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rramsook
rramsook, Enrolled Agent
Category: Tax
Satisfied Customers: 307
Experience:  Specialize in Individual,Corporate, and payroll tax matters.
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Hi, During 2011 I received an annuity maturity lump sum

This answer was rated:

Hi,

During 2011 I received an annuity maturity lump sum payment from an offshore Insurance Company into my local U.S. bank account by wire transfer.
I expect my bank has done the required reporting for a deposit that exceeds $10K.
I immigrated into the U.S. sixteen years ago and I am a citizen.
This long term retirement annuity was left to mature which it did last year (2011).
My U.S. 2012 tax form appears to make no provision for the retirement annuity lump sum I received.
The lump sum payment was taxed in the source country for which I have documentation.
I can find no form on the IRS website to complete and submit in this regard.
The IRS helpline does not answer.

Do I need to fill in any kind of form for this retirement annuity lump sum deposit into my bank account?

Sincerely,

Neville.

rramsook :

Hello, You will have to fill out an IRS form TDF 90-22.1 to report the foreign aunnuity account to the IRS.

rramsook :

you will find the form and instructions using this link:http://www.irs.gov/pub/irs-pdf/f90221.pdf

Customer:

Hi, Thanks for the prompt response on a Saturday night...

Customer:

If there is no account do I have to still report?

Customer:

IE: The annuity matured and I received a lump sum - end of story.

rramsook :

IRS rules states that US Citizen or resident must report all worldwide income on their tax return.

Customer:

I will happily report...just trying to zero in on the exact requirement.

Customer:

Is this classed as income since it was not earned?

rramsook :

you may report the money earned on the annuity, not the amount you contributed.

rramsook :

yes it will still be considered as income on your tax return.

Customer:

Since I arrived in the U.S. I did not contribute...this was a paid up annuity just accruing until it reached maturity.

Customer:

OK then which section on my tax form should it go into?

rramsook :

this will be reported on your 1040 line 16B

Customer:

You have helped me more than anyone else...thank you very much. I will gladly approve the payment.

rramsook :

thank you for using Just Answer!

Customer:

If you have no more related good advice I will say goonight and have a nice weekend ahead.

rramsook :

Have a great weekend. Good Night

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