How do I calculate taxes for a Non Qualifying Annuity with taxable amount not determined on 1099R. First year of receiving distribution

[potterway]

This annuity was purchased using pre tax dollars.

[ToddL · Accepted solution]

If the annuity was purchased with pre-tax dollars, then the entire distribution will be taxable, however, non-qualified annuities are typically purchased with after-tax money.

Often (not always), when the taxable portion is not determined (reported on the 1099-R), then some portion of the distribution is a return of after-tax money. You should contact the issuer to make sure you have a non-qualified annuity.

Qualified annuities (such as annuities in an employer-sponsored retirement plan or an IRA) are typically purchased with pre-tax money, so withdrawals are fully taxed as ordinary income.

Non-qualified annuities are typically purchased with after-tax money. Distributions are taxable upon withdrawal, but only the earnings portion of the distribution is taxed.

[pat1]

IN TT the entire amount on the nonqualified 1099R is being included as income.  Where do i show that the earnings only are taxable

[jimyemma]

Same problem for me this year (2018 taxes). TurboTax premiere is not showing an option to put in tax basis or principal on original non-qualified annutiy.