1099-% Lines1, 2a, 2b for an Annuity

Line 1 and Line 2a are the same value. Line 2b is marked as Taxable Amount not determined. However, the taxable amount is determined and known by the Annuity company. This was a partial distribution from the Annuity. Shouldn't the 2b be Total Distribution?

posted

No, Box 2B should not have "Total Distribution" marked. That would indicate that you took 100% of the account/contract balance. Box 2a and 2b can be confusing. The amount in Box 2a shows the portion of the distribution that is generally taxable. However, the amount that is actually taxable may be different due to any one of several factors, one of which is if it is an annuity payment to which the taxpayer contributed. When box 2b is marked, it indicates that the payer was unable to determine the taxable amount, so it's up to the taxpayer to determine it. That said, the amount in Box 2b may be the correct taxable amount.

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