Do You Get 1099 for an Annuity?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Do You Get a 1099 for an Annuity?

You might wonder whether you’ll receive a 1099 tax form if you have an annuity. The short answer is: it depends on the type of annuity you have and how it is used.

A 1099 tax form is used to report various types of income to the Internal Revenue Service (IRS), including income from annuities. However, not all annuities are required to issue 1099.

Annuity 1099

Here are a few scenarios in which you might receive a 1099 for an annuity:

  • If you receive payments from an annuity that you own: If you have an annuity and you start receiving payments from it, you’ll typically receive a 1099-R tax form. This form will report the amount of money you receive from the annuity and will be used to calculate your tax liability.
  • If you receive payments from an inherited annuity: If you inherit an annuity from someone else and you start receiving payments from it, you’ll also typically receive a 1099-R tax form. The form will report the amount of money you received from the inherited annuity and will be used to calculate your tax liability.
  • If you sell an annuity: If you sell an annuity, you may receive a 1099-B tax form. This form will report the annuity sale and will be used to calculate any capital gains or losses you incur as a result of the sale.

It’s important to note that the rules for reporting annuity income on your taxes can be complex, and the specifics will depend on the type of annuity you have and how it is used. For example, suppose you have questions about whether you’ll receive a 1099 for your annuity or how to report annuity income on your taxes. In that case, it’s a good idea to speak with a tax professional or consult the IRS website for more information.

Do You Get A 1099 For Annuities

Next Steps

We hope this guide has helped answer your questions about whether or not you will receive a 1099 form for an annuity. If you have any additional questions or would like to get a quote for an annuity, please get in touch with us. We would be happy to help you understand the benefits of an annuity and how it can work for you.

Do You Get A 1099 For An Annuity

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Questions From Our Readers

What should you do if you haven’t received a 1099-R for your non-qualified annuity?

If you haven’t received a 1099-R for your non-qualified annuity, the best course of action is to contact the insurance company that issued the annuity. You can request an electronic version of the form, which they should be able to provide.

I would like to know if the purchase price for a nonqualified annuity should have been included on the 1099-R as gross income when my spouse passed.

Generally, for nonqualified annuities, the 1099-R reports the total distribution amount, which includes both the principal (the purchase price) and any earnings. The taxable amount, however, usually only includes the earnings on the annuity, not the purchase price, which represents after-tax contributions.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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