An annuity by inheritance can be taxed. An annuity is considered income by the Internal Revenue Service so you have to claim it on your taxes. It's classified as other income so you don't have to declare it on things where your income is a factor for qualification. The good thing about an annuity is that it pays out over time instead of in a lump sum. This really helps for tax purposes because it
. doesn't put you in such a high tax bracket where a huge percentage goes to taxes. For tax laws and regulations, go straight to the source at www.irs.gov.
