IRS Releases Publication 915 (2016), Social Security and Equivalent Railroad Retirement Benefits

Reminders

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Introduction

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

Social security benefits include monthly retirement, survivor, and disability benefits. They do not include Supplemental Security Income (SSI) payments, which are not taxable.

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

If you received these benefits during 2016, 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 publication, 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.

What is not covered in this publication. This publication does not cover the tax rules for the following railroad retirement benefits.

This publication also does not cover the tax rules for foreign social security benefits. These benefits are taxable as annuities, unless they are exempt from U.S. tax or treated as a U.S. social security benefit under a tax treaty. Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions.

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Tax questions. If you have a tax question not answered by this publication, check IRS.gov and How To Get Tax Help at the end of this publication.

Useful Items

You may want to see:

Publication

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:

TIP: The SSA issues Form SSA-1099 and Form SSA-1042S. The RRB issues Form RRB-1099 and Form RRB-1042S. These forms (tax statements) 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 at the end of this publication 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 replaces 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 has not 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 2016, 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 did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable.

TIP: If the only income you received during 2016 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable.

Base amount. Your base amount is:

Worksheet A. A Quick Way To Check if Your Benefits May Be Taxable

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Even though none of your benefits are taxable, you must file a return for 2016 because your taxable gross income ($23,300) exceeds the minimum filing requirement amount for your filing status.

Filled-in Worksheet A. A Quick Way To Check if Your Benefits May Be Taxable

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Repayment of benefits. Any repayment of benefits you made during 2016 must be subtracted from the gross benefits you received in 2016. It does not matter whether the repayment was for a benefit you received in 2016 or in an earlier year. If you repaid more than the gross benefits you received in 2016, 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 benefits for 2016 (box 3 minus box 4). Use the amount in box 5 to figure whether any of your benefits are taxable.

Example. In 2015, you received $3,000 in social security benefits, and in 2016 you received $2,700. In March 2016, SSA notified you that you should have received only $2,500 in benefits in 2015. During 2016, you repaid $500 to SSA. The Form SSA-1099 you received for 2016 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 retirement benefits. If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Statement.

If you do not choose to have income tax withheld, you may have to request additional withholding from other income 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 Individuals.

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

The RRB will withhold U.S. tax from your benefits unless you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency information. If you do not file Form RRB-1001, the RRB will consider 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 purposes, 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 address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. If SSA cannot refund the taxes withheld, you must file a 1040A with the Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. You must also attach the following information to your Form 1040 or 1040A.

Nonresident aliens. A nonresident alien is an individual who is not a citizen or resident of the United States. If you are a nonresident alien, the rules discussed in this publication do not 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, residents of these countries are exempt from U.S. tax on their benefits.

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 will not withhold 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 filing 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 countries to U.S. residents are treated for U.S. income tax purposes as if they were paid under the social security legislation of the United States. If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1, shown later.

How To Report Your Benefits

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

Reporting on Form 1040. Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 20a and the taxable part on line 20b. If you are married filing separately and you lived apart from your spouse for all of 2016, also enter "D" to the right of the word "benefits" on line 20a.

Reporting on Form 1040A. Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 14a and the taxable part on line 14b. If you are married filing separately and you lived apart from your spouse for all of 2016, also enter "D" to the right of the word "benefits" on line 14a.

Benefits not taxable. If you are filing Form 1040EZ, do not report any benefits on your tax return. If you are filing Form 1040A, report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040, line 20a; or Form 1040A, line 14a. Enter -0- on Form 1040, line 20b; or Form 1040A, line 14b. If you are married filing separately and you lived apart from your spouse for all of 2016, also enter "D" to the right of the word "benefits" on Form 1040, line 20a; or Form 1040A, line 14a.

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 income. 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 benefits can be taxable if either of the following situations applies to you.

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

Example 1. George White is single and files Form 1040 for 2016. In addition to receiving social security payments, he received a fully taxable pension of $18,600, wages from a part-time job of $9,400, and taxable interest income of $990, for a total of $28,990. He received a Form SSA-1099 in January 2017 that shows his net social security benefits of $5,980 in box 5.

To figure his taxable benefits, George completes Worksheet 1, shown below. On line 20a of his Form 1040, George enters his net benefits of $5,980. On line 20b, he enters his taxable benefits of $2,990.

