax withheld from any non-social
security equivalent benefit (NSSEB) portion of tier 1, tier 2, vested
dual benefits or supplemental annuity benefits during 2001, you will
receive Form RRB-1099-R, Annuities or Pensions by the
Railroad Retirement Board. For more information concerning Form
RRB-1099-R, see Publication 575.
Each beneficiary will receive his or her own Form RRB-1099.
If you receive benefits on more than one railroad retirement record,
you may get more than one Form RRB-1099.
Box 1--Claim Number and Payee Code
Your RRB claim number is a six- or nine-digit number preceded by an
alphabetical prefix and is the number under which the SSEB portion of
tier 1 benefits was paid. Your payee code is the number following your
claim number and is used by the RRB to identify you under your claim
number. In all your contacts with the RRB, be sure to use the claim
number and payee code shown in this box.
Box 2--Recipient's Identification Number
This is the U.S. social security number (SSN), individual taxpayer
identification number (ITIN), or employer identification number (EIN),
if known, for the person or estate listed as the recipient.
Box 3--Gross Social Security Equivalent Benefit Portion
of Tier 1 Paid in 2001
The figure shown in this box is the gross SSEB portion of tier 1
benefits or special guaranty benefits paid to you in 2001. It is the
amount before any deductions were made for:
- Federal income tax withholding,
- Medicare premiums,
- Legal Process Garnishment payments,
- Legal Process Assignment payments,
- Recovery of an overpayment, including recovery of Railroad
Unemployment Insurance Act benefits received while awaiting payment of
your railroad retirement annuity, and
- Workers' compensation offset (explained in the description
of box 6, later).
The figure in box 3 is the amount after any
deductions were made for:
- Work deductions,
- Actuarial adjustment,
- Annuity waiver, and
- Legal Process Partition payments.
Social security benefits paid through the RRB are not
reported on Form RRB-1099 or RRB-1042S. They are reported
on Form SSA-1099 or Form SSA-1042S.
Example 1.
For the period January through March 2001, you received $300 ($100
x 3 months) Railroad Unemployment Insurance. You were eligible for the
SSEB portion of tier 1 benefits of $509 a month beginning January 1,
2001, but you did not receive your first payment until April 2001. The
payment you received in April was for the first three months of 2001.
However, because you received unemployment benefits during the same
period, $300 was deducted from your initial benefit payment. Instead
of receiving $1,527 ($509 x 3 months), you received $1,227
($1,527- $300). For the months of April through November, you
were paid your regular monthly SSEB portion of tier 1 benefits of
$509. Box 3 of your Form RRB-1099 will show $5,599 ($509 ×
11 months) as the gross SSEB portion of tier 1 benefits paid to you in
2001, even though you did not actually receive that amount. This is
because box 3 shows the gross amount of your benefits before
any reductions were made for the unemployment benefits paid to
you.
Example 2.
You received tier 1 benefits of $600 a month for the months of
December 2000 through May 2001. Your $600 monthly tier 1 benefit
consists of an SSEB portion of $250 and a non-social security
equivalent benefit (NSSEB) portion of $350. Beginning in June 2001,
you became entitled to Medicare, and $50 a month was deducted from
your benefit checks for Medicare premiums. Therefore, the tier 1
payments you received for the rest of the year were $550 ($600 -
$50) a month. Box 3 of your Form RRB-1099 will show the gross
SSEB portion of tier 1 benefits of $3,000 ($250 × 12 months),
because it is the gross SSEB amount before deductions for
your Medicare premiums. Box 11 of your Form RRB-1099 will show
your Medicare premiums of $300 ($50 × 6 months) deducted from
June through November 2001. The remainder of your tier 1 payments, the
NSSEB portion of $4,200 ($350 × 12 months), will be shown on the
Form RRB-1099-R that you will receive along with your Form
RRB-1099. The $4,200 is the gross NSSEB amount before
deductions for your Medicare premiums. (The Medicare
Premium Total box shown on your Form RRB-1099-R will
be blank since the Medicare total will be shown in box 11 of your Form
RRB-1099.) For more information on Form RRB-1099-R,
see Publication 575.
rrb-1099
Benefits paid for earlier years.
The figure in box 3 includes any lump-sum benefit payment you
received in 2001 that is for an earlier year after 1983. If you
received a payment for an earlier year, it will be shown in box 7, 8,
or 9 (described later). See Lump-Sum Election, earlier, for
information on how to treat the payment.
