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