I was not charged taxes on my traditional ira or annuity withdrawals?

[taxes19511]

How come I was not taxed on traditional annuity withdrawal?

[xmasbaby0]

You could ask the custodian of the account to withhold tax if that is not being done.   You will receive a 1099R in late January/early February.  You will enter the 1099R on your 2021 tax return and pay tax if you owe.

[taxes19511]

Again, I am wording this question a bit differently hoping to get some kind of answer that actually does answer the original inquiry.  I live in Georgia.  Turbotax did NOT count my IRA and annuity withdrawals as income and I should be paying taxes on these withdrawals?  Why is this.  I do not  and never did have taxes taken out ahead of time.  These are monies that taxes were never paid on.  I guess I will find another tax preparer since turbotax does not seem to be correct and I can't get an answer.  I am sure the IRA will send me a letter soon.  Sucks because I live on a fixed income and do not like surprises.  Thanks for a correct answer.  

[VolvoGirl]

For 2020 withdrawals?  Check your 1040 line 4b and 5b.  Do you have a taxable amount on the b lines?  Then it was added in your income.   Maybe you didn't owe any tax on your total income or you had enough withholding and credits to cover the tax.

[DoninGA]

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@taxes19511 wrote:

Again, I am wording this question a bit differently hoping to get some kind of answer that actually does answer the original inquiry.  I live in Georgia.  Turbotax did NOT count my IRA and annuity withdrawals as income and I should be paying taxes on these withdrawals?  Why is this.  I do not  and never did have taxes taken out ahead of time.  These are monies that taxes were never paid on.  I guess I will find another tax preparer since turbotax does not seem to be correct and I can't get an answer.  I am sure the IRA will send me a letter soon.  Sucks because I live on a fixed income and do not like surprises.  Thanks for a correct answer.  

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Which tax return are you referring to, federal or state?

If you are referring to the Georgia state income tax return and you are age 62 or older there is a retirement income exclusion where retirement income is not included on the Georgia state tax return.

Between ages 62 and 64 the exclusion is $35,000

Age 65 and older the exclusion is $65,000 

If you are referring to the federal tax return was the income from the IRA and annuity entered on the Form 1040 Lines 4a and 5a with the taxable amount entered on lines 4b and 5b?

Was this your total income?

Is your adjusted gross income on the Form 1040 Line 11 less than your Standard Deduction for your filing status?

Standard deductions for 2020

• Single - $12,400 add $1,650 if age 65 or older
• Married Filing Separately - $12,400 add $1,300 if age 65 or older
• Married Filing Jointly - $24,800 add $1,300 for each spouse age 65 or older
• Head of Household - $18,650 add $1,650 if age 65 or older

[taxes19511]

4b and 5b are both filled in with correct amount of year 2020!  I gave all the info from both brokerage firms including tax IDs and filling in all the boxes.  I know my regular income is just above poverty level but I thought everyone paid taxes on income from retirement distributions/withdrawals that were NEVER taxed!  Thanks again for your help.  I will call the brokerage firms. 

[VolvoGirl]

They are taxable and were included in your total income.  That is right.  But if you had tax withholding taken out of your other income you might not owe any more for the retirement withdrawals.   And you get a Standard Deduction of 12,400 for Single or 24,800 Joint (1040 line 12) off your total income before you pay taxes.  

So what is the Taxable Income on line 15?  Then the tax on all your income is on line 16.   Then check the rest of your return for withholding on line 25 and any credits you qualify for like the EIC on line 27.