To calculate the taxable portion of an annuity payment,a taxpayer must determine all of the following except:

Question

Quizplus · Accepted Answer

The year in which annuity payments were first received is not directly used to calculate the taxable portion of an annuity payment. The calculation involves the cost of the annuity contract, the expected return, and the amount and frequency of the annuity payments to determine the exclusion ratio and taxable amount.

To Calculate the Taxable Portion of an Annuity Payment,a Taxpayer