Have Tax Questions? Ask a Tax Expert for Answers ASAP
Typically the income from annuities is ordinary income rather than capital gains (because of the deferrqal feathur
sorry fr the typo "deferral" feature
Ot's called income in respect of a decedent
Also? typically annuities have a named beneficiary ... it's only in the case where there was no beneficiary on file that te estate is taxed
Was there a beneficiary on file with the insurance company, Hartford?
Another questons that will determine that answer to your questions\'; was the annuiy owned individually OR was the annuity inside an IRA?
Hartford beneficiary was the trust
the annuity was not an IRA
OK and this was a revocable trust right?
OK this will either be reported on the las tax return of the decedent (preferable) because the individual's tax brackets are at higher levels (same income taxed al lower levels) OR on the trusts tax return (1041)
If taxable income is: The tax is:
Not over $2,450 15% of the taxable income
Over $2,450 but $367.50 plus 25% ofnot over $5,700 the excess over $2,450
Over $5,700 but $1,180 plus 28% ofnot over $8,750 the excess over $5,700
Over $8,750 but $2,034 plus 33% ofnot over $11,950 the excess over $8,750
Over $11,950 $3,090 plus 39.6% of the excess over $11,950
Th IS progressive so not ALL at 39.6, but rather esch piece at the respective brackets (along wiyth any other income for the estate)
so 3960 + .39 x (101000 - 3960) all other things being equaL
there is very little other taxable income. Would you say about $39,000 would be a ball park figure?
You have it
ok that answer's my question
Glad to help!
If this has helped, I would appreciate a feedback rating of 3 (OK) or better (excellent, is ideal)… That's the only I get credit for the work.
However, if you need more on this, please come back here, so you won't be charged for another question.
Thanks for the rating Jack!
If you'd like to work with me again, you can either (1) add me as a preferred expert on your home page, (2) say “For Lane only,” at the beginning of another question OR (3) use my profile page: by clicking here: Lane (You can also copy and paste that Lane link for future reference)