Following are a few examples you can use as a guide to figure the taxable part of your benefits.

Fully taxable pension	$18,600
Wages from part-time job	9,400
Taxable Interest income	990
Total	$28,990

Example 1. George also received social security benefits during 1999. The Form SSA-1099 he received in January 2000 shows $5,980 in box 5. To figure his taxable benefits, George completes the worksheet shown here. Worksheet 1. Social Security
and Equivalent Railroad Retirement
Benefits

Worksheet 1. Social Security
and Equivalent Railroad Retirement
Benefits

1.	Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099	5,980
Note. If line 1 is zero or less, stop here; none of your benefits are taxable. Otherwise, go on to line 2.
2.	Enter one-half of line 1	2,990
3.	Enter the total of the amounts from:
	Form 1040: Lines 7, 8a, 8b, 9-14, 15b, 16b, 17-19, and 21.
	Form 1040A: lines 7, 8a, 8b, 9, 10b, 11b, and 12	28,990
4.	Form 1040A filers: Enter the total of any exclusions for qualified U.S. savings bond interest (Form 8815, line 14) or for adoption benefits (Form 8839, line 30).
	Form 1040 filers: Enter the total of any exclusions/adjustments for:
	� Qualified U.S. savings bond interest (Form 8815, line 14),
	� Adoption benefits (Form 8839, line 30),
	� Foreign earned income or housing (Form 2555, lines 43 and 48, or Form 2555-EZ, line 18),
	� Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico	-0-
5.	Add lines 2, 3, and 4	31,980
6.	Form 1040A filers: Enter the amount from Form 1040A, line 15
	Form 1040 filers: Enter the amount from Form 1040, line 32, minus any amount on Form 1040, line 24	-0-
7.	Subtract line 6 from line 5	31,980
8.	Enter $25,000 ($32,000 if married filing jointly; $0 if married filing separately and you lived with your spouse at any time during 1999)	25,000
9.	Subtract line 8 from line 7. If zero or less, enter -0-	6,980
Note. If line 9 is zero or less, stop here; none of your benefits are taxable. (Do not enter any amounts on Form 1040, line 20a or 20b, or on Form 1040A, line 13a or 13b. But if you are married filing separately and you lived apart from your spouse for all of 1999, enter "D" to the left of line 20a, Form 1040, or to the right of the word "benefits" on line 13a, Form 1040A. Also enter -0- on Form 1040, line 20b or on Form 1040A, line 13b.) Otherwise, go on to line 10.
10.	Enter $9,000 ($12,000 if married filing jointly; $0 if married filing separately and you lived with your spouse at any time in 1999)	9,000
11.	Subtract line 10 from line 9. If zero or less, enter -0-	-0-
12.	Enter the smaller of line 9 or line 10	6,980
13.	Enter one-half of line 12	3,490
14.	Enter the smaller of line 2 or line 13	2,990
15.	Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-	-0-
16.	Add lines 14 and 15	2,990
17.	Multiply line 1 by 85% (.85)	5,083
18.	Taxable benefits. Enter the smaller of line 16 or line 17	2,990
	� Enter the amount from line 1 above on Form 1040, line 20a or on Form 1040A, line 13a.
	� Enter the amount from line 18 above on Form 1040, line 20b or on Form 1040A, line 13b

Example 2. Ray and Alice Hopkins file a joint return on Form 1040A for 1999. Ray is retired and received a fully taxable pension of $15,500. Ray also received social security benefits and his Form SSA-1099 for 1999 shows net benefits of $5,600 in box 5. Alice worked during the year and had wages of $14,000. She made a deductible payment to her IRA account of $1,000. Ray and Alice have two savings accounts with a total of $250 in interest income. They complete Worksheet 1 and find that none of Ray's social security benefits are taxable. They leave lines 13a and 13b of their Form 1040A blank. Worksheet 1. Social Security
and Equivalent Railroad Retirement
Benefits

