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Level 2

Solved

When to Declare Income

Forum|Forum|3 years ago
January 23, 2023
2 replies
40 views

On January 4, 2023, I received (in the mail) a check from an annuity dated December 30, 2022. Do I declare this income on my 2022 taxes or on my 2023 taxes?

Thank you.

Best answer by JulieS

Expert Reviewed

Yes, this will count for your 2022 taxes.

Cash basis taxpayers, which almost all individuals are, report their income when they receive it and their expenses when they pay them. That being said, since this is an annuity, the annuity company or broker will send you a 1099-R to report the income. Since they dated it in 2022, I would expect this distribution to be included on the 2022 1099-R form.

If they included it in 2022 and you don't want it report it that way, contact the company or broker to get the form corrected. If the year you report it, doesn't match the 1099-R form, you will get an IRS letter.

Level 15

The annuity should issue a 2022 form 1099-R for the distribution that happened in 2022 and as such it goes on the 2022 return.

The fact that it did not show up in the mail until 2023 is irrelevant.

JulieSAnswer

Level 15

Expert Reviewed

Yes, this will count for your 2022 taxes.

Cash basis taxpayers, which almost all individuals are, report their income when they receive it and their expenses when they pay them. That being said, since this is an annuity, the annuity company or broker will send you a 1099-R to report the income. Since they dated it in 2022, I would expect this distribution to be included on the 2022 1099-R form.

If they included it in 2022 and you don't want it report it that way, contact the company or broker to get the form corrected. If the year you report it, doesn't match the 1099-R form, you will get an IRS letter.

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