AnnieR Posted March 13, 2012 Report Share Posted March 13, 2012 Client received a 1099R from an annuity (IRA). 1099 shows amt. in box 1, nothing in box 2a and 2b checked. They did give me a receipt from the check they received, it shows the amount of the principal paid out and the amount of the interest. Would the interest be taxable and the principal not? Or would it all be taxable. Client is 74. TIA AnnieR Quote Link to comment Share on other sites More sharing options...
fredazcpa Posted March 13, 2012 Report Share Posted March 13, 2012 If from an Individual Retiment Account, and absent any 8606, non deductiable IRA, then 100% taxable, If from an Individual Retirment Annunity, then you need more information, IE how much invested, But from what you described, I would assume the first and tax at 100% as long as no 8606 in prior years tax returns Quote Link to comment Share on other sites More sharing options...
Randall Posted March 13, 2012 Report Share Posted March 13, 2012 The statement about principal and interest may be from the investment point of view (whether retirement account or nonretirement account) and not reflect tax basis and taxable growth above basis. If the annuity is an IRA, the insurance company may not know if it were a deductible or nondeductible IRA. The client needs to provide info this. As fredazcpa said, need 8606. Or history statements of money going into the IRA and source, with copy of 1040 showing no deduction. Quote Link to comment Share on other sites More sharing options...
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