Worksheet 1. Social Security
and Equivalent Railroad Retirement
Benefits

1.	Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099	5,600
Note. If line 1 is zero or less, stop here; none of your benefits are taxable. Otherwise, go on to line 2.
2.	Enter one-half of line 1	2,800
3.	Enter the total of the amounts from:
	Form 1040: Lines 7, 8a, 8b, 9-14, 15b, 16b, 17-19, and 21.
	Form 1040A: lines 7, 8a, 8b, 9, 10b, 11b, and 12	29,750
4.	Form 1040A filers: Enter the total of any exclusion for qualified U.S. savings bond interest (Form 8815, line 14) or adoption benefits (Form 8839, line 30).
	Form 1040 filers: Enter the total of any exclusions/adjustments for:
	� Qualified U.S. savings bond interest (Form 8815, line 14),
	� Adoption benefits (Form 8839, line 30),
	� Foreign earned income or housing (Form 2555, lines 43 and 48, or Form 2555-EZ, line 18), and
	� Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico	-0-
5.	Add lines 2, 3, and 4	32,550
6.	Form 1040A filers: Enter the amount from Form 1040A, line 15
	Form 1040 filers: Enter the amount from Form 1040, line 32, minus any amount on Form 1040, line 24	1,000
7.	Subtract line 6 from line 5	31,550
8.	Enter $25,000 ($32,000 if married filing jointly; $0 if married filing separately and you lived with your spouse at any time during 1999)	32,000
9.	Subtract line 8 from line 7. If zero or less, enter -0-	-0-
Note. If line 9 is zero or less, stop here; none of your benefits are taxable. (Do not enter any amounts on Form 1040, line 20a or 20b, or on Form 1040A, line 13a or 13b. But if you are married filing separately and you lived apart from your spouse for all of 1999, enter "D" to the left of line 20a, Form 1040, or to the right of the word "benefits" on line 13a, Form 1040A. Also enter -0- on Form 1040, line 20b or on Form 1040A, line 13b.) Otherwise, go on to line 10.
10.	Enter $9,000 ($12,000 if married filing jointly; $0 if married filing separately and you lived with your spouse at any time in 1999)
11.	Subtract line 10 from line 9. If zero or less, enter -0-
12.	Enter the smaller of line 9 or line 10
13.	Enter one-half of line 12
14.	Enter the smaller of line 2 or line 13
15.	Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-
16.	Add lines 14 and 15
17.	Multiply line 1 by 85% (.85)
18.	Taxable benefits. Enter the smaller of line 16 or line 17
	� Enter the amount from line 1 above on Form 1040, line 20a or on Form 1040A, line 13a.
	� Enter the amount from line 18 above on Form 1040, line 20b or on Form 1040A, line 13b

Example 3. Joe and Betty Johnson file a joint return on Form 1040 for 1999. Joe is a retired railroad worker and in 1999 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Joe's Form RRB-1099 shows $10,000 in box 5. Betty is a retired government worker and receives a fully taxable pension of $38,000. They had $2,300 in interest income plus interest of $200 on a qualified U.S. savings bond. The savings bond interest qualified for exclusion. They figure their taxable benefits by completing Worksheet 1.

Worksheet 1. Social Security
and Equivalent Railroad Retirement
Benefits

1.	Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099	10,000
Note. If line 1 is zero or less, stop here; none of your benefits are taxable. Otherwise, go on to line 2.
2.	Enter one-half of line 1	5,000
3.	Enter the total of the amounts from:
	Form 1040: Lines 7, 8a, 8b, 9-14, 15b, 16b, 17-19, and 21.
	Form 1040A: lines 7, 8a, 8b, 9, 10b, 11b, and 12	40,300
4.	Form 1040A filers: Enter the total of any exclusion for qualified U.S. savings bond interest (Form 8815, line 14) or adoption benefits (Form 8839, line 30).
	Form 1040 filers: Enter the total of any exclusions/adjustments for:
	� Qualified U.S. savings bond interest (Form 8815, line 14),
	� Adoption benefits (Form 8839, line 30),
	� Foreign earned income or housing (Form 2555, lines 43 and 48, or Form 2555-EZ, line 18), and
	� Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico	200
5.	Add lines 2, 3, and 4	45,500
6.	Form 1040A filers: Enter the amount from Form 1040A, line 15
	Form 1040 filers: Enter the amount from Form 1040, line 32, minus any amount on Form 1040, line 24	-0-
7.	Subtract line 6 from line 5	45,500
8.	Enter $25,000 ($32,000 if married filing jointly; $0 if married filing separately and you lived with your spouse at any time during 1999)	32,000
9.	Subtract line 8 from line 7. If zero or less, enter -0-	13,500
Note. If line 9 is zero or less, stop here; none of your benefits are taxable. (Do not enter any amounts on Form 1040, line 20a or 20b, or on Form 1040A, line 13a or 13b. But if you are married filing separately and you lived apart from your spouse for all of 1999, enter "D" to the left of line 20a, Form 1040, or to the right of the word "benefits "on line 13a, Form 1040A. Also enter -0- on Form 1040, line 20b or on Form 1040A, line 13b.) Otherwise, go on to line 10.
10.	Enter $9,000 ($12,000 if married filing jointly; $0 if married filing separately and you lived with your spouse at any time in 1999)	12,000
11.	Subtract line 10 from line 9. If zero or less, enter -0-	1,500
12.	Enter the smaller of line 9 or line 10	12,000
13.	Enter one-half of line 12	6,000
14.	Enter the smaller of line 2 or line 13	5,000
15.	Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-	1,275
16.	Add lines 14 and 15	6,275
17.	Multiply line 1 by 85% (.85)	8,500
18.	Taxable benefits. Enter the smaller of line 16 or line 17	6,275
	� Enter the amount from line 1 above on Form 1040, line 20a or on Form 1040A, line 13a.
	� Enter the amount from line 18 above on Form 1040, line 20b or on Form 1040A, line 13b.

Previous | Next

Publication 17 | 1999 Tax Year Archives | Tax Help Archives | Home