Lola, age $67,$ began receiving a $$1,000$ monthly annuity in the current year upon the death of her husband. She received seven payments in the current year. Her husband contributed $$48,300$ to the qualified

employee plan.

Use the Simplified Method Worksheet below to calculate Lola's taxable amount from the annuity.

If your answer is zero, enter $"0".$ If required, round your answers to the nearest whole dollar.

Simplified Method Worksheet

Enter total amount received this year.

Enter cost in the plan at the annuity starting date.

$

Age at annuity starting date

$

Divide line $2$ by line $3.$

$

Multiply line $4$ by the number of monthly payments this year. If the annuity

starting date was before $1987,$ also enter this amount on line $8,$ and skip lines $6$

and $7.$ Otherwise, go to line $6.$

$

Enter the amount, if any, recovered tax$-$free in prior years.

$

Subtract line $6$ from line $2.$

$

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

$

Taxable amount this year: Subtract line $8$ from line $1.$ Do not enter less than zero. $9.$ &