If the only income you received during 2000 was your social security or equivalent tier 1 Railroad Retirement benefits, your benefits are unlikely to be taxed and you probably will not have to file a return.

If you also received other income, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. Your taxable benefits and modified adjusted gross income are figured in a worksheet in the Form 1040 or 1040A instruction book. But, before you go to the instruction book, do the following quick computation to see if some of your benefits may be taxable. First, add one-half of your social security or equivalent tier 1 Railroad Retirement benefits to all your other income, including any tax-exempt interest or exclusions from income. Compare this total to your base amount. Your base amount is one of the following:

• $25,000 if you are single, head of household, or qualifying widow or widower with a dependent child;
• $25,000 if you are married filing separately and did not live with your spouse at any time during the year;
• $32,000 if you are married and file a joint return;
• Zero if you are married filing separately and lived with your spouse at any time during the year.

If your income is less than your base amount, none of your benefits are taxable. The taxable amount of your benefits is figured on a worksheet in the Form 1040 or 1040A instruction book.

The taxable benefits, if any, must be included in the gross income of the person who has the legal right to receive them. For example, if you and your child received benefits, but the check for your child was made out in your name, you must use only your own portion of the benefits in figuring if any part is taxable to you. Half of the portion of the benefits that belong to your child must be added to your child's other income to see if any of those benefits are taxable.

If you are married and file a joint return, you and your spouse must combine your incomes and your social security and equivalent tier 1 Railroad Retirement benefits when figuring the taxable portion of your benefits.

If part of your benefits is taxable, enter both the total amount and the taxable amount of the benefits received on Form 1040 or 1040A. You cannot use Form 1040EZ.

You should receive your 2000 Form SSA-1099 or Form RRB-1099 by January 31, 2001. The form will show benefits paid to the person who has the legal right to get them, and the amount of any benefits you repaid in 2000. It will also show amounts by which the benefits were reduced because you received workers compensation benefits.

For additional information, refer to Publication 915, Social Security and Equivalent Railroad Retirement Benefits. If any part of your social security or equivalent tier 1 Railroad Retirement benefits will be taxable in 2001, you may need to pay estimated tax. See Topic 355 for additional information on estimated tax. Publications and forms may be downloaded from this site or ordered by calling 1-800-829-3676.

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