Are pensions and annuities taxable?

In Florida, pensions and annuities are generally taxable income. To determine if a pension or annuity is taxable, you must first know its “classification”. For instance, pensions received from a previous employer are usually taxable. However, if the pension was contributed to by your employer and vested with the government, it may be tax-free. Annuities, such as those from insurance companies, can also be taxable or non-taxable depending on the situation. If the annuity is taxable, the amount you must pay depends on several factors. These include whether you have made contributions to the annuity, the state that it was purchased in, and how and when you receive payments from it. If your annuity is taxable, the money you receive will be taxed as ordinary income at the same rate as your other income. If you are unsure about whether a pension or annuity is taxable in Florida, it is best to consult a tax professional. They can help you understand the different rules and regulations regarding pensions and annuities and help you determine whether it is taxable or not.

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Are pensions and annuities taxable?

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