Ernst & Young Tax Guide 2018, 33rd Edition

Chapter 11 Social security and equivalent railroad retirement benefits

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1. Are Any of Your Benefits Taxable?
2. How To Report Your Benefits
   1. How Much Is Taxable?
3. Examples
4. Deductions Related To Your Benefits
5. Repayments More Than Gross Benefits

Note

IRS Publication 17 (Your Federal Income Tax) has been updated by Ernst & Young LLP for 2017. Dates and dollar amounts shown are for 2017. Underlined type is used to indicate where IRS text has been updated. Places where text has been removed are indicated by the sentence: Text intentionally omitted.

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Introduction

Social security income and equivalent railroad retirement benefits were once tax free. But that hasn’t been the case since 1984. Potentially, up to 85% of the benefits you receive may be subject to income tax, depending on your filing status and total income for the year. Figuring out whether the benefits you receive are taxable is not an easy task. It requires navigating through complicated rules and numerous computations. This chapter will aid in simplifying your task. Among other things, it includes worksheets to help you make the necessary calculations.

This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad ...