How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Anne Your Own Question
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2430
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Type Your Tax Question Here...
Anne is online now
A new question is answered every 9 seconds

How do I handle large Surrender fees imposed on annuity cash

Customer Question

How do I handle large Surrender fees imposed on annuity cash surrender contracts?
Ellen McIntosh
Submitted: 2 years ago.
Category: Tax
Expert:  Anne replied 2 years ago.
I'm Anne. I've been preparing taxes for 27 years and I'll be helping you tonight.
Since you didn't pay the salesperson's commission, you don't get to deduct the surrender charge. Instead, your loss is already accounted for in the surrender value of the annuity. You would be accounting for surrender charges twice if you claimed a loss on an annuity and tried to deduct the surrender charge in the same year. Your surrender value that you receive is already net of surrender charges.
Please see URL below:
If you have any questions, please post them here and I'll be notified.
If this has answered your question, please take the extra minute to rate positive ( by clicking on the smiley faces or stars) so that I will be given credit for working with you today.
It is only through positive ratings that we are compensated for our time and knowledge
Thank you for choosing justanswer.