Possibly. You should receive a 1099R for a distribution from the annuity. If any earnings on the annuity are distributed out, only that portion would be taxable, 1099Rs are required to be mailed or provided electronically to recipients by 1/31. If you have not received a 1099R and you did receive a distribution from the annuity in 2020, contact your annuity provider or log in to your account online and look for the tax forms areas.
The 1099 Series are informational reporting forms submitted to the IRS by third parties. The IRS then matches the form information to your tax return to insure all income is reported and taxed. If you do not include a 1099 received from a third party on your tax return, you will receive a notice from the IRS asking why. This is the CP2000 matching notice. If you receive this notice from the IRS, make sure and respond by the date indicate on the notice.
