My parent had savings accounts around $150k that the bank suggested she put into an annuity account for 5 years. It's matured, and she withdrew the funds and put them back into savings. The 1099R indicates that the Gross Distribution was the original investment + the interest earned, which makes sense because she did take it all. However, TT is including the entire amount as her income, (it is showing her taxable income correctly as the interest earned in box ), but I don't think it's correct to include the whole thing in her income since the original investment was her money to begin with. It is indicating on the tax form that it was income. Is there something I'm missing?
