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Level 2
posted Jun 6, 2019 10:01:02 AM

I invested 20,000.00 in fixed annuity for three years. $1,164.62. Now Turbo Tax is calling the entire 21,164.62, why?

Turbo Tax is calling the entire 21,164.62 income, when in fact the 20,000.00 was mine to begin with, I did not earning it in 2017, only 1,164.62 was earned.

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1 Best answer
Level 15
Jun 7, 2019 4:09:04 PM

The entire $21,164.62 is indeed considered to be income but only the $1,164.62 is taxable and only the $1,164,62 affects any other areas of your tax return.

Examine Form 1040 line 16b or Form 1040A line 12b to see that only the $1,164.62 is appearing on your tax return as being taxable.  This will be the result if box 2a of your Form 1099-R shows only $1,164.62.

1 Replies
Level 15
Jun 7, 2019 4:09:04 PM

The entire $21,164.62 is indeed considered to be income but only the $1,164.62 is taxable and only the $1,164,62 affects any other areas of your tax return.

Examine Form 1040 line 16b or Form 1040A line 12b to see that only the $1,164.62 is appearing on your tax return as being taxable.  This will be the result if box 2a of your Form 1099-R shows only $1,164.62.