Publication 915 – Fill Out and Use This PDF

Department of the Treasury

Internal Revenue Service

Publication 915

Cat. No. 15320P

Social

Security and Equivalent Railroad Retirement Benefits

For use in preparing 2021 Returns

Future Developments

For the latest information about developments related to Pub. 915, such as legislation enacted after it was published, go to IRS.gov/Pub915.

Reminders

my Social Security account. Social security beneficia- ries may quickly and easily obtain information from the SSA's website with a my Social Security account to:

•Keep track of your earnings and verify them every year,

•Get an estimate of your future benefits if you are still working,

•Get a letter with proof of your benefits if you currently receive them,

•Change your address,

•Start or change your direct deposit,

•Get a replacement Medicare card, and

•Get a replacement Form SSA-1099 or SSA-1042S for the tax season.

For more information and to set up an account, go to SSA.gov/myaccount.

Tuition and fees deduction not available. The tuition and fees deduction is not available after 2020. Instead, the income limitations for the lifetime learning credit have been increased. See Form 8863 and its instructions.

Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children se- lected by the Center may appear in this publication on pa- ges that would otherwise be blank. You can help bring

these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recog- nize a child.

Introduction

This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retire- ment benefits. It is prepared through the joint efforts of the IRS, the Social Security Administration (SSA), and the U.S. Railroad Retirement Board (RRB).

Social security benefits include monthly retirement, sur- vivor, and disability benefits. They don’t include Supple- mental Security Income (SSI) payments, which aren’t tax- able.

Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or benefi- ciary would have been entitled to receive under the social security system. They are commonly called the social se- curity equivalent benefit (SSEB) portion of tier 1 benefits.

If you received these benefits during 2021, you should have received a Form SSA-1099, Social Security Benefit Statement; Form RRB-1099, Payments by the Railroad Retirement Board; Form SSA-1042S, Social Security Benefit Statement; or Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, showing the amount.

Note. When the term “benefits” is used in this publica- tion, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits.

What is covered in this publication. This publication covers the following topics.

•Whether any of your benefits are taxable.

•How to report taxable benefits.

•How much is taxable.

•How to treat lump-sum benefit payments.

•Deductions related to your benefits, including a de- duction or credit you can claim if your repayments are more than your gross benefits.

The Appendix at the end of this publication explains items shown on your Form SSA-1099, SSA-1042S, RRB-1099, or RRB-1042S.

What isn’t covered in this publication. This publication doesn’t cover the tax rules for the following railroad retire- ment benefits.

•Non-social security equivalent benefit (NSSEB) por- tion of tier 1 benefits.

•Tier 2 benefits.

•Vested dual benefits.

•Supplemental annuity benefits.

For information on these taxable pension benefits, see Pub. 575, Pension and Annuity Income.

Page 2

This publication also doesn’t cover the tax rules for for- eign social security benefits. These benefits are taxable as annuities, unless they are exempt from U.S. tax or trea- ted as a U.S. social security benefit under a tax treaty.

Comments and suggestions. We welcome your com- ments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/ FormComments.

Or, you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

Although we can’t respond individually to each com- ment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above ad- dress.

Getting answers to your tax questions. If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/ Help/ITA where you can find topics by using the search feature or viewing the categories listed.

Getting tax forms, instructions, and publications. Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications.

Ordering tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current forms, instruc- tions, and publications; call 800-829-3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Don’t resubmit requests you’ve already sent us. You can get forms and publications faster online.

Useful Items

You may want to see:

Publication

501 Dependents, Standard Deduction, and Filing Information

505 Tax Withholding and Estimated Tax

519 U.S. Tax Guide for Aliens

575 Pension and Annuity Income

590-A Contributions to Individual Retirement Arrangements (IRAs)

Forms (and Instructions)

1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement

Publication 915 (2021)

RRB-1099 Payments by the Railroad Retirement Board

W-4V Voluntary Withholding Request

See How To Get Tax Help at the end of this publication for information about getting these publications and forms.

Are Any of Your

Benefits Taxable?

To find out whether any of your benefits shown on Forms SSA-1099 and RRB-1099 may be taxable, compare the base amount (explained later) for your filing status with the total of:

1.One-half of your benefits; plus

2.All your other income, including tax-exempt interest.

Exclusions. When making this comparison, don’t reduce your other income by any exclusions for:

•Interest from qualified U.S. savings bonds,

•Employer-provided adoption benefits,

•Interest on education loans,

•Foreign earned income or foreign housing, or

•Income earned by bona fide residents of American Samoa or Puerto Rico.

Children's benefits. The rules in this publication apply to benefits received by children. See Who is taxed, later.

The SSA issues Form SSA-1099 and Form TIP SSA-1042S. The RRB issues Form RRB-1099 and Form RRB-1042S. These forms (tax state- ments) report the amounts paid and repaid, and taxes

withheld for a tax year. You may receive more than one of these forms for the same tax year. See the Appendix, later, for more information.

Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is

an error in the original. A corrected Form RRB-1099 or Form RRB-1042S is indicated as “CORRECTED” and re- places the corresponding original Form RRB-1099 or Form RRB-1042S. You must use the latest corrected Form RRB-1099 or Form RRB-1042S you received and any original Form RRB-1099 or Form RRB-1042S that the RRB hasn’t corrected when you determine what amounts to report on your tax return.

Figuring total income. To figure the total of one-half of your benefits plus your other income, use Worksheet A, discussed later. If the total is more than your base amount, part of your benefits may be taxable.

If you are married and file a joint return for 2021, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Even if your spouse didn’t receive any bene- fits, you must add your spouse's income to yours to figure whether any of your benefits are taxable.

If the only income you received during 2021 was TIP your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits gener- ally aren’t taxable and you probably don’t have to file a re-

turn. If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. See IRS Pub. 501, Dependents, Standard De- duction, and Filing Information, or your tax return instruc- tions to find out if you have to file a return.

Base amount. Your base amount is:

•$25,000 if you are single, head of household, or quali- fying widow(er);

•$25,000 if you are married filing separately and lived apart from your spouse for all of 2021;

•$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 2021.

Worksheet A. You can use Worksheet A to figure the amount of income to compare with your base amount. This is a quick way to check whether some of your bene- fits may be taxable.

B. Multiply line A by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B.

C.Enter your total income that is taxable (excluding line A), such as pensions, wages, interest, ordinary dividends, and capital gain distributions. Don’t reduce your income by any

3,800

27,900

-0-

$31,700

Who is taxed. Benefits are included in the taxable in- come (to the extent they are taxable) of the person who has the legal right to receive the benefits. For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxa- ble to you. One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child.

Repayment of benefits. Any repayment of benefits you made during 2021 must be subtracted from the gross ben- efits you received in 2021. It doesn’t matter whether the repayment was for a benefit you received in 2021 or in an earlier year. If you repaid more than the gross benefits you received in 2021, see Repayments More Than Gross Benefits, later.

Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Your repayments are shown in box 4. The amount in box 5 shows your net ben- efits for 2021 (box 3 minus box 4). Use the amount in box 5 to figure whether any of your benefits are taxable.

Example. In 2020, you received $3,000 in social se- curity benefits, and in 2021 you received $2,700. In March 2021, the SSA notified you that you should have received only $2,500 in benefits in 2020. During 2021, you repaid $500 to the SSA. The Form SSA-1099 you received for 2021 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500).

Tax withholding and estimated tax. You can choose to have federal income tax withheld from your social security benefits and/or the SSEB portion of your tier 1 railroad re- tirement benefits. If you choose to do this, you must com- plete a Form W-4V, Voluntary Withholding Request.

If you don’t choose to have income tax withheld, you may have to request additional withholding from other in- come or pay estimated tax during the year. For details, see Pub. 505, Tax Withholding and Estimated Tax, or the Instructions for Form 1040-ES, Estimated Tax for Individu- als.

U.S. citizens residing abroad. U.S. citizens who are residents of the following countries are exempt from U.S. tax on their benefits.

•Canada.

•Egypt.

•Germany.

•Ireland.

•Israel.

•Italy. (You must also be a citizen of Italy for the ex- emption to apply.)

•Romania.

•United Kingdom.

The SSA won’t withhold U.S. tax from your benefits if you are a U.S. citizen.

Publication 915 (2021)

The RRB will withhold U.S. tax from your benefits un- less you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency infor- mation. If you don’t file Form RRB-1001, the RRB will con- sider you a nonresident alien and withhold tax from your railroad retirement benefits at a 30% rate. Contact the RRB to get this form.

Lawful permanent residents. For U.S. income tax pur- poses, lawful permanent residents (green card holders) are considered resident aliens until their lawful permanent resident status under the immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Social security benefits paid to a green card holder are not subject to 30% withholding. If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign ad- dress, the withholding tax is refundable by the Social Se- curity Administration (SSA) or the IRS. The SSA will re- fund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. If the SSA can’t refund the taxes withheld, you must file a Form 1040 or 1040-SR with the Internal Revenue Service Center, Austin, TX 73301, to determine if you are entitled to a refund. You must also attach the fol- lowing information to your Form 1040 or 1040-SR.

•A copy of the Form SSA-1042S, Social Security Bene- fit Statement.

•A copy of the “green card” unless you are a bona fide resident of American Samoa.

•A signed declaration that includes the following state- ments:

“The SSA should not have withheld federal income tax from my social security benefits because I am a U.S. law- ful permanent resident and my green card has been nei- ther revoked nor administratively or judicially determined to have been abandoned. I am filing a U.S. income tax re- turn for the tax year as a resident alien reporting all of my worldwide income. I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien.”

Nonresident aliens. A nonresident alien is an individual who isn’t a citizen or resident of the United States. If you are a nonresident alien, the rules discussed in this publi- cation don’t apply to you. Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. These forms will also show the tax rate and the amount of tax withheld from your benefits.

