The filer's filing status, net social security benefits and taxable income are all needed to complete Worksheet 1. Taxable income includes wages, taxable interest income and taxable pension payments, states the IRS.
Box 5 of Form SSA-1099 and Form RRB-1099 contains the net social security benefits or tier 1 railroad retirement benefits that are counted toward the taxable amount of the benefits, as stated by the IRS. Taxable income can be found on the filer's 1040 by combining lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21, or on the filer's 1040A by combining lines 7, 8a, 9a, 10, 11b, 12b, and 13, as well as any amount entered on line 8b for the 1040 or 1040A. Exclusions and adjustments are then taken into account, along with the filer's filing status. Exclusions and adjustments include adoption benefits, foreign earned income or housing, as well as certain incomes from residents of American Samoa or Puerto Rico.
For the 2014 filing year, the income minus any adjustments is then compared to either $32,000 for those filing under married filing jointly or $25,000 for those filing under single, head of household, widow or widower or those filing as married filing separately and have lived apart from their spouses for all of 2014, states the IRS.