Taxable amounts are contained in most benefit payments. PERS calculates these amounts, following IRS guidelines, for reporting purposes. Taxable amounts include, for IRS reporting purposes, any amounts on which you have not already paid income tax.
PERS also calculates the non-taxable amount of your benefit, if any, and reports it on Form 1099R.
For more information on the taxable portion of your income, use the instructions and tables in IRS Publication 575, Pension and Annuity Income.