Introduction

Introduction:-

Base amount

Worksheet.

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 Introduction
B

Note

Repayment of benefits.

U.S. citizens residing abroad.

1
2
3
4
5
6
7
8

Box 1—Name

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Box 2—Beneficiary’s Social Security

Number

Box 3—Benefits Paid in 2006

Description of Amount in Box 3

Additions:-

Subtraction:-

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Box 4—Benefits Repaid to SSA in 2006

Box 5—Net Benefits for 2006 (Box 3

minus Box 4)

Box 6___Voluntary Federal Income Tax

Withholding

Box 7___Address

Box 8____Claim Number

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1099 – Social Security Benefits

Each Individual who receives Social Security Benefits will receive a Form SSA-1099 for report
benefits. A taxpayer’s SSB will be reported on Form SSA-1099; similarly Equivalent Tier I Rai
Retirement Benefits are reported on RRB-1099. Both are similar in nature. The SSA issues Fo
1099. The RRB issues Form RRB-1099. These forms report the amounts paid and repaid, and
withheld for a tax year. You may receive more than one of these forms for the same tax yea
should add the amounts shown on all forms you receive from SSA and/or RRB for the same t
determine the Total amounts paid and repaid, and taxes withheld for that tax year.

If the only income you received during 2006 was your social security or the SSEB portion of t
railroad retirement benefits, your benefits gener- ally are not taxable and you probably do n
file a return. If you have income in addition to your benefits, you may have to file a return ev
of your benefits are taxable.
Your base amount is:

$25,000 if you are single, head of household, or qualifying widow(er),

$25,000 if you are married filing separately and lived apart from your spouse for all of 2006,

$32,000 if you are married filing jointly, or

$-0- if you are married filing separately and lived with your spouse at any time during 2006.

You can use the following worksheet to figure the amount of income to compare with your b
This is a quick way to check whether some of your benefits may be taxable.

A. Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Include the full a
any lump-sum benefit payments received in 2006, for 2006 and earlier years. (If you receive
one form, combine the amounts from box 5 and enter the
total.) ........................................................................................................................................

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Enter one-half of the amount on line A......................................................................................

Enter your taxable pensions, wages, interest, dividends, and other taxable income................

Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclus

Add lines B, C, and D ................................................................................................................

Compare the amount on line E to your base amount for your filing status. If the amount on
equals or is less than the base amount for your filing status, none of your benefits are taxa
year. If the amount on line E is more than your base amount, some of your benefits may be

Any repayment of benefits you made during 2006 must be subtracted from the gross benefi
received in 2006. It does not matter whether the repayment was for a benefit you received i
an earlier year.

U.S. citizens who reside in the following countries are exempt from U.S. tax on their benefits

Canada.
Egypt.
Germany.
Ireland.
Israel.
Italy.
Romania.
United Kingdom.

The SSA will not withhold U.S. tax from your benefits if you are a U.S. Citizen.

The name shown in this box refers to the person for whom the social security benefits shown
statement were paid. If you received benefits for yourself, your name will be shown.

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This is the U.S. social security number, if known, of the person named in box 1.

The figure shown in this box is the total benefits paid in 2006 to you (the person named in b
figure may not agree with the amounts you actually received because adjustments may hav
made to your benefits before you received them. An asterisk (*) after the figure shown in thi
that it includes benefits received in 2006 for one or more earlier years.

This part of the form describes the items included in the amount shown in box 3. It lists the b

The following adjustment items may have been deducted from your benefits :

Medicare premiums deducted from your benefit If you have Medicare premiums deduc
your benefits, this is the amount withheld during 2006. (Schedule A – Medical Expenses)

Paid to another family member. This entry shows total payments withheld from your ben
are required to pay child support or alimony. (Form 1040 – Line 33a for alimony paid and not
deductible for child support)

Attorney fees and/or SSI offset. If you had an attorney handle your social security claim,
shown here is the fee withheld from your benefits and paid directly to your attorney. (Sched
Misc. Deduction subject to 2 %)

Voluntary federal income tax withheld This shows the total amount of federal income ta
from your benefits. Include this amount on your income tax return as tax withheld.

The following adjustment items may have been included in the payments:

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Payments for months before December 1983. The figure shown here is the amount of b
received in 2006 that was for months before December 1983. These benefits are not taxable
when they are paid.

Lump-sum death payment. The lump-sum death payment is not subject to tax. An entry h
you received this kind of payment.

Nontaxable payments. This entry shows nontaxable payments such as lump-sum death p

Amounts refunded to you. The amount shown here may include Medicare premiums you
excess of the amount actually due.

The figure shown in this box is the total amount of benefits. you repaid to SSA in 2006.

The figure in this box is the net benefits paid to you for the year. It is the result of subtractin
in box 4 from the figure in box 3. Enter this amount on line A of IRS Notice 703, or on line 1 o
1, shown earlier, or on the worksheet in either the Form 1040 or 1040A instruction package.
. If parentheses are around the figure in box 5, it means that the figure in box 4 is larger tha
in box 3. This is a negative figure and means you repaid more money than you received in 2
have any questions about this negative figure, contact your local SSA office. For more inform
Repayments More Than Gross Benefits, earlier.

The total amount of federal income tax withheld from your benefits. Include this amount on
tax return as tax withheld.

Enter the beneficiary's addrress.

Enter the claim number which is given in the source document.

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A__________

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B__________

C_________

D__________

E__________

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efits paid and any adjustments made.

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 Source Document
Types Of Source Document For 1099-SSA
1
2
3
4

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Source Document

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Source Document

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Source Document

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Source Document

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 Source Document
pes Of Source Document For 1099-SSA
Organizer Page
1099-SSA
Handwritten Information
Typed Information/Printed Income Summary

1 - Organizer Page

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Source Document

2 - 1099 – Social Security Benefits

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Source Document

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Source Document

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Source Document

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 Input - Output
Input Screens in Tax Softwares
1 M- 1
2 IRS - 1099-SSA
3 IRS - 1099-DIV
4 Schedule K1 (1065/1041/1120S)

1099 – Social Security Benefits

Box Description

1 Name
2 Beneficiary’s Social Security Number
3 Benefits Paid in 2006
4 Benefits Repaid to SSA in 2006
5 Net Benefits for 20006 ( Box 3 Minus Box 4)
6 Voluntary Federal Income Tax Withholding
7 Address
8 Claim Number
From Box 3 Calc Medicare Premiums Withheld

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 Input - Output

Benefits

Pro Sys
Output
Input ScreenBox
IRS -
IRS -
IRS -
M1 / IRS 52 -
M1 / IRS 50 Form 1040 – Line no 20a -
M1 / IRS 72 Form 1040 – Line no 64
IRS -
N/A Not used in the calculation of the return
M1 / IRS 54 Schedule A Line 5

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