survivor's benefits

[Possi]

Hello there,

It's the pest again. Today is full of questions and I cannot find the answers! (surprise...)

My new client and her husband get annuities. Taxable portions are calculated using the simplified rule.

Husband died in 07.

I have a 1099 for him..
I have a 1099 for her...

I have a 1099 for her ALSO for the survivor's annuity payment. Code 4.

Is that survivor's annuity payment 100% taxable, or do I continue the simplified general rule on that as well, reducing the taxable amount?

Thanks!!!!

~possi

[fliszt]

I have

continued to use the simplified method since it is still a joint return.
Larry

[Possi]

next year?

What about next year, when she will file a single return?

Will the survivor's benefits be 100% taxable or can I still use the general rule on those benefits?

thanks again and again and again........................

[Burke]

If I am not mistaken, since it is a survivor's benefit from the same annuity he was getting, she continues to use the SGR to reduce the taxable benefit until it is used up, if she lasts that long. If not, take on her final return.

[Possi]

thanks!

I appreciate that!
~possi