DO PENSION FUNDS GET TAXED...i have collected all my accumulated pension ...how do i calculate tax on it?

You should have received a 1099-R showing both the gross distribution (Box 1) and taxable amount (Box 2a) of your pension payments.

The taxable amount of your pension is taxed as ordinary income.

The pension gross distribution is entered on line 16a of Form 1040 and the taxable amount is entered on line 16b of Form 1040.

Pension funds are not taxes. Pension recipients pay tax on their non-contributory payouts as regular income.

If the 1099-R does not show the taxable amount in 2a, there should be a number in 9b. You should use the "Simplified Method" to determine the taxable amount. See pages 22-23 of the 1040 Instructions.

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