Inherited money in 2015...paid taxes on my portion after split with siblings. placed in annuity withdrew some this year..i don't have to pay taxes again do I?

[Coleen3 · Accepted solution]

You would have to pay taxes on any gains the annuity made, but not your original investment.

[lrumfola]

Thank you. So how do I report the 1099 ...put 0 in the taxable income?

[Coleen3]

What do boxes 1 and 2a say?

[Coleen3]

Box 5. Generally, this shows the employee’s investment in the contract (after-tax contributions), if any, recovered tax free this year; the portion that is your basis in a designated Roth account; the part of premiums paid on commercial annuities or insurance contracts recovered tax free; or the nontaxable part of a charitable gift annuity. This box does not show any IRA contributions. If the amount shown is your basis in a designated Roth account, the year you first made contributions to that account may be entered in box 11.
Box 9b. For a life annuity from a qualified plan or from a section 403(b) plan (with after-tax contributions), an amount may be shown for the employee’s total investment in the contract. It is used to compute the taxable part of the distribution. See Pub. 575.