To determine the taxable portion of Rebecca's pension from Riverside Enterprises using the simplified method, you would need to know the total pension amount received and the number of payments Rebecca expects to receive over her lifetime.
The simplified method allows Rebecca to divide the total pension amount received by the number of expected lifetime payments to find out the tax-free portion of each payment.
For example, let's assume Rebecca receives a total pension amount of $60,000 and expects to receive 240 payments over her lifetime. Using the simplified method, the taxable portion of each payment can be calculated as follows:
Taxable Portion = Total Pension Amount / Number of Payments
Taxable Portion = $60,000 / 240
Taxable Portion = $250
Therefore, using the simplified method, the taxable portion of Rebecca's pension from Riverside Enterprises would be $250 for each payment she receives.
What is the taxable portion of Rebecca’s pension from Riverside Enterprises using the simplified method?
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