with the tax treatment depending on the type: In either case, at the end of the year, the annuity company will file a Form 1099-R showing exactly how much, if any, of that tax year’s ...

Life insurance is one example: Payouts to beneficiaries are received income tax free. Longevity insurance — in the form of income annuities — also receives some tax benefits. (Those benefits ...

The income from an annuity is typically taxed at regular income tax rates, not long-term capital gains rates, which are often lower. Most buyers of annuities aim to create a steady stream of ...

While annuity tax rules aren’t too complex ... You must claim the interest earnings as income on your 1040 form and pay tax even if you don’t withdraw or use the income.