Box 4--Social Security Equivalent Benefit Portion of
Tier 1 Repaid to RRB in 2001
The figure shown in this box is the total SSEB portion of tier 1
benefits you repaid to the RRB in 2001. You may have repaid a benefit
by returning a payment, making a cash refund, or having an amount
withheld from your payments. In addition, an amount may have been
withheld from your benefits to recover the SSEB overpayment incurred
by someone else who is also receiving benefits under your claim
number. Also, an amount may have been withheld from another benefit,
such as a social security benefit, to recover an SSEB overpayment you
received.
The amount in box 4 also includes any SSEB benefits you repaid in
2001 that were for 2001 or for one or more years before
2001. All tier 1 repayments for years before 1986 are treated entirely
as SSEB benefits.
Example 1.
You returned to work for your last railroad employer for the months
of June through August 2001. The SSEB portion of your tier 1 benefit
was $450 for each of those months. Since you are not allowed to
receive benefits for any month you returned to railroad service, you
have to make a repayment to the RRB. You returned the benefit payment
for June through August 2001. Box 4 of your Form RRB-1099 will
show $1,350 ($450 x 3 months) as the SSEB portion of tier 1 benefits
you repaid to the RRB.
Example 2.
From January through April 2001 you were overpaid $800 in the SSEB
portion of tier 1 benefits. From May through August 2001, $200 a month
was withheld from your benefit payment to fully recover the $800
overpayment. Box 4 of your Form RRB-1099 will show $800 ($200 x
4 months) as the SSEB portion of tier 1 benefits you repaid to the
RRB.
Example 3.
As a retired railroad employee, you have been receiving a railroad
retirement annuity, including an SSEB portion of tier 1 benefits,
since 2000. You also became entitled to, and received from the SSA, a
social security benefit of $300 a month beginning May 1, 2001. SSA
later authorized the RRB to pay that benefit. In August 2001, the RRB
began paying your social security benefit to you and reduced the SSEB
portion of your monthly tier 1 benefit by $300. Social security
benefits of $900 ($300 × 3 months) covering the period May
through July 2001 were kept by the RRB to offset your $900 SSEB
overpayment for that same period. Box 4 of your Form RRB-1099
will show $900 as the SSEB portion of tier 1 benefits you repaid to
the RRB. (Note. SSA will send you Form SSA-1099,
which will include the $900 in benefits paid by them for the months of
May through July 2001.)
Box 5--Net Social Security Equivalent Benefit Portion of
Tier 1 Paid in 2001
The figure shown in this box is the net amount of the SSEB portion
of tier 1 benefits paid to you in 2001. It is the result of
subtracting the amount in box 4 from the amount in box 3. If you
received more than one Form RRB-1099 for 2001, you should add
the amounts in box 5 of all Forms RRB-1099 to
determine your net amount of SSEB payments for 2001. Use this amount
to determine if any of your benefits are taxable. See Are Any of
Your Benefits Taxable, earlier.
If parentheses are around the figure in box 5, it means that the
figure in box 4 is larger than the figure in box 3. This is a negative
figure and means you repaid more money than you received in 2001. For
more information, see Repayments More Than Gross Benefits,
earlier.
Box 6--Workers' Compensation Offset in 2001
The figure shown in this box is the amount you received in workers'
compensation benefits during the year that was used to offset the full
amount of your tier 1 payments. The SSEB portions of your tier 1
benefits shown in boxes 3 and 5 include amounts by which your SSEB
payments were reduced for workers' compensation benefits. Your
workers' compensation amount is shown in this box separately only for
your information. If you did not receive workers' compensation
benefits, box 6 is blank.
Example.
For 2001, your tier 1 benefit of $450 a month is reduced to $400
because of a $50-a-month workers' compensation offset. Boxes 3 and 5
of your Form RRB-1099 will show $5,400 ($450 × 12 months)
as the SSEB portion of tier 1 benefits paid to you by the RRB. The
$5,400 is the amount before any deductions were made for
the workers' compensation offset. Box 4 will show zero because you did
not make any repayments during the year. Box 6 of your form will show
$600 ($50 workers' compensation × 12 months). In figuring if any
of your benefits are taxable, you must use $5,400 (box 5) as the
amount of the SSEB portion of tier 1 benefits paid to you.
Boxes 7 and 8--Social Security Equivalent Benefit
Portion of Tier 1 Paid for 2000 or 1999
The figure shown in each applicable box is the amount of SSEB
benefits paid to you in 2001 that was for 2000 or 1999. This amount is
included in the amount shown in box 3.
