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Should I receive a 1099 for payout from annuity if we already paid taxes on it?
My husband changed jobs last year and decided to pull the money out of his annuity from his previous job. He received a lump-sum payment, for which he paid taxes on. (20%) Are we required to count that amount as income even though we already paid taxes on it? As of today, we have not yet received a 1099 form in the mail (and it would not be available online.) We live in Ohio.
3 Answers
- StephenWeinsteinLv 79 years agoFavorite Answer
Yes. You have paid some taxes already, but you have not yet paid the correct amount, which is cannot be determined until you file, and is not likely to be exactly 20%.
When you file, you must claim the amount as income, calculate the correct amount of tax, subtract what you already paid, and pay the rest.
- ?Lv 79 years ago
Don't confuse the 20% withholding with paying taxes.
The annuity is taxable income to be included in your tax return. The amount of taxes owed will depend on whether or not your tax rate is higher or lower than 20%
- Go with the flowLv 79 years ago
It sounds like you took money out of a 401K - not an annuity.
The company keeps 20% to help you pay for taxes and the 10% penalty.
Wait for information to come in the mail.
You should receive all this by mid-February.
