2007-11-17 16:39:03 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
What is the source of the money in the annuity?
If it is from a tax-sheltered retirement account or a traditional IRA, then your payments are going to be fully taxable.
In other cases, only part of the payment is taxable.
If the source is life insurance or a trust, go to a tax attorney or estate planner with the full details before you make any decisions about how to receive the payments.
2007-11-17 21:06:10 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
Generally annuity payments in excess of what was paid for the annuity contract are taxable as ordinary income if the annuity was issued by a third party insurance company. The result might be different if the annuity is a private annuity issued in exchange for something that your parents sold.
2007-11-17 18:30:07 · answer #2 · answered by mattapan26 7 · 0⤊ 0⤋
You need to provide more details here.
2007-11-17 16:58:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