How much of your Pension & Annuity Income goes on line 15 & 16 of IRS 1040 and
thus counts towards MAGI Income for Covered CA subsidies?

List of what Income Counts for MAGI

Modified Adjusted Gross Income 
Covered CA

Covered CA list of countable income for MAGI

Steve Shorr - Covered CA Certified Agent

Steve Shorr - Covered CA Certified Agent -
Appoint Us  
No Charge for Complementary Year Around Service -
Same price as Covered CA or Direct with Insurance Company
Get instant Quotes, including APTC Subsidy Calculation 
Set up time for phone, Skype or face to face meeting  

Video on how great agents are

Basic Taxation of Annuities  Video


Form 1040 - Pension & Annuity Income?
Form 1040 – Pension & Annuity Income?

Publication 575 reviews the tax treatment of distributions you receive from pension and annuity plans and also shows you how to report the income on your federal income tax return.

How these distributions are taxed depends on whether they are periodic payments (amounts received as an annuity) that are paid at regular intervals over several years or nonperiodic payments (amounts not received as an annuity).

What is covered in publication 575?   This publication contains information that you need to understand the following topics.

  • How to figure the tax-free part of periodic payments under a pension or annuity plan, including using a simple worksheet for payments under a qualified plan.
  • How to figure the tax-free part of nonperiodic payments from qualified and nonqualified plans, and how to use the optional methods to figure the tax on lump-sum distributions from pension, stock bonus, and profit-sharing plans.
  • How to roll over certain distributions from a retirement plan into another retirement plan or IRA.
  • How to report disability payments, and how beneficiaries and survivors of employees and retirees must report benefits paid to them.
  • How to report railroad retirement benefits.
  • When additional taxes on certain distributions may apply (including the tax on early distributions and the tax on excess accumulation).

FAQs / Ask Us a Question

Publication 524, Credit for the Elderly or the Disabled   Publication 560, Retirement Plans for Small Business  

Table of Contents

2 comments on “Annuity Income? IRA, Pension # 1040 Line 16a

  1. I have just begun to receive retirement income that will make me ineligible to continue to receive Medi-cal benefits.

    I have questions about the Kaiser Program…

Leave a Reply

Your email address will not be published. logo