0
You do. You need to speak with your tax accountant and find ways to reduce your tax burden. The upside is that the transfer of wealth within the annuity avoids probate, both the time and the cost.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Do you have to pay taxes on an annuity you get monthly for a wrongful death?
NO
Do you pay taxes from annuity from husbands death?
YES!
Do you pay taxes on income earned in an annuity?
If the annuity is a non qualified tax deferred annuity (an annuity that taxes were paid on the money before they were placed into the annuity) you will pay taxes on any interest growth when it is removed from the annuity. If the annuity is a qualified annuity (no taxes were paid prior to placing the fund into the annuity) you will pay taxes on all withdrawals from the annuity.
Why do you have to pay Federal Income Tax on an annuity you received after your father's death?
The money you receive from the annuity is income. All income is supposed to be reported and taxes paid on it.It depends upon where that money came from in your fathers estate. If this annuity came from your fathers annuity which was established from IRA or a 401K which had never paid taxes on -then the annuity now needs to pay the taxes.If the annuity came from life insurance then their is no taxes to pay. If the annuity came from prepaid tax money there would be no taxes to pay. etc.
Can you invest death benefits tax-free?
No. You do not pay tax on the death benefits when you receive them but you do have to pay taxes on investment income from such benefits as anything else.
Do I have to pay taxes on a money market my mother left me when she passed away in Jan. 2015 if I roll it over into my annuity account?
Do I have to pay taxes on a money market my mother left me when she passed away in jan. 2015 if I roll it over into my annuity account?
Why do you have to pay death taxes?
You don't have to pay taxes.. But the government says they tax the transfer property at your death..
Do you pay taxes on your unemplyment benefits?
yes
If you inherited an annuity do you have to pay taxes on it?
I feel like we were taken advantage of...Advised that our inheritance of an annuity was not to be taken in a lump sum, because of taxable income....They talked us into taking another annuity...which we are paying taxes on!What re course do we have, other than a lawsuit?Which I may consider...
Do family members have to pay taxes on a parent's annuity when parent deceases?
Yes the annuity payments are taxable income to the beneficiaries in the same way that they were taxed to the deceased taxpayer.
Do you pay taxes on SS Benefits at age 66 and working?
do i have to pay taxes on working income after age 66
Can you cash in your annuity?
Yes you can. You will most likely pay a variety of fees and taxes depending on your age and how long you have been collecting on the annuity. There are applicable surrender fees, but you can cash it out if you want to.
