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Returning Member
posted Jan 27, 2024 4:07:57 PM

have lifetime joint survivor nonqualified annuity. Began getting 10,500 this year. Invested 100,000 in 2011. Pub 575:invested costs are recovered. does turbo calculate?

Again, cost or investment in annuity contract can be recoveredper IRS Pub 575 page 11. Does turbo tax do this calculation using the simplified method  worksheet? Did not do it as I added this information!

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1 Best answer
Expert Alumni
Jan 28, 2024 4:53:47 PM

The Simplified method cannot be used with a non-qualified annuity.  The insurance company that issued the annuity should be calculating the taxable portion and reporting it in Box 2a of Form 1099-R. 

1 Replies
Expert Alumni
Jan 28, 2024 4:53:47 PM

The Simplified method cannot be used with a non-qualified annuity.  The insurance company that issued the annuity should be calculating the taxable portion and reporting it in Box 2a of Form 1099-R.