@jamiemhornbaker - normally, the firm will withhold a certain amount (I think 10% is the requirement), but the impact on your tax return could be very different - higher or lower.
can you explain more of what you are really asking? did you receive a death benefit? did the firm explain whether or not they withheld taxes from the payment? are you trying to determine how much to pay as an esstimated tax payment?
just need more details.
First you need to find out how much of the annuity distributions will be taxable ... ask the annuity plan administrator. Once you know that figure then doing some tax planning will be easier to do.
I am receiving a death benefits from my mother's passing. The packet I received from the company does not have any info about how much or anything. It will not automatically take out taxes. My options are no taxes, a percentage, or a specific dollar amount. I do know that close to $15,000 is from interest. I do not know if the money put into the annuity was taxed or not, it was rolled over from when my mother received it from my grandmother. I am wanting to have taxes paid on it when it is withdrawn so there is not a huge impact at tax time.
@jamiemhornbaker suggest contacting the firm and ask them how much of the payout is taxable.
what is your tax bracket? I'd have them withheld a) your tax bracket times b) the amount of the payout that is taxable..... and don't forget State taxes if your state collects income tax!