Filled-in Worksheet 1. Figuring Your Taxable Benefits

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Filled-in Worksheet 1. Figuring Your Taxable Benefits

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Filled-in Worksheet 1. Figuring Your Taxable Benefits

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Filled-in Worksheet 1. Figuring Your Taxable Benefits

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You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2016 in your 2016 income, even if the payment includes benefits for an earlier year.

TIP: This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. No part of the lump-sum death benefit is subject to tax.

Generally, you use your 2016 income to figure the taxable part of the total benefits received in 2016. However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. You can elect this method if it lowers your taxable benefits.

Under the lump-sum election method, you refigure the taxable part of all your benefits for the earlier year (including the lump-sum payment) using that year's income. Then you subtract any taxable benefits for that year that you previously reported. The remainder is the taxable part of the lump-sum payment. Add it to the taxable part of your benefits for 2016 (figured without the lump-sum payment for the earlier year).

CAUTION: Because the earlier year's taxable benefits are included in your 2016 income, no adjustment is made to the earlier year's return. Do not file an amended return for the earlier year.

Will the lump-sum election method lower your taxable benefits? To find out, take the following steps.

Making the election. If you elect to report your taxable benefits under the lump-sum election method, follow the instructions at the bottom of Worksheet 4. Do not attach the completed worksheets to your return. Keep them with your records.

CAUTION: Once you elect this method of figuring the taxable part of a lump-sum payment, you can revoke your election only with the consent of the IRS.

Lump-sum payment reported on Form SSA-1099 or RRB-1099. If you received a lump-sum payment in 2016 that includes benefits for one or more earlier years after 1983, it will be included in box 3 of either Form SSA-1099 or Form RRB-1099. That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. The form will also show the year (or years) the payment is for. However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2014. You must contact the RRB for a breakdown by year for any amount shown in box 9.

Example

Jane Jackson is single. In 2015 she applied for social security disability benefits but was told she was ineligible. She appealed the decision and won. In 2016, she received a lump-sum payment of $6,000, of which $2,000 was for 2015 and $4,000 was for 2016. Jane also received $5,000 in social security benefits in 2016, so her total benefits in 2016 were $11,000. Jane's other income for 2015 and 2016 is as follows.

          Income               2015       2016

Jane completes Worksheet 1 to find the amount of her taxable benefits for 2016 under the regular method. She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2015 under the lump-sum election method. She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits.

After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21; and Worksheet 1, line 19. Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. To do this, she prints "LSE" to the left of Form 1040, line 20a. She then enters $11,000 on Form 1040, line 20a, and her taxable benefits of $2,500 on line 20b.

Jane's filled-in worksheets (1, 2, and 4) follow.

Jane Jackson's Filled-in Worksheet 1. Figuring Your Taxable Benefits

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You may be entitled to deduct certain amounts related to the benefits you receive.

Disability payments. You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. If you received a lump-sum payment from SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Claim the deduction or credit in the same way explained under Repayment of benefits received in an earlier year in the section Repayments More Than Gross Benefits, later.

Legal expenses. You can usually deduct legal expenses that you pay or incur to produce or collect taxable income or in connection with the determination, collection, or refund of any tax.

Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23.

Repayments More Than Gross Benefits

In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Do not use Worksheet 1 in this case. If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year.

If you have any questions about this negative figure, contact your local SSA office or your local RRB field office.

Joint return. If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5, but your spouse's does not, subtract the amount in box 5 of your form from the amount in box 5 of your spouse's form. You do this to get your net benefits when figuring if your combined benefits are taxable.

Example. John and Mary file a joint return for 2016. John received Form SSA-1099 showing $3,000 in box 5. Mary also received Form SSA-1099 and the amount in box 5 was ($500). John and Mary will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable.

Repayment of benefits received in an earlier year. If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year.

Deduction $3,000 or less. If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Claim it on Schedule A (Form 1040), line 23.

Deduction more than $3,000. If this deduction is more than $3,000, you should figure your tax two ways.

Worksheets

Blank Worksheets 1 through 4 are provided in this section.

