Publication 915 - Social Security And Equivalent Railroad Retirement Benefits - Internal Revenue Service - 2001 Page 8
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28Example 3.
Joe and Betty Johnson file a joint return on Form 1040 for 2001. Joe is a retired railroad worker and in 2001 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 received 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 the
exclusion. Thus, they have a total income of $40,300 ($38,000 + $2,300). They figure their taxable benefits by completing
Worksheet 1 below. More than 50% of Joe’s net benefits are taxable because the income on line 7 of the worksheet
($45,500) is more than $44,000. (See Maximum taxable part under How Much Is Taxable earlier.) Joe and Betty enter
$10,000 on line 20a, Form 1040, and $6,275 on line 20b, Form 1040.
Filled-in Worksheet 1. Figuring Your Taxable Benefits
Before you start: Is your filing status Married filing separately?
No. Go to line 1 below.
Yes. Did you live apart from your spouse all year?
No. Go to line 1 below.
Yes. Do the following if you file:
Form 1040: Enter “D” to the left of line 20a, then go to line 1 below.
Form 1040A: Enter “D” to the right of the word “benefits” on line 14a, then go to line 1 below.
10,000
1.
Enter the total amount from box 5 of ALL your Forms SSA–1099 and RRB–1099
1.
Note: If line 1 is zero or less, stop here; none of your benefits are taxable.
Otherwise, go on to line 2.
5,000
Enter one-half of line 1
2.
2.
Enter the total of the amounts from:
3.
Form 1040: Lines 7, 8a, 8b, 9-14, 15b, 16b, 17-19, and 21.
40,300
Form 1040A: Lines 7, 8a, 8b, 9, 10, 11b, 12b, and 13
3.
Form 1040A filers: Enter the total of any exclusions for qualified U.S. savings bond interest
4.
(Form 8815, line 14) or for adoption benefits (Form 8839, line 26)
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 26)
● 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
4.
45,500
Add lines 2, 3, and 4
5.
5.
Form 1040A filers: Enter the amount from Form 1040A, line 16. Form 1040 filers: Enter the
6.
-0-
amount from Form 1040, line 32, minus any amount on Form 1040, line 24
6.
45,500
Subtract line 6 from line 5
7.
7.
8.
Enter $25,000 ($32,000 if married filing jointly; $0 if married filing separately and you lived with
32,000
your spouse at any time during 2001)
8.
13,500
Subtract line 8 from line 7. If zero or less, enter -0-
9.
9.
Note: If line 9 is zero or less, stop here; none of your benefits are taxable. ( Do not enter any
amounts on For m 1040, line 20a or 20b, or on For m 1040A, line 14a or line 14b. But if you are
marr ied filing separately and you lived apart from your spouse for all of 2001, enter -0- on Form
1040, line 20b, or on For m 1040A, line 14b. ) 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
12,000
your spouse at any time during 2001)
10.
1,500
11.
Subtract line 10 from line 9. If zero or less, enter -0-
11.
12,000
Enter the smaller of line 9 or line 10
12.
12.
6,000
13.
Enter one-half of line 12
13.
5,000
Enter the smaller of line 2 or line 13
14.
14.
1,275
15.
Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-
15.
6,275
Add lines 14 and 15
16.
16.
8,500
17.
Multiply line 1 by 85% (.85)
17.
6,275
Taxable benefits. Enter the smaller of line 16 or line 17
18.
18.
● Enter the amount from line 1 above on Form 1040, line 20a, or on Form 1040A, line 14a.
● Enter the amount from line 18 above on Form 1040, line 20b, or on Form 1040A, line 14b.
Note: If you received a lump-sum payment in this year that was for an earlier year, also complete
Worksheet 2 or 3 and Worksheet 4 to see whether you can report a lower taxable benefit.
Page 8
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