On September 1 of the current year, an unmarried taxpayer retires and begins receiving monthly pension checks of $1,800. During his working years, the taxpayer contributed $6,000 to his employer's pension plan with after-tax dollars. Using the taxpayer's age at the time the payments begin, the taxpayer's number of expected monthly payments is 240. Of the $7,200 in pension benefits the taxpayer received during the current year, what amount must he include in gross income?
On September 1 of the current year, an unmarried taxpayer retires and begins receiving monthly pension checks of $1,800. During his working years, the taxpayer contributed $6,000 to his employer's pension plan with after-tax dollars. Using the taxpayer's age at the time the payments begin, the taxpayer's number of expected monthly payments is 240. Of the $7,200 in pension benefits the taxpayer received during the current year, what amount must he include in gross income?
Chapter4: Income Tax Withholding
Section: Chapter Questions
Problem 11QR
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Transcribed Image Text:On September 1 of the current year, an unmarried taxpayer retires
and begins receiving monthly pension checks of $1,800. During his
working years, the taxpayer contributed $6,000 to his employer's
pension plan with after-tax dollars. Using the taxpayer's age at the
time the payments begin, the taxpayer's number of expected monthly
payments is 240. Of the $7,200 in pension benefits the taxpayer
received during the current year, what amount must he include in
gross income?
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