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This appendix explains items shown on Form SSA-1099 and Form RRB-1099. Forms SSA-1042S and RRB-1042S, for nonresident aliens, contain the same items plus a few additional ones. These are also explained.

CAUTION: The illustrated versions of Form SSA-1099, SSA-1042S, RRB-1099, and RRB-1042S in this appendix are proof copies of the forms as they appeared when this publication went to print. The information on the illustrated forms should be essentially the same as the information on the form you received from either the SSA or the RRB. You should, however, compare the form you received with the one shown in this publication to note any differences.

Form SSA-1099, Social Security Benefit Statement 2016

Every person who received social security benefits will receive a Form SSA-1099. If you receive benefits on more than one social security record, you may get more than one Form SSA-1099. IRS Notice 703 will be enclosed with this form. It contains a worksheet to help you figure if any of your benefits are taxable. Do not mail Notice 703 to either the IRS or the SSA.

The name shown in this box refers to the person for whom the social security benefits shown on the statement were paid. If you received benefits for yourself, your name will be shown.

Box 2--Beneficiary's Social Security Number

This is the U.S. social security number, if known, of the person named in box 1.

TIP: In all your correspondence with the SSA, be sure to use the claim number shown in box 8.

Box 3--Benefits Paid in 2016

The figure shown in this box is the total benefits paid in 2016 to you (the person named in box 1). This figure may not agree with the amounts you actually received because adjustments may have been made to your benefits before you received them. An asterisk (*) after the figure shown in this box means that it includes benefits received in 2016 for one or more earlier years.

Description of Amount in Box 3

This part of the form describes the items included in the amount shown in box 3. It lists the benefits paid and any adjustments made. Only the adjustments that apply to you will be shown. If no adjustments were made to the benefits paid, the word "none" will be shown.

Paid by check or direct deposit. This is the amount you actually received or that was deposited directly into your account in a financial institution in 2016.

Additions. The following adjustment items may have been deducted from your benefits in 2016. If amounts appear on your Form SSA-1099 next to these items, they will be added to the amount shown in "Paid by check or direct deposit."

TIP: Do not reduce the amount of net social security benefits (box 5) by any of the items listed below. Use the amount in box 5 to figure taxable social security.

Medicare premiums deducted from your benefit. If you have Medicare premiums deducted from your benefits, this is the amount withheld during 2016. The basic monthly premium in 2016 was $104.90 for most people, but it could be higher if you were a new enrollee in 2016, you enrolled after you were first eligible, you had a break in coverage, or the modified adjusted gross income shown on your 2014 federal income tax return is greater than $85,000 ($170,000 if married filing jointly).

Medicare Part C, Medicare Advantage Premium, and Medicare Part D, Prescription Drug Premium, are other Medicare deductions you may have. These premiums may vary.

Workers' compensation offset. If you are disabled and receive workers' compensation or Part C Black Lung payments, your benefits are subject to a payment limit. An entry will be shown here if your benefits were reduced to stay within this limit. An entry will also be shown here if your benefits were reduced because the person on whose social security record you were paid is disabled and also received workers' compensation or Part C Black Lung payments.

Paid to another family member. This entry shows total payments withheld from your benefits if you are required to pay child support or alimony.

Deductions for work or other adjustments. Amounts withheld from your benefits because of work or to recover an overpayment of any type of benefit are benefits paid to you and will be shown here. They also may be treated as benefits repaid to SSA and included in the amount in box 4.

Attorney fees. If you had an attorney handle your social security claim, the figure shown here is the fee withheld from your benefits and paid directly to your attorney.

Voluntary federal income tax withheld. This shows the total amount of federal income tax withheld from your benefits. Include this amount on your income tax return as tax withheld.

Treasury benefit payment offset, garnishment, and/or tax levy. Part of your Title II Social Security benefit may be withheld on behalf of the Treasury Department to recover debts you owe to other federal agencies; part of your Title II Social Security benefits may be withheld to pay child support, alimony, or court ordered victim restitution; and/or part of your Title II Social Security benefits may be withheld to pay your debt to the IRS.

Total additions. The figure shown here is the sum of the amounts paid by check or direct deposit plus all the additions described previously.

Subtractions. The following adjustment items may have been included in the payments you received in 2016. If amounts appear on your Form SSA-1099 next to these items, they will be subtracted from the figure in Total Additions.

