Things You'll Need:
- Form 1040
- SSA-1099
- Form 1040 instructions
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Step 1
Complete Lines 1 to 21 and 23 to 32 of Form 1040 as normal.
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Step 2
Go to the Social Security Benefits Worksheet on page 27 of Form 1040. This worksheet will go through determining how much of your Social Security disability benefits is taxable.
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Step 3
Add the amounts in Line 5 of all SSA-1099 forms you received and put this in Line 1 of the Worksheet. Divide this by two and put the result in Line 2.
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Step 4
Add all of your taxable income from Form 1040 as found in Lines 7, 8a, 9a, 10 to 14, 15b, 16b, 17 to19 and 21. Put the result in Line 3. Line 4 is your tax-exempt interest as found in Line 8b of Form 1040.
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Step 5
Add Lines 1 through 4 of the worksheet and put the result in Line 5.
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Step 6
Add all your deduction and exemptions as found in Lines 23 to 32 and 36. Put the result in Line 6 of the worksheet. If Line 6 is greater than or equal to Line 5, none of your benefits are taxable because you have more deduction than taxable income. Write 0 in Line 20b of Form 1040. If Line 6 is less than Line 5 then subtract Line 6 from Line 5 and put the result in Line 7.
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Step 7
Enter $32,000 in Line 8 if you are married filing jointly. Enter $25,000 if you are single or married filing separately and have lived apart from your spouse for a year. If you are married filing separately and haven't lived apart multiple Line 7 by 0.85, enter the result in Line 16 and continue the worksheet at Line 17.
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Step 8
Stop if the amount in Line 8 is equal to or greater than the amount in Line 7; none of your benefits are taxable. Otherwise subtract Line 8 from Line 7 and put the result in Line 9.
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Step 9
Follow the directions for Lines 10 through 18. These are simple manipulations and comparisons that will lead to your taxable income. Copy the final result on Line 19 to Form1040 Line 20b. Complete the Rest of Form 1040 as normal and attach your SSA-1099 to it.
