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Social Security &RR Retirement Tier 1 (Blue Form)

Module NJ 1.14

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Tax On Social Security & RR Retirement Tier 1 Up to 85% of benefits can be taxable

May be taxable if one-half of social security plus all other income (including tax-exempt interest) is greater than: $32,000 MFJ $25,000 single, HOH or qualified widow $25,000 MFS/lived apart all year $0 MFS/lived together any part of year

Railroad Retirement Tier 1 – Blue Form (Pub 915) RRB-1099 Same Rules as Social Security

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Social Security & Equivalent Railroad Retirement Benefits

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SS & RR Tier 1 Tax Wise 1040 Income Worksheet 1

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Lump Sum Social Security Payments For Prior Years SSA-1099A, Box 3

This section is intended for counselors trained in Lump Sum Social Security Payments

Not as difficult as it appears in TaxWise

Must have copies of prior years returns

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1099-SSA With Lump Sum

Total from Box 5 = $33,996

Amount for 2006 = $12,948

Amount for 2005 = $5,190

Therefore, the amount for 2007 would be $15,858

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Start With 1040 Wkt1

In TaxWise, at the bottom of 1040 Wkt1 you’ll see “Lump Sum Payment.”

Enter $15,858 for taxpayer then click here and F9 for worksheet

2008

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Blank Worksheet

2006

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Completed Worksheet – 2006

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Completed Worksheet – 2005

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Comparison $10,536 vs $3, 516

Taxable SS without using Lump Sum Worksheet

Taxable SS using Lump Sum Worksheet

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Tips

Taxpayer must have copies of previous year return(s)

Be sure to enter any SS income received in previous year

Be sure to check previous return for any tax-exempt interest (Line 8b)