A gift annuity is deducted as a charitable donation, a component of itemized deductions. You deduct charitable donations in the Federal>Deductions & Credits>Charitable Donations section. Or, select the magnifying glass icon in the upper left, and enter "charitable" in the search box, then click "Go To Donations" in the "Where do I enter my donations?" box.
The deduction is equal to the amount of the contribution to the charity, less the "present value" of the payments charity will make back to you. The present value of the payments is determined using life expectancy tables and assumed earnings prescribed by the IRS.
This website, although not authoritative for tax purposes, provides a good overview of gift annuitie....
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
