Instructions For Form 1040 - Draft Worksheet(S) And Tables - 2008 Page 4

Simplified Method Worksheet—Lines 16a and 16b

Keep for Your Records

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, line 16b. Enter the total pension or annuity payments received in 2008 on Form 1040, line 16a.

1. Enter the total pension or annuity payments received in 2008. Also, enter this amount on Form 1040,

line 16a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter your cost in the plan at the annuity starting date . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

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.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Divide line 2 by the number on line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

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 . . . . . . . . . . . . . 6.

7. Subtract line 6 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Enter the smaller of line 5 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form

1040, line 16b. 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 on

page 22 before entering an amount on line 16b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Was your annuity starting date before 1987?

Leave line 10 blank.

Yes.

STOP

No. Add lines 6 and 8. This is the amount you have recovered tax free through 2008. You will need this number

when you fill out this worksheet next year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

Table 1 for Line 3 Above

AND your annuity starting date was —