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Box 4 of Form 1099-INT will contain an • How to use the social security benefits Nonresident Alien Recipients of Payments by
amount if you were subject to backup withhold- worksheet (with examples). the Railroad Retirement Board. For information
ing. Include the amount from box 4 on Form • Deductions related to your benefits and about these benefits, see Pub. 519, U.S. Tax
1040 or 1040-SR, line 25b (federal income tax how to treat repayments that are more than Guide for Aliens; and Pub. 915, Social Security
withheld). the benefits you received during the year. and Equivalent Railroad Retirement Benefits.
Box 5 of Form 1099-INT shows investment This chapter also doesn’t cover the tax rules
expenses. See chapter 12 for more information Social security benefits include monthly re- for foreign social security benefits. These bene-
about investment expenses. tirement, survivor, and disability benefits. They fits are taxable as annuities, unless they are ex-
Box 6 of Form 1099-INT shows foreign tax don’t include Supplemental Security Income empt from U.S. tax or treated as a U.S. social
paid. You may be able to claim this tax as a de- (SSI) payments, which aren’t taxable. security benefit under a tax treaty.
duction or a credit on your Form 1040 or Equivalent tier 1 railroad retirement benefits
1040-SR. See your tax return instructions. are the part of tier 1 benefits that a railroad em- Useful Items
Box 7 of Form 1099-INT shows the country ployee or beneficiary would have been entitled You may want to see:
or U.S. possession to which the foreign tax was to receive under the social security system.
They are commonly called the social security
paid. equivalent benefit (SSEB) portion of tier 1 bene- Publication
U.S. savings bond interest previously re- fits. 505 505 Tax Withholding and Estimated Tax
ported. If you received a Form 1099-INT for If you received these benefits during 2020,
U.S. savings bond interest, the form may show you should have received a Form SSA-1099, 519 519 U.S. Tax Guide for Aliens
interest you don't have to report. See Form Social Security Benefit Statement; or Form 575 575 Pension and Annuity Income
1099-INT for U.S. savings bonds interest, ear- RRB-1099, Payments by the Railroad Retire-
lier. ment Board. These forms show the amounts re- 590-A 590-A Contributions to Individual
On Schedule B (Form 1040), Part I, line 1, ceived and repaid, and taxes withheld for the Retirement Arrangements (IRAs)
report all the interest shown on your Form year. You may receive more than one of these 915 915 Social Security and Equivalent
1099-INT. Then follow these steps. forms for the same year. You should add the Railroad Retirement Benefits
1. Several rows above line 2, enter a subtotal amounts shown on all the Forms SSA-1099 and
Forms RRB-1099 you receive for the year to
of all interest listed on line 1. determine the total amounts received and re- Forms (and Instructions)
2. Below the subtotal, enter “U.S. Savings paid, and taxes withheld for that year. See the 1040-ES 1040-ES Estimated Tax for Individuals
Bond Interest Previously Reported” and Appendix at the end of Pub. 915, Social Secur- SSA-1099 SSA-1099 Social Security Benefit
enter amounts previously reported or inter- ity and Equivalent Railroad Retirement Benefits, Statement
est accrued before you received the bond. for more information.
3. Subtract these amounts from the subtotal Note. When the term “benefits” is used in RRB-1099 RRB-1099 Payments by the Railroad
Retirement Board
and enter the result on line 2. this chapter, it applies to both social security
More information. For more information about benefits and the SSEB portion of tier 1 railroad W-4V W-4V Voluntary Withholding Request
how to report interest income, see chapter 1 of retirement benefits. For these and other useful items, go to IRS.gov/
Pub. 550 or the instructions for the form you my Social Security account. Social security Forms.
must file. beneficiaries may quickly and easily obtain in-
formation from the SSA's website with a my So- Are Any of Your
cial Security account to: Benefits Taxable?
• Keep track of your earnings and verify
them every year, To find out whether any of your benefits may be
7. • Get an estimate of your future benefits if taxable, compare the base amount (explained
later) for your filing status with the total of:
you are still working,
• Get a letter with proof of your benefits if 1. One-half of your benefits; plus
you currently receive them,
Social Security • Change your address, 2. All your other income, including tax-ex-
empt interest.
and Equivalent • Start or change your direct deposit, Exclusions. When making this comparison,
don’t reduce your other income by any exclu-
• Get a replacement Medicare card, and
Railroad • Get a replacement Form SSA-1099 for the sions for:
• Interest from qualified U.S. savings bonds,
tax season.
Retirement For more information and to set up an account, • Employer-provided adoption benefits,
go to SSA.gov/myaccount.
• Foreign earned income or foreign housing,
or
Benefits What isn’t covered in this chapter. This • Income earned by bona fide residents of
chapter doesn’t cover the tax rules for the fol-
lowing railroad retirement benefits. American Samoa or Puerto Rico.
• Non-social security equivalent benefit Children's benefits. The rules in this chapter
Introduction (NSSEB) portion of tier 1 benefits. apply to benefits received by children. See Who
is taxed, later.
This chapter explains the federal income tax • Tier 2 benefits. Figuring total income. To figure the total of
rules for social security benefits and equivalent • Vested dual benefits. one-half of your benefits plus your other in-
tier 1 railroad retirement benefits. It explains the • Supplemental annuity benefits. come, use Worksheet 7-1, discussed later. If
following topics. For information on these benefits, see Pub. the total is more than your base amount, part of
• How to figure whether your benefits are 575, Pension and Annuity Income. your benefits may be taxable.
taxable. This chapter doesn’t cover the tax rules for If you are married and file a joint return for
• How to report your taxable benefits. social security benefits reported on Form 2020, you and your spouse must combine your
SSA-1042S, Social Security Benefit Statement; incomes and your benefits to figure whether any
or Form RRB-1042S, Statement for of your combined benefits are taxable. Even if
Chapter 7 Social Security and Equivalent Railroad Retirement Benefits Page 61