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Individual Income Tax Guide
Line 16a & 16b – Pensions and Annuities(a), Taxable Amount (b): The total amount of pension and annuity payments are reported on line 16a and the taxable amount are reported online 16b. Pension and annuity payments include distributions from 401(k), 403(b), and governmental 457(b) plans.
You should receive a Form 1099-
NOTE: If a 1099-
Fully taxable pensions and annuities: Your payments are fully taxable if (a) you did not contribute to the cost (see Cost, below) of your pension or annuity, or (b) you got your entire cost back tax free before 2016. But see “Insurance Premiums for Retired Public Safety Officers,” below. If your pension or annuity is fully taxable, enter the total pension or annuity payments (from Form(s) 1099-
Fully taxable pensions and annuities also include military retirement pay shown on Form 1099-
Partially taxable pensions and annuities: Enter the total pension or annuity payments (from Form 1099-
You can ask the IRS to figure the taxable part for you for a $1,000 fee. For details, see Publication 939.
If your Form 1099-
Insurance premiums for retired public safety officers: If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for coverage by an accident or health plan or a long-
The premiums can be for coverage for you, your spouse, or dependents. The distribution must be from a plan maintained by the employer from which you retired as a public safety officer. Also, the distribution must be made directly from the plan to the provider of the accident or health plan or long-
An eligible retirement plan is a governmental plan that is:
If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. The amount shown in box 2a of Form 1099-
Chapter 2 – Income
Page 5, Form 1040, Line 16