Q. I’m a recent federal retiree and I’m trying to project my income for the year. Is the starting point for the taxable portion of my monthly annuity the amount before or the amount after the survivor’s benefit is deducted? From what I gather from IRS Pub 721, the deduction is a pre-tax deduction, but it lowers the tax-free portion amount of my monthly annuity. Is this correct?
A. Your taxes will be based on the amount of annuity you receive, not what you would have received if you hadn’t elected a survivor annuity.
Annuity taxes
2
Share.
2 Comments
Retiree now living abroad, do we still need to file federal and State taxes?
Yes, you need to file your federal tax forms. See https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad for more information on that. As for state taxes, you’ll have to check with your state. The rules may vary depending on where you last resided.