Payments for months before December 1983. The figure shown here is the amount of benefits you received in 2016 that was for months before December 1983. These benefits are not taxable no matter when they are paid.

Lump-sum death payment. The lump-sum death payment is not subject to tax. An entry here means you received this kind of payment in 2016.

Amounts refunded to you. The amount shown here may include Medicare premiums you paid in excess of the amount actually due. It also may include amounts withheld in 2016 to pay your attorney in excess of the fee actually paid.

Nontaxable payments. This entry shows nontaxable payments such as lump-sum death payments.

Amounts paid to you for other family members. This entry shows benefit payments paid to you on behalf of a minor child or disabled adult.

Total subtractions. The figure shown here is the sum of all the subtractions described previously.

Benefits for 2016. The amount shown here is the result of subtracting the figure in Total subtractions from the figure in Total additions. This amount is the same as that shown in box 3.

*Box 3 includes $____ paid in 2016 for 2015, 2014, and other tax years. The figure shown here is the amount of any lump-sum benefit payment received in 2016 that is for an earlier year after 1983. See Lump-Sum Election, earlier, for a full discussion on how these payments are handled.

Box 4--Benefits Repaid to SSA in 2016

The figure shown in this box is the total amount of benefits you repaid to SSA in 2016.

Description of Amount in Box 4

This part of the form describes the items included in the amount shown in box 4. It lists the amount of benefit checks you returned to SSA and any adjustments for other types of repayments. The amounts listed include all amounts repaid in 2016, no matter when the benefits were received. Only the repayments that apply to you will be shown. If you did not make any repayments, the word "none" will be shown.

Checks returned to SSA. If any of your benefit checks were returned to SSA, the total is shown here.

Deductions for work or other adjustments. If any amounts were withheld from your benefits because of work or to recover an overpayment of retirement, survivors, or disability benefits, the total will be shown here. This may also be shown as Deductions for work or other adjustments under Description of Amount in Box 3.

Other repayments. This is the amount you repaid to SSA by direct remittance.

Benefits repaid to SSA in 2016. The amount shown here is the sum of all your repayments. This total is the same as that shown in box 4.

Box 5--Net Benefits for 2016 (Box 3 minus Box 4)

The figure in this box is the net benefits paid to you for the year. It is the result of subtracting the figure in box 4 from the figure in box 3. Enter this amount on line A of IRS

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. See Pub. 519 for more information on nonresident aliens.

Box 7--Amount of Tax Withheld

This is the amount of tax taken out of your social security checks. Tax is withheld for any month in which you were a nonresident alien (unless you were exempt under a tax treaty).

Box 8--Amount of Tax Refunded

An amount in this block shows any tax SSA refunded to you. When SSA withholds tax from your checks by mistake, they try to return it to you during the same calendar year. If SSA is unable to send the refund to you before the year ends, you must file a federal income tax return to get a refund of this tax.

Box 9--Net Tax Withheld During 2016

The figure in this box is the result of subtracting the figure in box 8 from the figure in box 7. This is the net amount of tax withheld from your benefits.

This section explains the items shown on Form RRB-1099. Form RRB-1099 is issued to citizens and residents of the United States. If you received, repaid, or had tax withheld from the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits or special guaranty benefits during 2016, you will receive Form RRB-1099.

TIP: Each beneficiary will receive his or her own Form RRB-1099. If you receive benefits on more than one railroad retirement record, you may get more than one Form RRB-1099. To help insure that you get your form timely, make sure the RRB always has your current mailing address.

Box 1--Claim Number and Payee Code

Your RRB claim number is a six- or nine-digit number preceded by an alphabetical prefix and is the number under which the SSEB portion of tier 1 benefits or special guaranty benefits were paid. Your payee code is the number following your claim number and is used by the RRB to identify you under your claim number. In all your contacts with the RRB, be sure to use the claim number and payee code shown in this box.

Box 2--Recipient's Identification Number

This is the U.S. social security number (SSN), individual taxpayer identification number (ITIN), or employer identification number (EIN), if known, for the person or estate listed as the recipient.

