2. Social Security & RR Retirement Tier 1 (Blue Form) Form 1040 Line 20 Pub 4012 Tab 2 Pub 17 Chapter 11 LEVEL 1, 2 TOPIC 4491-14 Income - Social Security Benefits v0.8 VO.ppt 11/19/20101DRAFT NJ Training TY2010 v0.8

3. Tax on Social Security benefits 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 TaxWise calculates taxable amount 11/19/2010 2DRAFT NJ Training TY2010 v0.8

4. 11/19/2010 3DRAFT NJ Training TY2010 v0.8

5. SS & RR Tier 1 Tax Wise 1040 Income Worksheet 1 LEVEL 1 STOP HERE 11/19/2010 4DRAFT NJ Training TY2010 v0.8

6. Tax on RR Retirement Tier 1 Railroad Retirement Tier 1 – Blue Form (Pub 915) RRB-1099 Same Rules as Social Security LEVEL 2 TOPIC 11/19/2010 5DRAFT NJ Training TY2010 v0.8

7. Social Security & Equivalent Railroad Retirement Benefits LEVEL 2 STOP HERE 11/19/2010 6DRAFT NJ Training TY2010 v0.8

8. FOREIGN OLD AGE PAYMENTS Old age payments from Canada and Germany By treaty are added to/treated as Social Security (Pub 115) Taxpayer must have converted amount into US dollars (bank statement shows) Not pensions 11/19/2010 7DRAFT NJ Training TY2010 v0.8

9. Lump Sum Social Security Payments For Prior Years SSA-1099A, Box 3 To be handled only by counselors trained in Lump Sum Social Security Payments LEVEL 3 TOPIC 11/19/2010 8DRAFT NJ Training TY2010 v0.8