insurance annuity & taxes

[sng]

What is the name of your state? IL

I have a question, although I'm not sure I'm posting in the right section, so any help would be appreciated. My husband recently received an annuity payment from an accident when he was a child. I don't know the exact details, but his mother invested the insurance money when the accident happened and now that he's old enough he will be getting a couple of annuity payments. We are just not sure about paying taxes on it. Is there anything special we need to do? Is it just taxed as normal income when we file taxes next year? We are concerned about holding some of the money back in order to be able to pay the taxes on it!
Thanks in advance!!What is the name of your state?

 

[Dandy Don]

Contact the annuity company and ask whether they have withheld state taxes and/or federal taxes (they can look that up on his account) and they will be able to tell you if any amounts are being withheld for taxes. Another way to find out is that they will be sending him a Form 1099-R at the beginning of next year if that form is needed for your tax returns.

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