Final answer:
A pension may be partly taxable depending on the recipient's tax situation. Factors such as the type of pension plan, the age of the recipient, and their total income determine the taxability of a pension.
Step-by-step explanation:
A pension may be partly taxable under certain circumstances. When a person receives a pension, the amount they receive is considered taxable income. However, the taxability of a pension depends on various factors including the type of pension plan, the age of the recipient, and their total income. If a person has other sources of income in addition to their pension, such as Social Security benefits or income from investments, a portion of their pension may be subject to federal and state income taxes. The amount of taxable pension income can be calculated using IRS guidelines and the recipient's individual tax situation.