1. 8/10/2015NJ Training TY 20081 Social Security & RR Retirement Tier 1 (Blue Form) Module NJ 1.14

2. 8/10/2015 NJ Training TY 20082 Tax On Social Security & RR Retirement Tier 1 Up to 85% of benefits can be taxable May be taxable if one-half of social security plus all other income (including tax-exempt interest) is greater than: $32,000 MFJ $25,000 single, HOH or qualified widow $25,000 MFS/lived apart all year $0 MFS/lived together any part of year Railroad Retirement Tier 1 – Blue Form (Pub 915) RRB-1099 Same Rules as Social Security

3. 8/10/2015 NJ Training TY 20083

4. 8/10/2015 NJ Training TY 20084 Social Security & Equivalent Railroad Retirement Benefits

5. 8/10/2015 NJ Training TY 20085 SS & RR Tier 1 Tax Wise 1040 Income Worksheet 1

6. 8/10/2015 NJ Training TY 20086 Lump Sum Social Security Payments For Prior Years SSA-1099A, Box 3 This section is intended for counselors trained in Lump Sum Social Security Payments Not as difficult as it appears in TaxWise Must have copies of prior years returns

7. 8/10/2015 NJ Training TY 20087 1099-SSA With Lump Sum Total from Box 5 = $33,996 Amount for 2006 = $12,948 Amount for 2005 = $5,190 Therefore, the amount for 2007 would be $15,858

8. 8/10/2015 NJ Training TY 20088 Start With 1040 Wkt1 In TaxWise, at the bottom of 1040 Wkt1 you’ll see “Lump Sum Payment.” Enter $15,858 for taxpayer then click here and F9 for worksheet 2008

9. 8/10/2015 NJ Training TY 20089 Blank Worksheet 2006

10. 8/10/2015 NJ Training TY 200810 Completed Worksheet – 2006

11. 8/10/2015 NJ Training TY 200811 Completed Worksheet – 2005

12. 8/10/2015 NJ Training TY 200812 Comparison $10,536 vs $3, 516 Taxable SS without using Lump Sum Worksheet Taxable SS using Lump Sum Worksheet

13. 8/10/2015 NJ Training TY 200813 Tips Taxpayer must have copies of previous year return(s) Be sure to enter any SS income received in previous year Be sure to check previous return for any tax-exempt interest (Line 8b)