Your annuity starting date is used to determine the total amount of annuity payments that you can exclude. Once the annuity starting date has been determined, it does not change.
- If you have an annuity that was started before 1987, the exclusion is not limited to the cost of the annuity. You can continue to take your monthly exclusion for as long as you receive your annuity.
- If you have an annuity that was started after 1986, the total amount excluded paid to the employee and survivor annuitant cannot exceed the cost basis of the annuity. Any unrecovered cost is deducted as a itemized deduction on the final tax return.
Where do I enter my unrecovered investment pension (annuity)?
To enter the unrecovered cost into the return, make an entry in the:
- Federal Section
- Deductions
- Itemized Deductions
- Miscellaneous Deductions
- Unrecovered Investment in Pension