Box 3--Gross Social Security Equivalent Benefit Portion of Tier 1 Paid in 2016

The figure shown in this box is the gross SSEB portion of tier 1 benefits or special guaranty benefits paid to you in 2016. It is the amount before any deductions were made for:

Example 1. For the period January through March 2016, you received $300 ($100 × 3 months) Railroad Unemployment Insurance. You were eligible for the SSEB portion of tier 1 benefits of $509 a month beginning January 1, 2016, but you did not receive your first payment until April 2016. The payment you received in April was for the first 3 months of 2016. However, because you received unemployment benefits during the same period, $300 was deducted from your initial benefit payment. Instead of receiving $1,527 ($509 × 3 months), you received $1,227 ($1,527 - $300). For the months of April through November, you were paid your regular monthly SSEB portion of tier 1 benefits of $509. Box 3 of your Form RRB-1099 will show $5,599 ($509 × 11 months) as the gross SSEB portion of tier 1 benefits paid to you in 2016, even though you did not actually receive that amount. This is because box 3 shows the gross amount of your benefits before any reductions were made for the unemployment benefits paid to you.

Example 2. You received tier 1 benefits of $600 a month for the months of December 2015 through May 2016. Your $600 monthly tier 1 benefits consist of an SSEB portion of $250 and a non-social security equivalent benefit (NSSEB) portion of $350. Beginning in June 2016, you became entitled to Medicare, and $121.80 a month was deducted from your benefit checks for Medicare premiums. Therefore, the tier 1 payments you received for the rest of the year were $478.20 ($600 - $121.80) a month. Box 3 of your Form RRB-1099 will show the gross SSEB portion of tier 1 benefits of $3,000 ($250 × 12 months), because it is the gross SSEB amount before deductions for your Medicare premiums. Box 11 of your Form RRB-1099 will show your Medicare premiums of $730.80 ($121.80 × 6 months) deducted from June through November 2016. The remainder of your tier 1 payments, the NSSEB portion of $4,200 ($350 × 12 months), will be shown on the Form RRB-1099-R that you will receive along with your Form RRB-1099. The $4,200 is the gross NSSEB amount before deductions for your Medicare premiums. (The Medicare Premium Total box shown on your Form RRB-1099-R will be blank because the Medicare total will be shown in box 11 of your Form RRB-1099.) For more information on Form RRB-1099-R, see Pub. 575.

Benefits paid for earlier years. The figure in box 3 includes any lump-sum benefit payment you received in 2016 that is for an earlier year after 1983. If you received a payment for an earlier year, it will be shown in box 7, 8, or 9 (described later). See Lump-Sum Election, earlier, for information on how to treat the payment.

Box 4--Social Security Equivalent Benefit Portion of Tier 1 Repaid to RRB in 2016

The figure shown in this box is the total SSEB portion of tier 1 benefits you repaid to the RRB in 2016. You may have repaid a benefit by returning a payment, making a cash refund, or having an amount withheld from your payments. In addition, an amount may have been withheld from your benefits to recover the SSEB overpayment incurred by someone else who is also receiving benefits under your claim number. Also, an amount may have been withheld from another benefit, such as a social security benefit, to recover an SSEB overpayment you received.

The amount in box 4 also includes any SSEB benefits you repaid in 2016 that were for 2016 or for 1 or more years before 2016. All tier 1 repayments for years before 1986 are treated entirely as SSEB benefits.

Example 1. You returned to work for your last railroad employer for the months of June through August 2016. The SSEB portion of your tier 1 benefits was $450 for each of those months. Since you are not allowed to receive benefits for any month you returned to railroad service, you have to make a repayment to the RRB. You returned the benefit payment for June through August 2016. Box 4 of your Form RRB-1099 will show $1,350 ($450 × 3 months) as the SSEB portion of tier 1 benefits you repaid to the RRB.

Example 2. From January through April 2016 you were overpaid $800 in the SSEB portion of tier 1 benefits. From May through August 2016, $200 a month was withheld from your benefit payment to fully recover the $800 overpayment. Box 4 of your Form RRB-1099 will show $800 ($200 × 4 months) as the SSEB portion of tier 1 benefits you repaid to the RRB.

