Annuity payments
Partly taxable
Is An annuity Taxable?
Short answer: The earnings part of each annuity payment is taxable; the return of your original investment isn't.
Annuities inside an IRA are fully taxable.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B23-01655
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Annuity payments
Partly taxable
Individuals / Personal Taxes
Other Expenses
Personal Tax Deductions
The earnings part of each annuity payment is taxable; the return of your original investment isn't.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
The earnings part of each annuity payment is taxable; the return of your original investment isn't. Annuities inside an IRA are fully taxable.
Category
- Personal Tax Deductions
personal deduction
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retirement hsa
other retirement