Internal Revenue Service United States Department of the Treasury
Level Basic Intermediate Advanced Military International

Income — Retirement Income; Form 1040, Lines 15-16

Taxable Pensions and Annuities

Fully Taxable Pensions and Annuities

Pension and annuity income is reported on Form 1099-R (box 7 is not checked), Form CSA 1099-R, and Form RRB 1099-R. Generally, pension or annuity payments are fully taxable if the following is true:

  • Taxpayers did not pay any part of the cost of their employee pensions or annuities
  • Employers did not withhold part of the cost from the taxpayers' pay while they worked
  • Employers withheld part of the cost from the taxpayers' "before-tax" pay while they worked
Tip

Social security benefits and IRA distributions are not reported on the pension line of the tax return.