Are pensions and annuities taxable?

In Washington State, pensions and annuities are generally taxable. This means that if you receive pension income, you must include it on your state income tax return. The same is true for annuities. However, some of these income sources may be tax-exempt depending on the specific circumstances. If your pension is from a qualified governmental or military retirement system, it may not be taxable. Some annuities are also exempt from taxes if they are used to provide a survivor benefit after the original owner dies. Additionally, if the annuity is used to provide payments to a beneficiary during their lifetime, it may not be taxable. It is important to remember that the taxation of pensions and annuities depends on a variety of factors. Be sure to check with your tax professional to ensure you are in compliance with all applicable tax laws when filing your income tax return. In addition, if you are unsure whether or not your pensions or annuities are taxable, you should contact your plan administrator or other qualified tax expert.

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Are pensions and annuities taxable?

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