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?

What counts as income?

List of what Income Counts for MAGI

Modified Adjusted Gross Income 
Covered CA

Covered CA list of countable income for MAGI

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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).

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

Table of Contents

Taxable & Non Taxable Income Publication 525 

publication 525 taxable and non taxable income

Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance isn't included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you.

Holiday gifts. If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, don’t include the value of the gift in your income. However, if your employer gives you cash, a gift certificate, or a similar item that you can easily exchange for cash, you include the value of that gift as extra salary or wages regardless of the amount involved.

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…

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