Asked 2/29/2008
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1099R form-amount received on annuities I have 2 annuities for which I have recieved 1099R forms. They both show a gross amount in box 1. Box 2a is labeled "taxable amount" which is a much lower figure. Box 5 shows the balance as employee contribution. How do designate these figures on my return? Where do show this income on my return? If I use the taxable amount figure for income, do I need to show the contribution amount in another place? |
Answer 1/1 - Submitted 11/26/2011
If an annuity is purchased with after-tax money, then the distributions that you take are only partially taxable income. The company that held the annuity shows this by showing the gross amount in box 1 of the 1099-R. A portion of your purchase price (determined by your life expectency) is shown in box 5. The difference between these two is probably the amount showing in box 2a.
On Form 1040, you enter annuity income on line 16. In 16a, you put the amount from box 1 of the 1099-R. In 16b, you enter the amount from box 2a. If box 1 and 2a were the same (such as an account funded entirely with pre-tax money), then you would leave 16a blank and enter the amount only on 16b.
The 1099-R, a copy of which the IRS receives, is substantiation enough of your contributions.
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