Simplified Method Worksheet—Lines 4c and 4d

Simplified Method Worksheet—Lines 4c and 4d

Summary: This is the simplified method worksheet. It is used to figure the taxable part of your pension or annuity using the simplified method.

Before you begin: If you are the beneficiary of a deceased employee or former employee who died before August 21, 1996, include any death benefit exclusion that you are entitled to (up to $5,000) in the amount entered on line 2 below.

Note. If you had more than one partially taxable pension or annuity, figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040 or 1040-SR, line 4d. Enter the total pension or annuity payments received in 2019 on Form 1040 or 1040-SR, line 4c.

The line items to be completed are:

"1. Enter the total pension or annuity payments from Form 1099-R, box 1. Also, enter this amount on Form 1040 or 1040-SR, line 4c." field
"2. Enter your cost in the plan at the annuity starting date. Note. If 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 (even if the amount of your pension or annuity has changed). Otherwise, go to line 3." field
"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." field
"4. Divide line 2 by the number on line 3." field
"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, skip lines 6 and 7 and enter this amount on line 8. Otherwise, go to line 6." field
"6. Enter the amount, if any, recovered tax free in years after 1986. If you completed this worksheet last year, enter the amount from line 10 of last year’s worksheet." field
"7.Subtract line 6 from line 2." field
"8. Enter the smaller of line 5 or line 7." field
"9. Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form 1040 or 1040-SR, line 4c. If your Form 1099-R shows a larger amount, use the amount on this line instead of the amount from Form 1099-R. If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers before entering an amount on line 4d." field
"10. Was your annuity starting date before 1987?"
"Yes. STOP. Leave line 10 blank."checkbox
"No. Add lines 6 and 8. This is the amount you have recovered tax free through 2019. You will need this number when you fill out this worksheet next year." checkbox, field

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 AND your annuity starting date was 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 older 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 older 210