Simplified Method (Pub 575)
The Simplified Method tables are the same for both years; the year affects only how the taxable amount sits in your overall return.
A single-life annuity uses IRS Table 1 and your age. A joint and survivor annuity uses Table 2 and the combined ages of both annuitants.
Your age on the annuity starting date (the first day of the first period a payment was due), in whole years.
Only used for a joint and survivor annuity. Combined with your age to read Table 2. Leave as is for a single-life annuity.
Your after-tax contributions, the investment in the contract, from box 9b of Form 1099-R. Enter 0 if you made no after-tax contributions; the pension is then fully taxable.
The gross monthly pension or annuity payment (box 1 of Form 1099-R divided by the months received).
How many monthly payments you received in the tax year. Use 12 for a full year, fewer in the first or final year.
Total tax-free amounts you have already excluded in prior years (line 10 of last year's worksheet). Enter 0 for the first year.
Used to estimate the federal income tax on the taxable part. Pension income is ordinary income stacked on your other income.
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Enter your cost, age, and payment
to see the tax-free and taxable split