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I am age 70 male. I have an annuity. Each year they send me

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I am age 70 male...
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: 1 year ago.Category: Tax
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Answered in 3 minutes by:
10/4/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,892
Experience: 15years with H & R Block. Divisional leader, Instructor
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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.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year 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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Category: Tax
Satisfied Customers: 15,892
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Experience: 15years with H & R Block. Divisional leader, Instructor

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