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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15182
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: 8 months ago.
Category: Tax
Expert:  Robin D. replied 8 months 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 8 months 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.

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