What is the amount of Jerry's pension income taxable by California?

What is the amount of Jerry's pension income taxable by California?

• A. $0
• B. $6,000
• C. $12,000
• D. $3,000

Answer: (C)

In California, pension income is generally considered taxable to the extent that it is not subject to federal tax because of the state's conformity to federal tax laws, but with some exceptions. In this scenario, if Jerry has a total pension income of $12,000 and this amount is fully taxable under federal guidelines, California would also impose taxes on this amount, leading to the conclusion that the taxable portion of Jerry's pension income is indeed $12,000. This amount reflects full taxation and highlights that California recognizes pension income for its tax base, unlike some other states that may have different rules regarding the taxation of retirement income. Therefore, if other amounts, such as $0, $6,000, or $3,000 were presented, they would not accurately reflect the total fully taxable pension income that Jerry would report in California.

In California, pension income is generally considered taxable to the extent that it is not subject to federal tax because of the state's conformity to federal tax laws, but with some exceptions. In this scenario, if Jerry has a total pension income of $12,000 and this amount is fully taxable under federal guidelines, California would also impose taxes on this amount, leading to the conclusion that the taxable portion of Jerry's pension income is indeed $12,000.

This amount reflects full taxation and highlights that California recognizes pension income for its tax base, unlike some other states that may have different rules regarding the taxation of retirement income. Therefore, if other amounts, such as $0, $6,000, or $3,000 were presented, they would not accurately reflect the total fully taxable pension income that Jerry would report in California.