Tax Time Help

[GardenWeasel]

I am receiving an annuity payment from my late mother's policy for the next five years. They asked at the bank if I wanted them to withhold the taxes and I said yes. They withheld 10%, do I still have to report the rest as income? I can't seem to find an answer on the net and I really don't want to have to pay someone to do my taxes. I struggle through every year and it gets more complicated all the time. Any body familiar with this issue?

 

[ChaneyLakegirl]

You should be receiving a 1099R form with the gross amount, taxable amount and income tax withholding. You would report the gross income on 16a and the taxable portion on 16b. The withholding would go on line 62 with any other federal withholding you have.

Hope that helps.

Edited to say this is on form 1040 (not 1040a or 1040ez)

 

[GardenWeasel]

Thanks ChaneyLake girl. I tend to get ahead of myself and cause my self more stress. I just worry about trying to do so much I am not really qualified for, but not paying out money I can't afford kinda makes me a Jack of all Trades.

 

[Marianne]

The last three years, we have done our taxes online at the IRS site. They let you know if you need extra forms, etc. The cool thing is that after we filed, they sent us a letter saying that we qualified for some other things that we were not aware of. We just had to fill out the form and got a check back from them - two years in a row! And then they notified the state, and we got checks back from the state, too.

It's free, too! Since we're self employed, we used to pay over $150 to have our taxes done every year. It was rather scary the first time we did it, but now, hey, I'm a happy camper!

http://www.irs.gov/