Example 3. As a retired railroad employee, you have been receiving a railroad retirement annuity, including an SSEB portion of tier 1 benefits, since 2015. You also became entitled to, and received from the SSA, a social security benefit of $300 a month beginning May 1, 2016. SSA later authorized the RRB to pay that benefit. In August 2016, the RRB began paying your social security benefit to you and reduced the SSEB portion of your monthly tier 1 benefit by $300. Social security benefits of $900 ($300 × 3 months) covering the period May through July 2016 were kept by the RRB to offset your $900 SSEB overpayment for that same period. Box 4 of your Form RRB-1099 will show $900 as the SSEB portion of tier 1 benefits you repaid to the RRB. (Note. SSA will send you Form SSA-1099, which will include the $900 in benefits paid by them for the months of May through July 2016.)

Box 5--Net Social Security Equivalent Benefit Portion of Tier 1 Paid in 2016

The figure shown in this box is the net amount of the SSEB portion of tier 1 benefits paid to you in 2016. It is the result of subtracting the amount in box 4 from the amount in box 3. If you received more than one Form RRB-1099 for 2016, you should add the amounts in box 5 of all Forms RRB-1099 to determine your net amount of SSEB payments for 2016. Use this amount to determine if any of your benefits are taxable. See Are Any of Your Benefits Taxable, earlier.

If parentheses are around the figure in box 5, it means that the figure in box 4 is larger than the figure in box 3. This is a negative figure and means you repaid more money than you received in 2016. For more information, see Repayments More Than Gross Benefits, earlier.

Box 6--Workers' Compensation Offset in 2016

The figure shown in this box is the amount you received in workers' compensation benefits during the year that was used to offset the full amount of your tier 1 payments. The SSEB portions of your tier 1 benefits shown in boxes 3 and 5 include amounts by which your SSEB payments were reduced for workers' compensation benefits. Your workers' compensation amount is shown in this box separately only for your information. If you did not receive workers' compensation benefits, box 6 is blank.

Example. For 2016, your tier 1 benefit of $450 a month is reduced to $400 because of a $50-a-month workers' compensation offset. Boxes 3 and 5 of your Form RRB-1099 will show $5,400 ($450 × 12 months) as the SSEB portion of tier 1 benefits paid to you by the RRB. The $5,400 is the amount before any deductions were made for the workers' compensation offset. Box 4 will show zero because you did not make any repayments during the year. Box 6 of your form will show $600 ($50 workers' compensation × 12 months). In figuring if any of your benefits are taxable, you must use $5,400 (box 5) as the amount of the SSEB portion of tier 1 benefits paid to you.

Boxes 7 and 8--Social Security Equivalent Benefit Portion of Tier 1 Paid for 2015 or 2014

The figure shown in each applicable box is the amount of SSEB benefits paid to you in 2016 that was for 2015 or 2014. This amount is included in the amount shown in box 3.

Box 9--Social Security Equivalent Benefit Portion of Tier 1 Paid for Years Prior to 2014

The figure shown in this box is the amount of SSEB benefits paid to you in 2016 that was for 2013 and earlier years after 1983. This amount is included in the amount shown in box 3. Any tier 1 benefit paid for a period before 1986 is treated as SSEB.

The figure shown in this box is the total amount of U.S. federal income tax withheld on your 2016 tier 1 SSEB or special guaranty benefit payments. This total is based on the amount of SSEB tax withholding requested on IRS Form W-4V, Voluntary Withholding Request. Include this amount on your income tax return as tax withheld.

Box 11--Medicare Premium Total

This is the total amount of Part B, Part C and/or Part D Medicare premiums deducted from your railroad retirement annuity payments shown on your Form RRB-1099.

Form RRB-1042S, Payments by the Railroad Retirement Board 2016 (Nonresident Aliens)

This form is for nonresident aliens. It contains the following four additional items that do not appear on Form RRB-1099.

Note. If your country of legal residence changed or your tax withholding rate changed during the year, you may receive more than one Form RRB-1042S. To determine your total amounts for the year, you should add the amounts shown on all Forms RRB-1042S you received for that year.

Box 10--Country

The country where you maintain your legal residence is shown in this box. If you maintained legal residence in more than one country during the year, you will receive a separate Form RRB-1042S for each country of legal residence during the year.

