Page 66 - 2020 Publication 17

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your spouse didn’t receive any benefits, you 14:38 - 19-Jan-2021
must add your spouse's income to yours to fig- Worksheet 7-1. A Quick Way To Check if Filled-in Worksheet 7-1. A Quick Way To
ure whether any of your benefits are taxable. Your Benefits May Be Taxable Check if Your Benefits May Be Taxable
If the only income you received during Note. If you plan to file a joint income tax return, Note. If you plan to file a joint income tax return,
TIP 2020 was your social security or the include your spouse's amounts, if any, on lines include your spouse's amounts, if any, on lines
SSEB portion of tier 1 railroad retire- A, C, and D. A, C, and D.
ment benefits, your benefits generally aren’t
taxable and you probably don’t have to file a re- A. Enter the amount from A. Enter the amount from
turn. If you have income in addition to your ben- box 5 of all your Forms box 5 of all your Forms
efits, you may have to file a return even if none SSA-1099 and RRB-1099. SSA-1099 and RRB-1099.
of your benefits are taxable. See Do I Have To Include the full amount of Include the full amount of
File a Return? in chapter 1, earlier; Pub. 501, any lump-sum benefit any lump-sum benefit
Dependents, Standard Deduction, and Filing In- payments received in 2020, payments received in 2020,
formation; or your tax return instructions to find for 2020 and earlier years. for 2020 and earlier years.
out if you have to file a return. (If you received more than (If you received more than
one form, combine the one form, combine the
Base amount. Your base amount is: amounts from box 5 and A. amounts from box 5 and A. $8,200
.
.
.
.
enter the total.) .
.
.
enter the total.) .
.
.
.
.
.
.
• $25,000 if you are single, head of house- Note. If the amount on line A is zero or less, Note. If the amount on line A is zero or less,
hold, or qualifying widow(er); stop here; none of your benefits are taxable this stop here; none of your benefits are taxable this
• $25,000 if you are married filing separately year. year.
and lived apart from your spouse for all of B. Multiply line A by 50% B. Multiply line A by 50%
2020; (0.50) . . . . . . . . . . . . . B. (0.50) . . . . . . . . . . . . . B. 4,100
• $32,000 if you are married filing jointly; or C. Enter your total income that C. Enter your total income that
• $0 if you are married filing separately and is taxable (excluding line A), is taxable (excluding line
lived with your spouse at any time during such as pensions, wages, A), such as pensions,
2020. interest, ordinary dividends, wages, interest, ordinary
Worksheet 7-1. You can use Worksheet 7-1 to and capital gain dividends, and capital gain
distributions. Don’t reduce
distributions. Don’t reduce
figure the amount of income to compare with your income by any your income by any
your base amount. This is a quick way to check deductions, exclusions deductions, exclusions
whether some of your benefits may be taxable. (listed earlier), or (listed earlier), or
exemptions . . . . . . . . . . C. exemptions . . . . . . . . . . C. 27,500
D. Enter any tax-exempt D. Enter any tax-exempt
interest income, such as interest income, such as
interest on municipal interest on municipal
bonds . . . . . . . . . . . . . D. bonds . . . . . . . . . . . . D. -0-
E. Add lines B, C, and D . . . E. E. Add lines B, C, and D . . . E. $31,600
Note. Compare the amount on line E to your Note. Compare the amount on line E to your
base amount for your filing status. If the base amount for your filing status. If the
amount on line E equals or is less than the base amount on line E equals or is less than the base
amount for your filing status, none of your amount for your filing status, none of your
benefits are taxable this year. If the amount on benefits are taxable this year. If the amount on
line E is more than your base amount, some of line E is more than your base amount, some of
your benefits may be taxable and you will need your benefits may be taxable and you will need
to complete Worksheet 1 in Pub. 915 (or the to complete Worksheet 1 in Pub. 915 (or the
Social Security Benefits Worksheet in your tax Social Security Benefits Worksheet in your tax
form instructions). If none of your benefits are form instructions). If none of your benefits are
taxable, but you otherwise must file a tax return, taxable, but you otherwise must file a tax return,
see Benefits not taxable, later, under How To see Benefits not taxable, later, under How To
Report Your Benefits. Report Your Benefits.
Example. You and your spouse (both over Who is taxed. Benefits are included in the tax-
65) are filing a joint return for 2020 and you both able income (to the extent they are taxable) of
received social security benefits during the the person who has the legal right to receive the
year. In January 2021, you received a Form benefits. For example, if you and your child re-
SSA-1099 showing net benefits of $5,700 in ceive benefits, but the check for your child is
box 5. Your spouse received a Form SSA-1099 made out in your name, you must use only your
showing net benefits of $2,500 in box 5. You part of the benefits to see whether any benefits
also received a taxable pension of $26,800 and are taxable to you. One-half of the part that be-
interest income of $700. You didn’t have any longs to your child must be added to your
tax-exempt interest income. Your benefits aren’t child's other income to see whether any of
taxable for 2020 because your income, as fig- those benefits are taxable to your child.
ured in Worksheet 7-1, isn’t more than your Repayment of benefits. Any repayment of
base amount ($32,000) for married filing jointly. benefits you made during 2020 must be sub-
Even though none of your benefits are taxa- tracted from the gross benefits you received in
ble, you must file a return for 2020 because 2020. It doesn’t matter whether the repayment
your taxable gross income ($27,500) exceeds was for a benefit you received in 2020 or in an
the minimum filing requirement amount for your earlier year. If you repaid more than the gross
filing status. benefits you received in 2020, see Repayments
More Than Gross Benefits, later.

Page 62 Chapter 7 Social Security and Equivalent Railroad Retirement Benefits