Yes. The remainder of the cost not yet recovered by the decedent is an itemized deduction on line 16, Schedule A.
Exclusion limited to cost. (IRS Publication 575)
If your annuity starting date is after 1986, the total amount of annuity income that you can exclude over the years as a recovery of the cost can't exceed your total cost. Any unrecovered cost at your (or the last annuitant's) death is allowed as an itemized deduction on the final return of the decedent.
Prior to 1987 it's likely the three year rule would have been used which means there would be no cost left to recover.
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