Social Security Benefits

You should receive a Form SSA-1099 showing in box 3 the total social security benefits paid to you. Box 4 will show the amount of any benefits you repaid in 2008. If you received railroad retirement benefits treated as social security, you should receive a Form RRB-1099.

Your Social Security benefits are tax exempt on your tax return if your base amount is below the following amounts:

• $32,000 if your tax return filing status is married filing jointly;
• $25,000 if your tax return filing status is single, head of household, qualifying widow(er), or if you are married filing separately and did not live with your spouse at any time in 2008;
• $0 if your tax return filing status is married filing separately and did live with your spouse at any time in 2008.

To find out whether any of your Social Security benefits are taxable on your tax return, compare the base amount for your tax return filing status with the total of:

• One-half your Social Security benefits, plus
• All your other income, including tax exempt interest.

(Do not reduce your income by any tax exclusions for interest from Series EE US Savings Bonds, for foreign earned income or foreign housing, or for income earned in American Samoa or Puerto Rico by bona fide residents.)

If your income is more than your base amount, part of your Social Security benefits will be taxable and must be reported on your tax return.