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    sandcrow's Avatar
    sandcrow Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Feb 3, 2006, 04:21 PM
    Paying taxes on inherited annuity
    My brother and I were beneficiary of an annuity. I understand we pay taxes on the taxable amount listed in box 2a of the 1099.
    My question is... do I treat this as income adding it to myearned income and possibly raising my tax bracket, or do I pay taxes based on the earned income bracket? What Federal tax form addresses this tax issue?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 3, 2006, 11:40 PM
    The income will probably be reported on Line 16B of Form 1040.

    It will raise your income taxes.
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