In Oct 2019 we cashed in an annuity (total withdrawal) to purchase a smaller home. I expected taxes but wasn't expecting the taxes to be so outrageous. I am floored to say the least. We are both on disability and have not paid taxes in 10 years however for 2019 we must pay taxes on annuity taxable amount PLUS 85% of our disability checks. Is this correct? Thanks for your help.
