Skip to main content
Scenario 4

Scenario 4

Matt

  • Born in 1960
  • Filing single
  • He is receiving:
    • public retirement and pension benefits of $12,000 from SSA exempt employment, and
    • private retirement and pension benefits of $20,000.
  • He retired on April 30, 2012.

Step 1 - Complete "Which Section of Form 4884 Should I Complete"

He answers the questionnaire in Form 4884 instructions as follows:

  • Question 1  –   Yes
  • Question 2  –   No
  • Question 3 – Single and identifies himself as the key person.
  • Question 4 – 1960, as he is the key person.
  • Question 5 – No
  • Question 6 – No
  • Question 7 – No
  • Question 8 – Yes
  • Question 9 – Yes and he is instructed to complete Section B of Form 4884.
Step 2 - Complete Form 4884

Matt proceeds with completing Form 4884.

He enters his information on lines 1 through 4, skipping line 5 as he is filing single. He skips box 6a as it does not apply, but checks box 6b since he has retirement and pension benefits from SSA exempt employment, and he was retired as of January 1, 2013.

He did not receive retirement and pension benefits from a deceased spouse, so he skips Part 2.

In Part 3, he fills out a separate line or each retirement and pension benefit distribution, checking the box for “Public “under 8A for his public retirement and pension benefits and checking the box for “Private” under 8A for his private retirement and pension benefits.

Step 3 - Continue Form 4884, Section B

Matt enters $32,000 on Form 4884, line 17 (Section B).

As Matt is receiving retirement and pension benefits from SSA exempt employment, he had previously checked box 24C on Schedule 1 and box 6b on Form 4884. This indicates his maximum retirement and pension benefit subtraction will be increased by an additional $15,000.

Step 4 - Carry to Schedule 1
Matt carries the amount from Form 4884, line 17 to Schedule 1, line 27.