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Level 2
posted Feb 20, 2024 9:07:45 AM

We purchased an annuity 3 yrs ago. Amt. in Box 1 includes interest. Taxable amt. is shown in box 2a. Why is the entire amount showing in the retirement income section?

The annuity matured in 2023 at which time the principle and interest was distributed.

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1 Best answer
Expert Alumni
Feb 20, 2024 10:51:02 AM

Income from an annuity is reported on a Form 1099-R "Distributions from Pensions, Annuities, Retirements Plans, etc..."

It shows up on line 5 of your Form 1040 "Pensions and Annuities." As such, it is considered retirement income, so it appears in that section in TurboTax.

 

2 Replies
Expert Alumni
Feb 20, 2024 10:51:02 AM

Income from an annuity is reported on a Form 1099-R "Distributions from Pensions, Annuities, Retirements Plans, etc..."

It shows up on line 5 of your Form 1040 "Pensions and Annuities." As such, it is considered retirement income, so it appears in that section in TurboTax.

 

Level 2
Feb 23, 2024 4:54:58 AM

Thank you for the info. The way it works became clear when I looked at the 1040.