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I took a loss when cashing in an annuity. How do I report it so that I deduct it?
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posted
June 6, 2019
10:23 AM
last updated
June 06, 2019
10:23 AM
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I took a loss when cashing in an annuity. How do I report it so that I deduct it?
You can deduct a loss on an annuity if the annuity was fully liquidated and there was a loss on the account. The loss would be deductible as a miscellaneous itemized deduction subject to the 2% of adjusted gross income floor. If there were withdrawals or distributions prior to the liquidation, those would have to be accounted for as recovery of your investment.
To take a deduction like this, follow these steps:
- Login to your return.
- Click on the Federal option in the left hand navigation bar.
- Click on the Deductions and Credits tab at the top of the screen.
- Scroll down in the list of Deductions and Credits to the option section labeled Other Deductions and Credits.
- Click on the option labeled Other Deductible Expenses.
- Continue until your each a screen labeled "Did you have any of these other deductions?" and click Yes.
- Enter your loss in the line labeled "Unrecovered investment in annuity"
June 6, 2019
10:23 AM
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