In one of our joint non-retirement brokerage accounts my wife and I have an annuity which we purchased with funds that belonged to us and on which taxes had already been paid. That annuity permits us to draw funds from it if we wish. Last year we drew out about one thirtieth of the value of what is still in that annuity.
Today I received a 1099R from the insurance company which issued the annuity, and it shows a "taxable amount" in Box 2A.
I keep finding items on the web which state that we don't have to declare as income money we take out of an annuity until we have removed as much as we initially paid for it.
Now I'm confused, which is it?
Jeff