What Is Form SSA-1099?
This question was answered by Taylor, CPAI, Deduction’s AI tax accountant, and Deduction’s licensed CPAs.
Form SSA-1099 is the Social Security Benefit Statement issued by the Social Security Administration each year. It reports the total amount of Social Security benefits received during the prior calendar year and is used to determine whether any portion of those benefits is taxable on your federal return.
Who Receives Form SSA-1099
You receive Form SSA-1099 if you received Social Security retirement, disability (SSDI), or survivor benefits during the year. The SSA typically makes the form available online in January and mails paper copies by January 31. Replacements are available via your my Social Security account at ssa.gov, by calling 1-800-772-1213, or at a local SSA office. Railroad Retirement Board beneficiaries receive Form RRB-1099.
Key Boxes on the Form
Box 3 – Benefits Paid: Total gross Social Security benefits paid during the year.
Box 4 – Benefits Repaid: Any amounts repaid to SSA during the year.
Box 5 – Net Benefits (Box 3 minus Box 4): The figure used to calculate taxability. Report the total benefits from Box 5 on Line 6a of Form 1040. The taxable portion calculated using the Social Security Benefits Worksheet is reported on Line 6b.
Are Social Security Benefits Taxable?
Up to 85% of benefits may be subject to federal income tax based on your combined income: AGI + tax-exempt interest + 50% of Social Security benefits.
- Single - below $25,000: not taxable
- Single - $25,000–$34,000: up to 50% may be taxable
- Single - above $34,000: up to 85% may be taxable
- MFJ - below $32,000: not taxable
- MFJ - $32,000–$44,000: up to 50% may be taxable
- MFJ - above $44,000: up to 85% may be taxable
- MFS taxpayers who lived with their spouse at any time during the year generally have up to 85% of benefits taxable regardless of income level.
Where to Report on Form 1040
Report Box 5 on Line 6a of Form 1040. Use the Social Security Benefits Worksheet in the Form 1040 instructions to calculate the taxable portion (Line 6b). Federal withholding from benefits (elected via Form W-4V) is reported as withholding on your return.
Social Security benefits are not subject to SE tax. Many states - including California, Florida, and Texas - do not tax Social Security benefits at the state level.
Related Questions
- How do I calculate tax on a life insurance policy’s cash surrender value?
- What are Patronage dividends and how do I report those on Form 1099-PATR?
Sources:
IRS Publication 915 - Social Security and Equivalent Railroad Retirement Benefits
IRS Form 1040 Instructions - Lines 6a and 6b / SS Benefits Worksheet
IRC §86 - Social Security and tier 1 railroad retirement benefits
Social Security Administration - my Social Security (get SSA-1099)
The information provided does not, and is not intended to, constitute legal advice.
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