Under tax treaties with the following countries, resi- dents of these countries are exempt from U.S. tax on their benefits.

•Canada.

•Egypt.

•Germany.

•Ireland.

•Israel.

Page 5

•Italy.

•Japan.

•Romania.

•United Kingdom.

Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U.S. tax if the benefits are for services performed for the United States, its subdivisions, or local government authorities.

If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate.

For more information on whether you are a nonresident alien, see Pub. 519, U.S. Tax Guide for Aliens.

Exemption from withholding. If your social security benefits are exempt from tax because you are a resident of one of the treaty countries listed, the SSA won’t with- hold U.S. tax from your benefits.

If your railroad retirement benefits are exempt from tax because you are a resident of one of the treaty countries listed, you can claim an exemption from withholding by fil- ing Form RRB-1001 with the RRB. Contact the RRB to get this form.

Canadian or German social security benefits paid to U.S. residents. Under income tax treaties with Canada and Germany, social security benefits paid by those coun- tries to U.S. residents are treated for U.S. income tax pur- poses as if they were paid under the social security legis- lation of the United States. If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1.

How To Report Your Benefits

If part of your benefits are taxable, you must use Form 1040 or 1040-SR.

Reporting on Form 1040 or 1040-SR. Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 6a and the taxa- ble part on line 6b. If you are married filing separately and you lived apart from your spouse for all of 2021, also enter “D” to the right of the word “benefits” on line 6a.

Benefits not taxable. Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040 or 1040-SR, line 6a. En- ter -0- on Form 1040 or 1040-SR, line 6b. If you are mar- ried filing separately and you lived apart from your spouse for all of 2021, also enter “D” to the right of the word “ben- efits” on Form 1040 or 1040-SR, line 6a.

How Much Is Taxable?

If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits and other in- come. Generally, the higher that total amount, the greater the taxable part of your benefits.

Maximum taxable part. Generally, up to 50% of your benefits will be taxable. However, up to 85% of your bene- fits can be taxable if either of the following situations ap- plies to you.

•The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are mar- ried filing jointly).

•You are married filing separately and lived with your spouse at any time during 2021.

Which worksheet to use. A worksheet you can use to figure your taxable benefits is in the Instructions for Form 1040. You can use either that worksheet or Worksheet 1 in this publication, unless any of the following situations applies to you.

1.You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. In this situation, you must use the special worksheets in Appendix B of Pub. 590-A to figure both your IRA deduction and your taxable benefits.

2.Situation 1 doesn’t apply and you take an exclusion for interest from qualified U.S. savings bonds (Form 8815), for adoption benefits (Form 8839), for foreign earned income or housing (Form 2555), or for income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. In this situation, you must use Worksheet 1 in this publication to figure your tax- able benefits.

3.You received a lump-sum payment for an earlier year. In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in this publication. See Lump-Sum Elec- tion, later.

Examples

A few examples you can use as a guide to figure the taxa- ble part of your benefits follow.

Be sure to consider the adjustment to income for TIP charitable contributions on Form 1040 or 1040-SR, line 12b, when deciding whether to itemize. You can only claim that adjustment to income if you take the standard deduction. See the Instructions for

Form 1040, for more information.

 9. If you are:

• Married filing jointly, enter $32,000

• Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2021, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9.

Note. If you are married filing separately and you lived with your spouse at any time in 2021, skip lines 9 through 16, multiply line 8 by 85% (0.85), and enter the result on line 17. Then, go to line 18.

10.Is the amount on line 9 less than the amount on line 8?

2,990

28,990 -0-

-0- 31,980 -0-

31,980

25,000

6,980

9,000 -0- 6,980 3,490 2,990 -0- 2,990 5,083

$2,990

 9. If you are:

• Married filing jointly, enter $32,000

• Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2021, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9.

Note. If you are married filing separately and you lived with your spouse at any time in 2021, skip lines 9 through 16, multiply line 8 by 85% (0.85), and enter the result on line 17. Then, go to line 18.

10.Is the amount on line 9 less than the amount on line 8?

2,800

29,750 -0-

-0- 32,550 1,000

31,550

32,000

 9. If you are:

• Married filing jointly, enter $32,000

• Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2021, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9.

Note. If you are married filing separately and you lived with your spouse at any time in 2021, skip lines 9 through 16, multiply line 8 by 85% (0.85), and enter the result on line 17. Then, go to line 18.

10.Is the amount on line 9 less than the amount on line 8?

5,000

40,500 -0-

-0- 45,500 -0-

45,500

32,000

13,500

12,000

1,500

12,000

6,000

5,000

1,275

6,275

8,500

$6,275

 9. If you are:

• Married filing jointly, enter $32,000

• Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2021, enter $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9.

Note. If you are married filing separately and you lived with your spouse at any time in 2021, skip lines 9 through 16, multiply line 8 by 85% (0.85), and enter the result on line 17. Then, go to line 18.

10.Is the amount on line 9 less than the amount on line 8?

2,000

8,000 -0-

-0- 10,000 -0-

10,000

8,500

3,400

$3,400