Publication 575: Pension and Annuity Income; Additional Material

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Table of Contents

Worksheet A. Simplified Method (Keep for Your Records)

1.	Enter the total pension or annuity payments received this year. Also, add this amount to the total for Form 1040, line 16a, or Form 1040A, line 12a			1.
2.	Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion			2.
	Note:If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below. Otherwise, go to line 3.
3.	Enter the appropriate number from Table 1 below. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below.			3.
4.	Divide line 2 by line 3			4.
5.	Multiply line 4 by the number of months for which this year's payments were made. If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Otherwise go to line 6			5.
6.	Enter any amounts previously recovered tax free in years after 1986			6.
7.	Subtract line 6 from line 2			7.
8.	Enter the smaller of line 5 or line 7			8.
9.	Taxable amount for year. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, add this amount to the total for Form 1040, line 16b, or Form 1040A, line 12b. Note: If your Form 1099-R shows a larger taxable amount, use the amount on this line instead			9.
10.	Add lines 6 and 8			10.
11.	Balance of cost to be recovered. Subtract line 10 from line 2			11.

Table 1 for Line 3 Above
	IF the age at annuity starting date was	AND your annuity starting date was—

		before November 19, 1996, enter on line 3	after November 18, 1996, enter on line 3
	55 or under	300	360
	56–60	260	310
	61–65	240	260
	66–70	170	210
	71 or over	120	160
Table 2 for Line 3 Above
	IF the combined ages at annuity starting date were	THEN enter on line 3
	110 or under	410
	111–120	360
	121–130	310
	131–140	260
	141 or over	210