How much of annuity payments must I include?
Posted by MarkAug 15
I purchased a 20yr annuity for ,000. I will receive payments of 0 each month of annuity’s life. How much of the annuity payments must be included in my 2009 gross income? I received all 12 payments this year. Also, how much of these annuity payments may be excluded from gross income?
Your annuity provider is required to send you a Form 1099-R. It will show the gross amount that you received and the taxable amount as well. If you didn’t receive a 1099-R, call the company and request one.
You can exclude from taxable income the portion of the payment that is your own money coming back to you. I THINK that the tax-free amount would be $1,000 per year–but you need to get the 1099-R to be sure.
my annuity sends me a 1099, doesn’t yours?
Really? Who sold you an annuity making such a generous payment? That’s a return of 22%. Not likely!
The best way is to save and invest 10% of ur income,
better still 15% will guarantee U a super retirement .