Annuity Start Date/Plan Cost for a Widow

[mbakk84]

While filling out my mom's taxes, I am having trouble understanding what date to put as the annuity start date and plan cost.  My dad was receiving retirement payments before he passed.  Then, once he passed, the payments continued (at a lower rate) to my mom.  Any ideas?

[MarilynG1 · Accepted solution]

The annuity start date would be when your dad started receiving his annuity payments.  The 'annuity cost' would be any after-tax amounts that he contributed to the plan.   

This amount may be shown in Box 9b on your 1099-R.

Here's more info on Reporting Annuities. 

[mbakk84]

Thank you!  Is it typical for a widow who only receives pension and Social Security to have to pay in taxes?

[DianeW777]

Yes, it can be.  It all depends on the amount of gross taxable income, age and filing status.

If she is widowed and it did not occur in 2022, then the filing status is likely single and this assumes there are no dependents.  The chart in the link below will help guide you for filing status and then filing requirements based on age and income.

• Do I need to file a federal return this year?

Social Security income is not taxable until at least 50% of that amount combined with other taxable income is greater then $25,000 ($32,000 for married filing jointly) for single, head of household and married filing separately and did not live your spouse all of 2022.