Tax question on annuity payout

[campbet]

What is the name of your state (only U.S. law)?
Florida

I just received a payment from an annuity that my grandmother left me. It was a non-qualified annuity with about $17,000 in interest since inception. My question is: do I pay estimated taxes on this interest now or do I wait and claim it next tax year (2010) as 2009 income? I currently work and have a salaried income.

 

[LdiJ]

What is the name of your state (only U.S. law)?
Florida

I just received a payment from an annuity that my grandmother left me. It was a non-qualified annuity with about $17,000 in interest since inception. My question is: do I pay estimated taxes on this interest now or do I wait and claim it next tax year (2010) as 2009 income? I currently work and have a salaried income.

You are going to have to claim it on your 2009 taxes as 2009 income whether you make an estimated tax payment on it now or not. An estimated tax payment would be a deposit towards your 2009 taxes.

It would likely be best to make an estimated payment. Get a consult with a local tax professional regarding how much of the annuity is taxable and how much of an estimated payment you should make.

 

[anteater]

Get a consult with a local tax professional regarding how much of the annuity is taxable and how much of an estimated payment you should make.

Or another possibility is to increase your withholding for the rest of the year.