Publication 575: Pension And Annuity Income

This guide clarifies how taxes apply to distributions received from pension and annuity plans, explaining how to report them on your federal income tax return.

What is Publication 575?

Publication 575 is an Internal Revenue Service (IRS) resource that explains how to report pension and annuity income on your federal income tax return. It clarifies the tax treatment of distributions received from various retirement plans, allowing you to determine the taxable portion and report it accurately.

What's the purpose of Publication 575?

Publication 575 helps you determine how much of your pension or annuity payments are taxable and how to report them on your tax return.

What does Publication 575 cover?

It covers both periodic payments (received regularly over several years) and nonperiodic payments (lump sums or other one-time distributions).

What does Publication 575 not cover?

This publication does not delve into the specific tax treatment of your situation. If you need additional guidance, refer to Publication 939 (General Rule for Pensions and Annuities) or consult a tax professional.

What you'll find in Publication 575?

A. Taxability of Distributions: Explains which parts of your payments are considered taxable income and which may be non-taxable.

B. Reporting on Form 1040: Guides you on reporting your income using the appropriate lines on your tax return.

C. Special Situations: Addresses specific scenarios like rollovers, disability payments, and survivor benefits.

D. Resources: Provides references to other relevant publications and forms for further information.

Benefits of Using Publication 575:

  • Helps you understand how much of your pension or annuity income is taxable.
  • Guides you on how to report this income accurately on your tax return.
  • Provides information on special tax rules that may apply to your specific situation.