Introduction
This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement
benefits. It is
prepared through the joint efforts of the Internal Revenue Service, the Social Security Administration (SSA), and the U.S.
Railroad Retirement Board
(RRB).
Social security benefits include monthly survivor and disability benefits. They do not include
supplemental security income (SSI) payments, which are not taxable.
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. They are commonly called the
social security equivalent
benefit (SSEB) portion of tier 1 benefits.
If you received these benefits during 2004, you should have received a Form SSA-1099, Social Security Benefit Statement, or
Form RRB-1099, Payments
by the Railroad Retirement Board, (Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident
Alien Recipients
of: Payments by the Railroad Retirement Board, if you are a nonresident alien) showing the amount.
Note.
When the term “benefits” is used in this publication, it applies to both social security benefits and the SSEB portion of tier 1 railroad
retirement benefits.
What is covered in this publication.
This publication covers the following topics:
-
Whether any of your benefits are taxable,
-
How much is taxable,
-
How to report taxable benefits,
-
How to treat lump-sum benefit payments, and
-
Deductions related to your benefits, including a deduction you can claim if your repayments are more than your gross benefits.
The
Appendix at the end of this publication explains items shown on your Form SSA-1099, SSA-1042S, RRB-1099, or RRB-1042S.
What is not covered in this publication.
This publication does not cover the tax rules for the following railroad retirement benefits:
-
Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits,
-
Tier 2 benefits,
-
Vested dual benefits, and
-
Supplemental annuity benefits.
For information on these taxable pension benefits, see Publication 575, Pension and Annuity Income.
This publication also does not cover the tax rules for foreign social security benefits. These benefits are taxable
as annuities, unless they are
exempt from U.S. tax or treated as a U.S. social security benefit under a tax treaty.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in
your correspondence.
You can email us at
*[email protected]. (The asterisk must be included in the
address.) Please put “
Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your
feedback and will consider your comments as we revise our tax products.
Tax questions.
If you have a tax question, visit
www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either
of the addresses listed above.
Ordering forms and publications.
Visit
www.irs.gov/formspubs
to download forms and publications, call 1-800-829-3676, or write to one of the three addresses shown under
How To Get Tax Help in the back
of this publication.
