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William (71), a retired single taxpayer, received a monthly pension of $2,500 ($30,000 annually). He did not contribute any after-tax dollars to the plan while he was working; his employer paid all the costs. William received a 2020 Form 1099-R reporting a gross distribution of $30,000 in box 1, but box 2 of the form is blank. How much of William's pension distribution is taxable

Sagot :

Based on the information given, it should be noted that the amount of William's pension distribution that is taxable is $30000.

From the information given, William is a retired single taxpayer and he received a monthly pension of $2,500 ($30,000 annually). He did not contribute any after-tax dollars to the plan.

It should be noted that pension is counted as a regular income for tax purposes. Therefore, the pension that'll be received by William will be a taxable income

Therefore, the taxable amount will be $30000.

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