Box 9--Social Security Equivalent Benefit Portion of
Tier 1 Paid for Years Prior to 1999
The figure shown in this box is the amount of SSEB benefits paid to
you in 2001 that was for 1998 and earlier years after 1983. This
amount is included in the amount shown in box 3. Any tier 1 benefit
paid for a period before 1986 is treated as SSEB.
Box 10--Federal Income Tax Withheld
The figure shown in this box is the total amount of U.S. federal
income tax withheld on your tier 1 SSEB payments. This total is based
on the amount of SSEB tax withholding requested on IRS Form
W-4V, Voluntary Withholding Request. Include this
amount on your income tax return as tax withheld.
In some cases, a tax withholding amount may be shown in this box
even though you did not request SSEB tax withholding. This may happen
if you previously had taxes withheld from your pension payments
(NSSEB, tier 2, and/or vested dual benefit), but the taxability of
those payments has since changed. In these cases, the tax withholding
amount is applied to the SSEB since that is your only taxable
component.
Box 11--Medicare Premium Total
This is for information purposes only. This is the total amount of
Part B Medicare premiums deducted from your railroad retirement
annuity payments shown on your Form RRB-1099 for 2001. Medicare
premium refunds are not included in this total. The Medicare total is
normally shown on Form RRB-1099. However, if Form RRB-1099
is not required for your 2001 taxes, then this total will be shown on
Form RRB-1099-R. Medicare premiums deducted from your
social security benefits, paid by a third party, or paid by direct
billing will not be shown in this box.
rrb-1042S
Form RRB-1042S
(Nonresident Aliens)
This form is for nonresident aliens. It contains the following four
additional items that do not appear on Form RRB-1099.
Note.
If your country of legal residence changed or your tax withholding
rate changed during the year, you may receive more than one Form
RRB-1042S. To determine your total amounts for the year, you
should add the amounts shown on all Forms RRB-1042S you received
for that year.
Box 10--Country
The country where you maintain your legal residence is shown in
this box. If you maintained legal residence in more than one country
during the year, you will receive a separate Form RRB-1042S for
each country of legal residence during the year.
Box 11--Rate of Tax
The figure in this box is the rate at which tax was withheld from
85% of the SSEB portion of tier 1 payments you received. If tax was
withheld at more than one rate during the year, you will receive a
separate Form RRB-1042S for each rate change during the year.
The tax rate for most nonresident aliens is 30%. The figure "0%"
or "15%" may appear in this box if you claimed a tax treaty
exemption. Benefits received by residents of Canada, Egypt, Germany,
Ireland, Israel, Italy, Japan, Romania, and the United Kingdom are
exempt from U.S. tax. If you are a resident of Switzerland, 85% of
your benefits are taxed at a 15% rate.
Under a treaty with India, benefits paid to individuals who are
both residents and nationals of India are exempt from U.S. tax if the
benefits are for services performed for the United States, its
subdivisions, or local government authorities. See Publication 519
for
more information on nonresident aliens.
Box 12--Federal Tax Withheld
The figure in this box is the total amount of U.S. federal income
tax withheld from the SSEB portion of your tier 1 payments while you
were a legal resident of the country in box 10 in 2001. If you
received more than one Form-1042S for 2001, add the amounts in
box 12 of all Forms-1042S to determine your total
amount of U.S. federal income tax withheld from SSEB payments for
2001. Tax is withheld for any month in which you were a nonresident
alien (unless you claimed exemption under a tax treaty).
Box 13--Medicare Premium Total
This is for information purposes. This is the total amount of Part
B Medicare premiums deducted from your railroad retirement annuity
payments shown on your Form RRB-1042S for 2001. Medicare premium
refunds are not included in this total. The Medicare total is normally
shown on Form RRB-1042S. However, if Form RRB-1042S is not
required for your 2001 taxes, then this total will be shown on Form
RRB-1099-R. Medicare premiums deducted from your social
security benefits, paid by a third party, or paid by direct billing
will not be shown in this box.
You should contact your nearest RRB field office (if you reside in
the United States) or U.S. consulate/embassy (if you reside outside of
the United States) for assistance with your RRB tax statement
inquiries. If you have any questions about how to figure your taxable
payments or what amounts to show on your income tax returns, contact
your own tax preparer or the IRS. You may visit the RRB on the
Internet at www.rrb.gov.
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