Tax question about annuity

[ColinCodyMom]

Sorry for yet another one! My mom had to take money out of her annuity early last year which she was told was a loan that she has to pay back over time. Because it is a loan on her money, does she have to claim that as income on her tax return and if so, is it taxable? She hasn't gotten a form or anything and is ready to do her taxes. I would appreciate any help or advice!! Thanks.

 

[Cheshire Figment]

Borrowing from any retirement plan (such as an annuity) is a loan which must be repaid. It is not income for tax purposes, and repayment, even with interest, is not a deduction. If, for some reason, it is not repaid the unrepaid amount will then become taxable income.

Mike (CPA retired but still with about 20 tax clients)

 

[ColinCodyMom]

Borrowing from any retirement plan (such as an annuity) is a loan which must be repaid. It is not income for tax purposes, and repayment, even with interest, is not a deduction. If, for some reason, it is not repaid the unrepaid amount will then become taxable income.

Mike (CPA retired but still with about 20 tax clients)

Thank you!!! She is repaying it, but wasn't sure if she was to be waiting for anything to use with the tax return. I really appreciate your help!!