Chapter 10: Social Security And Equivalent Railroad Retirement Benefits

Front 1

What is the full retirement age for taxpayers born before 1938? 1941? 1970?

Back 1

Before 1938 – 65; 1941 – 65 years and 8 months; 1970 - 67

Front 2

On what form are social security benefits reported to the recipient?

Back 2

Form SSA-1099

Front 3

What is the maximum amount of SS/equivalent tier 1 RR benefits that is subject to tax?

Back 3

Up to 85% of benefits

Front 4

Can form 1040A be filed for a taxpayer whose SS/equivalent tier 1 RR benefits are taxable?

Back 4

Yes

Front 5

How is modified AGI computed for purposes of taxable social security benefits?

Back 5

Regular AGI (without SS benefits) plus any excluded adoption benefits; tax exempt interest; excluded interest from qualified US savings bonds; excluded foreign earned income or housing or certain US possession income; student loan interest deduction; and tuition and fees deduction

Front 6

Under what circumstances might social security/tier 1 railroad retirement benefits be taxable if the taxpayer had no other source of income?

Back 6

If the taxpayer is using the married filing separately status and lived with his spouse at any time during the year

Front 7

Are supplemental security income (SSI) payments taxable?

Back 7

No

Front 8

Are benefits received for a child ever taxable to the parent?

Back 8

No. The benefits, if taxable, must be included in the income of the person who has the legal right to receive the income

Front 9

What form is used to report pension income to the recipient?

Back 9

Form 1099-R

Front 10

What pensions are fully taxable?

Back 10

Pensions to which the taxpayer contributed no after-tax money to the cost, or from which he has already recovered his after-tax cost

Front 11

Under what circumstances would a pension be partly taxable?

Back 11

When the taxpayer has contributed after-tax money to the cost and has not yet recovered it

Front 12

What does recovery of cost mean?

Back 12

Getting back amounts paid in (that were taxed in previous years) without being taxed again. These amounts are not income or gain.

Front 13

Where is pension income reported on the tax return?

Back 13

Fully taxable pensions generally are reported on Form 1040, line 16b or Form 1040A, line 12b.

Front 14

Where is pension income reported on the tax return, if partially taxable?

Back 14

the gross amount received is entered on lines 16a (12a) and the taxable portion on line 16b (12b)

Front 15

In cases involving partly taxable pensions, where is taxable amount determined?

Back 15

Pension/Annuity worksheet

Front 16

When are traditional IRA distributions fully taxable?

Back 16

When all of the IRA contributions were fully deductible

Front 17

When would a traditional IRA distribution be partly taxable

Back 17

When the taxpayer has made nondeductible contributions

Front 18

What form is required to determine the taxable portion of a traditional or Roth IRA distributions

Back 18

Form 8606

Front 19

When is a Roth IRA distribution exempt from taxation?

Back 19

When it is a qualified distribution that is:
-taken after the end of the five-year period that began January 1st of the year the account was set up
-taken after the account owner has
died
-taken after become disabled
-reached age 59 ½
-used to buy, build, or rebuild the taxpayer’s first home
-distribution is a return of the taxpayer’s regular contributions

Front 20

Where are fully taxable IRA distributions reported on the tax return?

Back 20

Form 1040, line 15b or Form 1040A, line 11b

Front 21

Where is income tax withheld from a pension or IRA distribution reported on the tax return?

Back 21

same as all other income tax withheld

Front 22

hat is the amount of Social Security and Tier 1 Railroad Retirement benefits to subtract on the Oregon return?

Back 22

Subtract the amount taxable on the federal return

Front 23

How do you figure the percentage to subtract for federal pensions?

Back 23

Months of service before 10/1/91 divided by the total months of service

Front 24

Once the percentage to subtract for federal pensions, will it ever change?

Back 24

No.

Front 25

Can you claim both the Oregon credit for the elderly or disabled and the retirement income credit?

Back 25

No, you can claim one or the other, but not both.

Front 26

what is the difference between the the Oregon credit for the elderly or disabled, and the retirement income credit?

Back 26

-the taxpayer or spouse must be 65 or older for the credit for the elderly or disabled.
-either spouse only needs to be age 62 for the retirement income credit

Front 27

What is not part of household income (Retirement Income Credit calculation)?

Back 27

Social Security, Tier 1 Railroad, state income tax refund, and return of basis.

Front 28

When considering household income for the OR Retirement Income Credit , what two items have limits and what are those limits?

Back 28

Gifts over $500 are included in household income and losses are limited to $1,000

Front 29

If a lump-sum distribution is reported directly on federal Form 4972 for special federal tax treatment, what happens on the Oregon return?

Back 29

An addition of all or part of the distribution not included in federal AGI.