 resulting in taxable income as low as possible, resulting in less taxes. We also have to be aware when looking at the income line item of the formula that there could be certain types of incomes that have favorable tax rates not being taxed at ordinary income, but possibly other rates such as qualified dividends, for example, and possibly some capital gains. Looking at page one of the form 1040, we're now looking at line five for pensions and annuities, A and B, B being the taxable amount. We're going to see some similarities here, some crossover to what we looked at in a prior presentation with the IRS, because we have a similar kind of objective from a government perspective for incentivizing us to save for retirement through manipulation of us with the tax code. We then have the form 1099R, this is going to be the form typically used or seen from the financial institution provided to both us and the government. The big box is being box one, the distribution box to the taxable amount of that distribution box four. If there are any withholdings, remembering that if you're talking about people that are earning money and they're working years, they'll get paid typically with W-2 as the reporting form. If they're in their retired years, first a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us, but that's okay, whatever, because our merchandise is better than their stupid stuff anyways. Like our accounting rocks product line, if you're not crunching cords using Excel, you're doing it wrong. A must have product because the fact as everyone knows of accounting being one of the highest forms of artistic expression means accountants have a requirement, the obligation, a duty to share the tools necessary to properly channel the creative muse. And the muse, she rarely speaks more clearly than through the beautiful symmetry of spreadsheets. So get the shirt because the creative muse, she could use a new pair of shoes. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. We're expecting to see more 1099 Rs less W-2s typically, then the distribution code is going to be quite important, and this box will help us to determine whether or not it's going to be online four or five, whether it be an IRA or pension and annuity. Okay, so then if you have any questions about some of those items, you can look at the instructions for the form 1099 Rs, which you could find on the IRS website, and that will help you to determine or interpret what's on the form and possibly do further research if you need to from there. Alright, let's take a look at lines 5A and 5B, pensions and annuities.