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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13116
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am age 70 male. I have an annuity. Each year they send me

Customer Question

I am age 70 male. I have an annuity.Each year they send me a check for interest earned.If withdraw part or all from the annuity would I have to pay tax on principal.
Submitted: 18 days ago.
Category: Tax
Expert:  Robin D. replied 18 days ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 18 days ago.

If you contributed after tax amounts to your annuity, your payments are partially taxable. You will not pay tax on the part of the payment that represents a return of the after–tax amount you paid. This amount is your cost in the investment.

You do not pay tax on the principle if you were already taxed on the amount you contributed.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

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