Expert: Arthur Naman - 2/19/2009

Question
Hello, I receive a private pension and was wondering if this year I will not have to pay tax on it.  I turn 59 1/2 in september and am unsure if I will be exempt from tax the entire year or only the few months after turning 59 1/2.

Answer
You should receive a form 1099 from the payor; in fact, the payor is required by the IRS to send the 1099 form. The 1099 should report to you the recipient, the portion that is taxable / non-taxable.

The answer as to the portion taxable to you depends on a variety of factors, your contributions, contributions by your employer (or former employer), earnings on the pension, etc.

If this is not reported to you, please contact the payor. Also who will be preparing your tax return -- the preparer may be the person to determine the taxable portion if it is not obvious to you. The preparer should be able to explain to you how the taxable portion is determined.