annuity inheritance

[tanbaby1218]

What is the name of your state (only U.S. law)? ga. my mother recently passed away and she left money in an annuity account for myself and my siblings to split. this money was NOT from an employment situation, she just put it in the annuity account. will we be taxed on the amount we receive or will we be taxed on the interest it earned? she sold her house on the beach and paid taxes on the amount she received and then put the rest in the annuity account and a life insurance policy.What is the name of your state (only U.S. law)?

 

[LdiJ]

What is the name of your state (only U.S. law)? ga. my mother recently passed away and she left money in an annuity account for myself and my siblings to split. this money was NOT from an employment situation, she just put it in the annuity account. will we be taxed on the amount we receive or will we be taxed on the interest it earned? she sold her house on the beach and paid taxes on the amount she received and then put the rest in the annuity account and a life insurance policy.What is the name of your state (only U.S. law)?

It will be taxable to you in the same way it would have been taxable to your mother. The original principal will not be taxable, but the interest/earnings will be taxable. You will get a 1099 showing what amount is taxable and what amount is not taxable.