Box 11--Rate of Tax

The figure in this box is the rate at which tax was withheld from 85% of the SSEB portion of tier 1 or special guaranty benefit payments you received in 2016. If tax was withheld at more than one rate during the year, you will receive a separate Form RRB-1042S for each rate change during the year. The tax rate for most nonresident aliens is 30%. The figure "0%" or "15%" may appear in this box if you claimed a tax treaty exemption by filing Form RRB-1001 with the RRB. For more information, see Nonresident aliens, earlier, under Are Any of Your Benefits Taxable.

Box 12--Federal Tax Withheld

The figure in this box is the total amount of 2016 U.S. federal income tax withheld from the SSEB portion of your tier 1 or special guaranty benefit payments while you were a legal resident of the country shown in box 10 in 2016. If you received more than one Form RRB-1042S for 2016, add the amounts in box 12 of all Forms RRB-1042S to determine your total amount of U.S. federal income tax withheld from SSEB payments for 2016. Tax is withheld for any month in which you were a nonresident alien (unless you claimed exemption under a tax treaty).

Box 13--Medicare Premium Total

This is the total amount of Part B, Part C and/or Part D Medicare premiums deducted from your railroad retirement annuity payments shown on your Form RRB-1099.

See Pub. 519 for more information on nonresident aliens.

TIP: You should contact your nearest RRB field office (if you reside in the United States) or U.S. consulate/embassy (if you reside outside of the United States) for assistance with your RRB tax statement inquiries. If you are in the United States or Canada, you can call the RRB toll free at 1-877-772-5772. You can also visit the RRB on the Internet at secure.rrb.gov. If you have any questions about how to figure your taxable payments or what amounts to show on your income tax returns, contact the IRS.

How To Get Tax Help

If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away.

Preparing and filing your tax return. Find free options to prepare and file your return on IRS.gov or in your local community if you qualify.

The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $54,000 or less, persons with disabilities, the elderly, and limited-English-speaking taxpayers who need help preparing their own tax returns. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors.

You can go to IRS.gov and click on the Filing tab to see your options for preparing and filing your return which include the following.

Using direct deposit. The fastest way to receive a tax refund is to combine direct deposit and IRS e-file. Direct deposit securely and electronically transfers your refund directly into your financial account. Eight in 10 taxpayers use direct deposit to receive their refund. IRS issues more than 90% of refunds in less than 21 days.

Delayed refund for returns claiming certain credits. Due to changes in the law, the IRS can't issue refunds before February 15, 2017, for returns that claim the earned income credit (EIC) or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Getting a transcript or copy of a return. The quickest way to get a copy of your tax transcript is to go to IRS.gov/transcripts. Click on either "Get Transcript Online" or "Get Transcript by Mail" to order a copy of your transcript. If you prefer, you can:

Understanding an IRS notice or letter. Go to IRS.gov/notices to find additional information about responding to an IRS notice or letter.

Contacting your local IRS office. Keep in mind, many questions can be resolved on IRS.gov without visiting an IRS Tax Assistance Center (TAC). Go to IRS.gov/letushelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can't be handled online or by phone. All TACs now provide service by appointment so you'll know in advance that you can get the service you need without waiting. Before you visit, go to IRS.gov/taclocator to find the nearest TAC, check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on "Local Offices."

Watching IRS videos. The IRS Video portal (IRSvideos.gov) contains video and audio presentations for individuals, small businesses, and tax professionals.

Getting tax information in other languages. For taxpayers whose native language isn't English, we have the following resources available. Taxpayers can find information on IRS.gov in the following languages.

The Taxpayer Advocate Service Is Here To Help You

What is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.

What Can the Taxpayer Advocate Service Do For You?

We can help you resolve problems that you can't resolve with the IRS. And our service is free. If you qualify for our assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate's number is in your local directory and at taxpayeradvocate.irs.gov. You can also call us at 1-877-777-4778.

How Can You Learn About Your Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Our Tax Toolkit at taxpayeradvocate.irs.gov can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

How Else Does the Taxpayer Advocate Service Help Taxpayers?

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at IRS.gov/sams.

Low Income Taxpayer Clinics

Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. To find a clinic near you, visit IRS.gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List.