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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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My mother died in 2010. She had an annuity that was part of

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My mother died in 2010. She had an annuity that was part of a living trust. When I surrendered the annuity they indicated that she had $3,900 in accumulated interest and charged $5,900 in surrender charges. For federal taxes on the trust does the surrender charge offset the interest income?
Submitted: 5 years ago.
Category: Tax
Customer: replied 5 years ago.
Relist: I still need help.
Expert:  Marvin,EA replied 5 years ago.
Hello and thanks you for using Just Answer. You will be able to deduct the surrender charge from the annuity as a miscellaneous itemized deduction on Form Schedule A-Itemized Deductions subject to 2% of your adjusted gross income. You must also claim the accumulated interest as income on your tax return.
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