When Are Benefits Taxable?

Part of the following benefits received by the taxpayer may be taxable:

• Social security benefits
• Railroad retirement benefits, tier 1 (social security equivalent portion)

The amount from box 5 of Form SSA-1099 or Form RRB-1099 is used to calculate the taxable portion of the benefits. The taxable amount, if any, of a taxpayer's social security (or social security equivalent) benefits depends upon:

• Filing status and other reportable income
• Whether the benefits were the taxpayer's only source of income
  • If the benefits were the only source of income, the taxpayer generally does not need to file a federal income tax return

A portion of the benefits is taxable if total income (including tax-exempt interest) plus one-half of the benefits received is more than certain base income amounts, which vary based upon filing status. A portion of the benefits is also taxable if the taxpayers are filing Married Filing Separately and lived with their spouse at any time during the year.

If the taxpayer received social security benefits and other income, complete the Social Security Benefits Worksheet to calculate the taxable portion.