tax on annuity

CL7 — Thu, 03 Apr 2025 22:48:20 GMT

I received my first annual annuity payment of $5,000 in 2024, which will continue until I pass away, with the remaining funds going to my descendants. The total annuity cost is $50,000, plus a $2,000 premium enhancement and a 7% charge.

According to IRS rules, my first payment may be a fraction of the payment period multiplied by my exclusion percentage to determine the tax-free portion. I found that my taxable amount is $2,045.45.

On my 1099-R form, the gross distribution and the taxable amount are both $5,000. Where can I enter the corrected taxable amount of $2,045.45 in TurboTax? Thank you!

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tax on annuity