My brother and I each received 50% of our mother's annuity in 2023 upon her passing. We both chose to pay all taxes up front and take the lump sum payments. When I add the 1099-R to my tax return, I go from having a significant refund to owing $1600. Why am I being taxed twice on the inherited annuity if I already paid these taxes when we took the lump sum payment? I feel now that I am being punished because reporting the income most likely threw me into a higher tax bracket.
