2006-07-15 18:45:33 · 3 answers · asked by stumped 1 in Business & Finance ➔ Taxes ➔ United States
By annuity, I'm assuming you mean the kind that you receive from an insurance contract or something. If that's the case, you'll receive a Form 1099-R in January, and it will have information regarding "Gross Distribution" Box 1, and "Taxable Distribution" Box 2. The amount that will be reported on your tax return is the amount in Box 2. This is considered "ordinary income" and doesn't receive any special tax treatment. However, if this is a distribution from a contract where you have contributed your own after tax dollars (like a non-deductible IRA), the entire portion may not be taxable. If that's the case, you may want to talk to an accountant in person to sort through the details.
2006-07-16 03:22:17 · answer #1 · answered by SuzeY 5 · 0⤊ 0⤋
Very simple. You report the annuity as an installment sale, and are taxed based on the amount you receive in any given year.
2006-07-15 20:42:10 · answer #2 · answered by G-man 2 · 0⤊ 0⤋
Credit options online
2015-02-26 15:23:01 · answer #3 · answered by Jacynth 1 · 0⤊ 0⤋